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Introducing ETH Staking Yield Swaps (ETHYLD)
A groundbreaking cryptocurrency derivative—the ETH Staking Yield Swap (ETHYLD)—has arrived on BitMEX. This innovative product enables users to trade and speculate on daily ETH staking yields with up to 2x leverage, starting today at 04:00 UTC.
ETHYLD unlocks new trading and hedging opportunities, including exposure to the value of ETH staking and validator rewards. Stay tuned for more derivatives launches.
How ETHYLD Works
Developed by BitMEX, ETHYLD allows traders to "swap" the variable yield from staking ETH on Lido (floating rate) for a fixed rate—or vice versa.
Key Components:
- Floating Rate: Tied to variable yields from Lido Finance’s validator pool. Stakers receive stETH tokens, with rewards accruing daily at 12:00 UTC.
- Fixed Rate: Reflects traders’ projections of the average daily ETH staking yield until contract expiry.
Traders can use 2x leverage and must maintain margin requirements to avoid liquidation.
Unique Features:
Payer vs. Receiver Roles:
- Payer (Long Position): Pays fixed, receives floating.
- Receiver (Short Position): Receives fixed, pays floating.
- Daily settlements at 12:00 UTC based on the floating index (.BETHYLD).
Who Should Trade ETHYLD?
Receivers (Short Positions):
- Validators seeking to lock in future yields.
- Traders betting staking yields will fall below swap rates.
Payers (Long Positions):
- Entities paying Ethereum chain fees.
- Traders anticipating yields above swap rates.
Example Scenario
A trader pays a 4% fixed rate on a 1 ETH nominal ETHYLD contract. If the floating rate is 4.5%, the net gain would be: 1 ETH × (4.5% – 4%) × (1/365) = 0.00001370 ETH.
Formula: P/L = Quantity × (Closing Fixed Rate – Opening Fixed Rate) × (Remaining Days/365) × Direction (1 or -1).
Contract Specifications
| Parameter | Detail |
|------------------------|--------------------------------------------|
| Symbol | ETHYLDZ22 |
| Expiry | Quarterly, last Friday of the month (12:00 UTC) |
| Margin Currency | ETH |
| Max Leverage | 2x |
| Fee Structure | Maker: -0.01%; Taker: 0.075% |
For full details, visit BitMEX.
FAQs
1. What’s the minimum trade size for ETHYLD?
1 ETH nominal value.
2. How often are floating rate payments settled?
Daily at 12:00 UTC.
3. Can I hedge ETH staking rewards with ETHYLD?
Yes! ETHYLD lets you convert variable staking yields to a fixed rate.
Disclaimer: Trading cryptocurrencies involves risk. BitMEX does not endorse any specific trading strategy.