How Ethereum Whales Use Loops to Leverage Stake Millions in ETH

This study examines direct and indirect leverage staking strategies using data from Aave, Lido, and Curve over nearly 1,000 days. It identifies user behaviors, loop patterns, and APR outcomes—revealing that most users outperformed traditional staking yields. The Terra crash and Ethereum Merge significantly impacted staking activity volumes.

Table of Links

Abstract and 1. Introduction

2. Related Work

3 Background

3.1 Blockchain and DeFi

3.2 Ethereum PoS

3.3 Staking Options

3.4 LSD

3.5 DeFi Lending Protocols

4 System Model and 4.1 System Participants

4.2 Leverage Staking with LSDs

5 Analytical Study

6 Empirical Study

7 Cascading Liquidation

7.1 stETH Price Deviation and Terra Crash

7.2 Cascading Liquidation and User Behaviors

8 Stress Testing

8.1 Motivation and 8.2 Simulation

9 Discussion and Future Research Directions

10 Conclusion and References

A. Aave Parameter Configuration

B ...