Unlocking 20% ETH Interest with Fluid: A Simple Guide

August 7, 2024

# Unlocking 20% Interest with Fluid: A Simple Guide

Hey everyone! Today, I'm excited to share my experience with Fluid, a decentralized lending platform that's currently offering a 20% (variable) return on Ethereum.
If you like video tutorials more, here is the [video version of this article.](https://www.youtube.com/watch?v=7Olz3ezfwWQ)

### Step-by-Step Guide

**1. Switch to Arbitrum:**  
First, you need to switch to the Arbitrum network. If you don’t have Wrapped Staked Ether yet, you can easily buy it on 1Inch. Quick tip: Wrapped Staked Ether is actually worth more than regular Ether, so don’t be surprised if you get less of it in return.

**2. Buy Wrapped Staked Ether:**  
Go ahead and purchase some Wrapped Staked Ether. Now, let's move on to depositing it.

**3. Deposit and Start the Strategy:**  
Once you’ve deposited your Wrapped Staked Ether, you can start leveraging. Essentially, borrowing has a lower interest rate than lending. For example, if borrowing costs 2.8% and lending gives you 4.8%, you earn a 2% profit from the differential.

**4. Leveraging:**  
You can borrow Ether, swap it for more Wrapped Staked Ether, deposit it again, and repeat the process. This creates a high leverage situation where you earn staking rewards on all your deposits.

**5. Use the Leverage Button:**  
No need to do all this manually. Fluid provides a handy leverage button that lets you set up your position with a flash loan. Just make sure you stay within the safe range to avoid getting liquidated.

### Stay Aware of Risks

Though the Wrapped Staked Ether price is generally stable, it’s tied to Ethereum's price and the yield it earns. Flash crashes can happen, and you could lose your entire position, so always be cautious.

### Check Your Earnings

I checked my position a few days later and saw that I’m earning 20% interest. When you’re ready to close your position, there’s a deleverage button. I used 1Inch to deleverage, signed the transaction, and my position closed smoothly.

### Final Thoughts

Everything worked well—I ended up earning more Ether than I initially deposited. Even after closing my position, I still had some Wrapped Ether as part of the profit. You can choose to either withdraw and swap it to Ether or let it stay wrapped.

That’s it for today! I hope you found this helpful. If you enjoyed the guide, don’t forget to subscribe for more tips and tricks on decentralized finance!

Thanks for reading!

ps: 20% of people forget to claim their airdrops, but you can get Free Wallet Alerts here 😉