Harvest has made a new addition to its Ethereum Chain and once more they have added a Uniswap V3 farm. At first, I thought it was a typical ETH-ETH2 liquidity pool which would make sense with the hard fork Ethereum had today and how the coin has really gained a ton of momentum recently. The farm though was not the initial pair I thought it was actually ETH-sETH2 and that makes a huge difference!
sETH2 is a unique and really interesting take on ETH2 staking. One of the biggest complaints right now with ETH staking is how your ETH is locked up and you really cannot do too much with it. It will only be unlocked once ETH 2.0 is completely rolled out. Since ETH 2.0's final rollout is currently unknown it's a bit of a gamble to lock up your ETH. This is addressed with StakeWise's sETH2 token which tokenizes the staking yield separately from deposits. This allows for the vital effect of compounding to take place and increases the efficiency of staking your ETH.
The ability to have access to the compounding yield is pretty huge and separating the rewards from the deposit allows one to not have to worry about impairment losses. What stuck out to me about this farm, in particular, was how high the APY still was roughly 24 hours after the launch as it is still over 70% and currently is all pair in iFARM. LP providers will also get Uniswap fees however that is currently not listed so there is further room for it to increase and grow especially with ETH being a hot commodity right now.
StakeWise's method of breaking up the rewards from the deposit is a novel idea in helping encourage more people to stake ETH since it allows you to do something with it. If you just stake on Coinbase those funds are just frozen right there and you cannot move them whereas you can swap sETH2 out if you so chose to! Harvest's identification and implementation of this pairing is amazing for their community as ETH gains momentum and people can tap into staked ETH now!