Increase Staking Income with Borrowing on Morpho Blue
Morpho Blue is offering the ability to borrow WETH against osETH collateral, allowing users to increase their staking income. By depositing osETH and borrowing WETH, users can potentially earn higher yields on their staked assets. Borrowing WETH currently has a low interest rate of 1% per year, while staking it can yield 3.5% or more. However, users should be aware of the risks involved, such as the depegging of osETH. It is recommended to keep the loan-to-value (LTV) ratio below 86% to avoid liquidation, with a recommended maximum LTV of 75%. For more details, check out the guide created by Morpho Labs.