If you’ve been holding onto your Ethereum (ETH) like it’s just a digital collectible, think again! According to a recent thread by William Mougayar on X (posted on July 24, 2025), ETH is evolving into a powerhouse of productivity. No longer is it just a store of value or "digital oil"—it’s now a versatile asset that can generate sustainable yield through various onchain strategies. Let’s dive into this ultimate guide and explore the 10 ways you can put your ETH to work!

Why ETH is More Than Just a Holding

Mougayar kicks off the thread by highlighting that ETH’s programmability opens doors to earning passive income. Whether you’re a crypto newbie or a seasoned DeFi enthusiast, these strategies can help you maximize your returns. The thread comes with a handy infographic (see above) that breaks down each method, making it easy to visualize your options.

1. Native Staking: Secure the Network, Earn Yield

One of the simplest ways to earn with ETH is through staking. By locking up 32 ETH, you can become a solo validator, or use platforms like Lido or Rocket Pool for smaller amounts. This secures the Ethereum network and offers a steady yield of about 3–5% APY. Plus, you get liquid staking tokens (like stETH) that you can use in other DeFi protocols.

2. Lending ETH: Passive Income Made Easy

Lending your ETH on platforms like Aave or Compound lets borrowers use it while you earn interest—typically 1–5% APY. It’s non-custodial, meaning you retain control, and it’s a low-risk way to grow your holdings.

3. Collateralized Borrowing: Leverage Your ETH

Want to unlock liquidity without selling? Use ETH as collateral to borrow stablecoins like DAI or USDC on MakerDAO. You can then reinvest those funds into farming or staking, potentially earning 5–20%+ indirectly. Just watch out for liquidation risks if ETH’s price drops!

4. Liquidity Provision: Earn Trading Fees

By providing ETH to decentralized exchanges (DEXs) like Uniswap or Curve, you earn a share of the trading fees. Pair it with USDC or stETH, and you could see yields of 5–20%+. Be mindful of impermanent loss, though—a risk where your holdings’ value shifts due to price changes.

5. Yield Farming: Boost Your Returns

Take it up a notch with yield farming! Stake your ETH or LP tokens on platforms like Convex or Yearn to earn protocol rewards, often including governance tokens. Yields can soar to 10–100%+, but they’re volatile, so proceed with caution.

6. Restaking: Double-Dip on Rewards

With Ethereum’s evolution (thanks to ETH 2.0), you can restake your ETH to secure additional services like oracles or middleware via EigenLayer. This can add 5–15%+ on top of your staking yield, making it a smart move for advanced users.

7. Automated Vault Strategies: Set It and Forget It

If managing strategies feels overwhelming, try automated vaults on Yearn or Instadapp. These smart contracts optimize your ETH yield (5–20%+) by auto-compounding and rotating strategies for you.

8. ETH-Backed Stablecoin Minting

Use your ETH or stETH to mint stablecoins like eUSD on Lybra, then hold or farm them for 5–15%+ yield. It’s a creative way to stabilize your earnings while keeping ETH in play.

9. Derivatives & Structured Products

For the risk-takers, ETH options and futures on Ribbon or Synthetix offer variable returns through covered calls or hedging. It’s complex but can unlock significant upside if managed well.

10. ETH Yield Stacking: The Ultimate Combo

Why stop at one strategy? Stack them! For example, stake ETH to get stETH, lend it, restake it, mint stablecoins, and farm—all in one go. Mougayar suggests this could blend yields into a whopping 10–30%+, turning ETH into “superfluid productive capital.”

A Summary Table to Guide You

Mougayar wraps up with a handy table summarizing these strategies, including yield ranges, risk levels, and platforms. Staking offers low-risk 3–5% APY, while yield farming can hit 10–100%+ with high risk. Automated strategies and restaking sit in the middle, offering 5–20% with moderate effort.

The Bigger Picture

ETH isn’t just for hodling anymore. As institutions adopt it for treasury strategies (think corporate staking), understanding these yield opportunities could give you an edge. Mougayar’s full guide (linked in the thread) dives deeper—perfect for anyone looking to level up their crypto game.

So, are you ready to turn your ETH into a money-making machine? Start small, explore one strategy, and watch your portfolio grow. Got questions? Drop them in the comments—we’d love to help you navigate this exciting world of ETH yield!