Will there be higher APYs and liquidity post merge?
We expect the reward rate to increase immediately post-merge because validators will now earn transaction fees (called tips) for including transactions in blocks on Ethereum. However, we cannot determine if the reward rate for staking ETH will increase or decrease in the short, medium, or long term after the Merge.
This will depend on many factors, such as how many validators are staking and unstaking, the overall user activity on the Ethereum network, economic parameters, and other fee generating activity (e.g., MEV).
For more details on the potential change in rewards, visit these resources on Ethereum.org:
Will the rewards accrued by Beacon Chain validators be available after the Merge?
No. Stakers will be unable to claim Ethereum stakings rewards and will be unable to withdraw their staked ETH until the post-Merge “cleanup” phase, which is expected to occur 6-12 months after the Merge.