Kubernetes documentary: https://www.youtube.com/watch?v=BE77h7dmoQU and https://www.youtube.com/watch?v=318elIq37PE.
Stakewiz allows you to set up alerts when a validator is delinquent or changes its commission fees: https://stakewiz.com/.
Saber, AMM on solana. I like raydium better.
More on yield farming.
Particularly leveraged yields, LYF.
Francium (on solana) is big in this space: https://francium.io/.
Tulip (on solana) as well: https://tulip.garden/.
They support auto-compounding vaults, no action necessary.
Their leverage farming option: basically offering select liquidity pools on both raydium and orca, but you only have to provide one of the tokens in the pair; you can automatically swap the necessary amount of yours to match the other. And 3x leverage.
https://medium.com/@Cogent_Crypto/solana-staking-guide-part-1-6a6a85f07b56 focuses on native staking and an intro to liquid staking. Part2 will focus on solend and defi strategies.
Like Yearn on eth, Sunny is a yield aggregator on solana: https://medium.com/sunny-aggregator/introducing-sunny-solanas-composable-defi-yield-aggregator-57e70566304a. Would like more info, but they don’t have any docs. Just twitter/discord. https://app.sunny.ag/.
Remember for marinade, msol accumulates rewards by increasing its value relative to sol, not by adding additional tokens to the staked account.
You don’t need to hold msol to accumulate rewards, per say, you just need to have ownership of it to trade back to sol for greater value at some time. You can lock it up in an LP or lender or vault deposit in the meantime.
It’s currently ~1.033sol. Track here: https://stats.marinade.finance/d/sqUQd1Onk/marinade-kpi-dashboard. 6.67% APY.
Adjusted the marinade-solend leverage. Can’t use turbo pool (up to 90% instead of 75%, LTV = loan-to-value, or percent-of-supply-you-can-borrow) because they don’t allow msol.
Each round of supply-borrow is reduced proportional to the LTV. This is mathematically a sum of numbers, each reduced by that factor. This is a geometric series. (1)x + (0.75)x + (0.75)(0.75)x…etc where x is your initial investment.
Which is the same as the sum from 0 to n of LTV raised to that power. If you do 5 rounds of supply-borrow, then it’s the sum of LTV raised from 0 to 4.
This reduces to (1-LTV^n)/(1-LTV). So if I do 5 rounds of supply-borrow in solend’s main pool (75% LTV), it’s 3.05. If I do 10, it’s 3.77.
The limit as n->inf, the infinite geometric series, (if LTV between 0 and 1, which is true) reduces VERY simply to 1/(1-LTV). Same example above, inf rounds in solend LTV 0.75, it’s 4. The max you can get is 4x leverage at 75% LTV.
In the turbo pool, if you do infinite rounds, you can get 10x leverage.
This is all pretty obvious, but worth going through the math. 10 leverage rounds is fine.
So how do we weigh leverage against APY? Take an example of 2.5k seed.
With 6% APY from msol and 11% from synthetify, you get 17% of 2.5, you get $425 of passive income (in the first year).
With 6% APY from msol, +1% on msol lender supply, -3% on sol lender borrow, +5% slnd/mnde rewards. Total APY is less, 9%, but on 10k (leveraged 4x), $900 in first year. All numbers rounded, but conservatively to exemplify. Relative to the original position, 900/2500, your effective APY is 36%.
There’s subtlety, but just compare APY to leverage. If a leveraged position earns half the APY, but allows >=2x leverage, it’s still worth it.
Impermanent loss.
While your money is providing liquidity in an LP, you’re making from the fees of the people who swap with that liquidity.
If the value of simply holding those tokens would have been better than the rewards from the LP, you’ve taken an impermanent loss (loss because loss, impermanent because you haven’t pulled out).
Can happen in either direction. The price of the token drops, but your liquidity pool value drops by more than that.
Overall, you want the relative value of the pair to stay the same. If either token moves in a direction away from the other, you will have impermanent loss. If they both increase the same amount, or both decrease the same amount, or both don’t change, then you don’t have any impermanent loss. You collect the full profit of the fees from the trades enabled by your liquidity.
Lots of arbitrage opportunities in defi from liquidity price differences across exchanges. This is actually what drives the LPs back to 50/50. AMMs will keep adjusting price (constant product, as more people buy eth the price will increase) to the proper market as arbitragers take advantage and profit from the difference.
L2/sidechain yield farming.
Staking occurs on eth mainnet? Not MATIC on the polygon sidechain? Not sure exactly what that means. PoS is only on the sidechain.
Confirmed: https://blog.stakin.com/a-guide-to-delegating-polygon-matic/. You have to hold and delegate MATIC on eth mainnet. Dumb. Just gonna leave the bridged MATIC on the polygon network for actual use, rather than passive yield.
Just added to LPs on uniswap for polygon/arbtitrum/optimism.
