[INVESTMENT] SOL deployment - Liquid Staking

Hello all,

Following the approval of the 1M USDC SOL Purchase we started to purchase SOL on the open market, we are converting 50k USDC per day to Solana and as of today we have already accumulated > 2000 SOL.

Currently you can stake your Solana at any validator and receive circa 7% inflation reward in SOL per year, however while they are staked you can not utilize the same Solana in DeFi.

Liquid staking overcome this problem! You can stake your Solana at certain validators which issue back an IOU that 1) accrues the inflation reward and 2) it can be used in DeFi for extra yields. Two birds with one stone.

As of today there are several Liquid Staking providers: Marinade, MonkeValidator, Socean, Everstake, etc we should allocate to them keeping in mind 1) fees charged and 2) potential rewards from in DeFi (Saber, Sunny, Orca, etc)

In the next weeks we should have around 10k SOL in our Treasury and they could be allocated among different liquid staking providers and then re-invested in LP positions on AMM, I would like to use this thread to discuss the split between the different validators and how to best squeeze more yields from the staked Solana.

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In my opinion we can liquid stake 50% of the SOL (in mSOL, daoSOL, etc…) and then combine them with the relative SOL to creare a 1-1 pair for DeFi (like mSOL-SOL, daoSOL-SOL, etc.)

At the moment I see Sunny and Quarry as a strong option for where to farm.
Screenshot 2022-01-28 at 20.59.34
Screenshot 2022-01-28 at 21.01.52

Do we take just the top 3/4 validators (like the ones with yield above 10% in DeFi) or we wanna spread it across all possible validators?

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It’s not clear to me what kind of risks you take when you farm the IOUs… What’s the point of staking if it doesn’t effectively lock up capital?

Anyway, all this farming stuff is over my head. Just try to diversify adequately. If the yields are too good to be true, they probably are…

There’s a pretty interesting opportunity using mSOL at the moment (Marinade Finance), I would like to stake Solana to get mSOL, provide them as collateral on Hubble Protocol and mint USDH from it using 50% LTV. We can use those USDH in the Stability Fund at > 100% to farm HBB, those HBB can either be sold outright or staked.

We should mint mSOL, and replicate the strategy as we did with daoSOL but on a different pool. It would be mSOL/SOL in this case. @heremitas

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stSOL/SOL providing good returns in LDO token at the moment. I’m bullish on Lido as it’s the premier liquid staking solution with 10B in AuM between different chains.

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More on this, we could mint more USDH, say 1000SOL → mSOL → USDH 50% TVL and then Mercurial new 3Pool

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You’ve lost me there, how many layers does this proposed transaction have now? :smiley:
Anyway, expertise is what I’m “paying” you for, so have at it IMO.

Would feel more comfortably if some more people could weigh in. Maybe some of these discussions should be had also on discord? I feel there are a lot of people in that chat that don’t even look at these forums.

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This one above specifically has 3 layers, I think we could make some info-graphics to share mode details about these strategies.

Similar to this but by using Aldrin exchange we can also obtain LDO and RIN token. Note that pool is not 50:50 but 83/17.

We still have circa 5000 SOL not deployed so I think we could do another round of liquid staking strategies

  1. Doing some more diligence, I got more bullish on RIN, I will write a proper breakdown of why in another thread. For that I propose to add to our position on Aldrin stSOL/SOL and deploy another 1000 SOL on the above pair. (RIN + wLDO rewards)

  2. Stake 1000 SOL via Marinade (mSOL) and deployment on Port Finance (MNDE + PORT rewards)

  3. Stake 1000 SOL via Lido (stSOL) and deploy them on Mercurial stSOL/SOL (LDO + MER rewards)

  4. Deploy 500 SOL on Orca scnSOL/SOL, this one has low yield but if Socean issues a token they might add some rewards on Orca as they already did on Solend.

  5. Stake 1000 SOL via Lido (stSOL) and lend on Larix stSOL (LDO + LARIX rewards)

By doing this we are diversified in terms of both platforms and tokens we farm.

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Super! Let’s go!! i like this diversification

I’m going on and starting a vote on 2) and 5).

For proposal 2 I suggest deploying on Mercurial given its current higher rate compared to Port.

Adding a proposal for mSOL/SOL on Orca too, as it brings the reward on vanilla Solana north of 10% (7% inflation rate + 5% in other tokens reward)

Lot of new incentives are being added for stSOL pool, and we are bullish and accumulating LDO. We might as well start staking the new SOL we acquired recently on more yield-ehancing pools.

Mostly we can add to Larix and Mercurial, open new position at Port Finance and Apricot.

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Let’s put those idle SOL to work by lending on Francium, both SOL and stSOL have > 10% rate (no additional tokens). Adding proposal now

Finished the 1M SOL purchase we still have around 5500 SOL available to deploy. I’d say we “tag along” on those protocols where TVL is already high (vetted by other players) and where yield is above average. This means we can top up:

stSOL/SOL on Mercurial and Aldrin (1500+1500)
stSOL on Francium and Apricot (1000+1000)

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totally agree - for me let’s quickly vote and go ahead to get that fuc***g yield!!

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Hello, it’s time to make our new SOL productive, there are a bunch of pools where we already have liquidity that have interesting yields (Mercurial, Raydium, Aldrin).

I’ll run some calculations to see how we can best allocate to these pools

would propose to close Hubble position, it’s tiny and collateral intensive, no need to keep it open right now imo

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