Yield Farming on Solana: Join the Billion Dollar Club to Max your Earnings!
https://www.youtube.com/watch?v=BAGm1R6YlZU
Transcript:
Looking for the best opportunities to yield farm in DeFi? If so, you’re on the right channel, today we’ll dive into one of the most profitable blockchains to be a yield farmer on, which is Solana. If you enjoy this type of content and take value from it, you know the drill, like and subscribe, and if you’re new to yield farming, check the related comment in the description to learn how everything works and how you can get started even as a complete beginner now let’s dive in Solana is among the most used blockchains in terms of active users and volume
it gets a lot of attention from the meme coin chasers but that only helps the chain to hit higher volumes and with higher volumes comes more fees, meaning that yield farmers can definitely profit. Current EVL is a little over 6.2 billion dollars, making it the third ranking blockchain, but let’s look at some of the other metrics. If you look at 24 hours volume, Solana takes the lead.
It almost doubles the volume from Ethereum, the main blockchain when it comes to users activity, TVL and also deployed protocols and that tells a lot of the potential that Solana has. Also leading with active addresses in the last 24 hours, still Solana and by far they have over 8 million active addresses, while the second place which is Tron only has 2.
3 million, so that’s quite a significant difference. Looking at the 24 hours fees, Solana again takes the lead, overcoming titans like Ethereum and even Bitcoin. Although the Chain’s TVL has not yet achieved the all-time high back in 2021-2022, from the beginning of 2024 until now, we only saw the TVL rising. Right now, the TVL of the chain sits at 6.
2 billion, but back in 2022, the all-time high was roughly around 10 billion dollars. And potentially, on this bull run, a new all-time high can be set. Now these metrics change all the time after all it’s crypto so depending when you are watching the video things can differ but overall Solana keeps itself as one of the most top heavy chains where profits are to be made by yield farming.
So for that we’ll be taking a look at some of the most bullish protocols right now and ranked by TVL. The number one is JITO which is a liquid staking platform. TVL over 2.2 billion dollars. The time metrics for the TVL change are always on the green for the past day, week, or month and JITO being a liquid staking platform, it allows you to stake your Solana tokens and in return you get not only JITO SOL that keeps your assets liquid so you can go elsewhere and use it for other DeFi activities for example, but at the same time you are already earning an APY of 8% on your staking. The current Solana TVL here is
over 13 million dollars and holders are over 115 thousand. One of the things that makes JITO stand apart from all other liquid staking protocols is the fact that they claim to be the first MEVpowered staking pool. So when you take part on JITO, you are also helping Solana to run more efficiently and earn MEV rewards.
The JITO staking pool helps decentralize Solana, spreading stake across the network. And staking to JITO’s pool also encourages validators to redistribute MEV profits. validators to redistribute math profits so this can be a more conservative way with less risk but also the APRs or in this case 8% APY will be on the lower end also because you don’t face as much risk as with other options that we’ll touch upon later on the video so this is potentially an initial step you can choose to yield farm on deposit your your Solana tokens, help secure the blockchain, and as a return for you staking with them, you get the already mentioned APY.
return you receive JITO SOL keeping your assets liquid then the JICO stake pool delegates your SOL to MEV enabled validators those validators auction off block space and receive Mav rewards and then these Mav rewards are redistributed to the stake pool as extra APY where JITO SOL accrues Mav rewards in addition to staking rewards so the main difference between these and other liquid staking protocols that you can find in some Ethereum layer 2s is that those will pay you in the native currency of the blockchain the native token and in here with JITO Sol you get
Solana which is the native token of SolANA to pay you in order to reward you to be a staker but also on top of that you also get some MEV rewards so it’s a little bit different and that’s also why you can have currently an APY which is above for example what Ethereum offers what Ethereum offers. Another popular protocol on Solana to yield farm is Camino and it has a DVL of over 1.6 billion dollars.
It’s not just a borrowing and lending protocol. Borrowing and lending is actually one of the main opportunities to yield farm on Camino so you can do that obviously and everything is very well described so I think it’s overall very beginner friendly if you click here where it says how it works it’s going to be giving you a brief explanation of each opportunity to yield farm so this is the traditional borrow and lending but there’s others you can go on and be also a liquidity provider here on Kamino and if you go that route you can browse through their offers
there’s going to be different pools on different decks as you can see here on the decks tab there’s going to be pools on Orca, Meteora, Radium among others you can also filter the results using their predefined tabs so if you want to focus for example on stables you can do that it’s going to give you all the options with stable pairs which doesn’t mean singly stable coins but also other tokens that are pegged in price so you will not suffer impermanent loss although while giving a quick browse through the options here i can only see
stable coin pairs currently but if you like meme coins you can also have a filter for that so you go here and there’s only going to be pairs that have a meme coin in it aside from that you can multiply so this case it’s going to allow you to leverage your position and there’s different leverage that you can choose here from the list but i believe the maximum is 5x leverage and this is done with their system of yield looping if you want to know how it works again you can just click here on where it says how it works it’s going to give you again a brief explanation of the whole
process and also you can go on and select the long and short so this will allow you to easily increase your directional exposure with simple one-click leverage so you can even use this to hedge against your current position for example if you are liquidity farming here that’s probably going to be an option for more advanced users but it’s possible and you can protect yourself for market volatility and you can protect your current position by hedging against it which will allow you to focus just on yield wherever the market goes you’ll be protected one position will cancel
the other out but the yield you get that’s going to still be pure profit with all these options it’s no surprise that Camino he’s one of the most popular protocols on Solana with over 1.6 billion dollars in TVL then we have the first DEX here on the list which is Rad, the main DEX when it comes to TVL on Solana, although there’s many others, which we will not focus on in this video, but I’ll briefly mention.
Meteora is a good one, Orca, it’s also one of the main. Right now they’re out of the top 10, but usually Orca is one of the best ranking protocols, usually orca is one of the best ranking protocols and even if that is not the case currently when it comes to be in the top 10 it will definitely still get you a ton of volume for your liquidity pool positions so if you want to diversify your liquidity pools into dexes orca along with meteora and also radium are great options radium has a very high TVL over 1.5
billion dollars and if we look at the TVL of Radium it is pretty much mimicking what’s happening with the TVL on Chain on Solana. They had an all-time high of over 2 billions back in late 2021. Right now the TVL is going up again but it’s still not as high as the latest all-time high so there’s still potential for growth on this current ball run and on top of the most popular pools that you can use to farm the fees being generated by traders you can also search for some that are being incentivized by radium itself paying with their native token ray and that’s
the case with this specific pool here solana paired with bb soul two pegged assets no impermanent loss and heavily incentivized in rate tokens ranking fourth currently is jupiter with the tvl of over 1.4 billion dollars jupiter is a DEX aggregator on Solana. Being a DEX aggregator, the main proposition of Jupyter is to help users discover the best prices across multiple decentralized exchanges on the Solana network.
Some of its key features include limit orders and dollar cost averaging, but this is not a platform that only serves traders, since users can generate yield with Jupiter by participating as liquidity providers in the Jupiter Liquidity Provider Pool. And for that you need to come here on the Purpose tab and then click on the Earn button.
The pool currently has an APY of 28.8%. This pool is going to be used by traders that are looking to open leverage positions. If they do that, they will borrow tokens from this pool. And people who deposit into that pool, they will, of course, then allow traders to do just that and borrow from the assets they are depositing.
And then the pool generates fees from trading activities and 75% of these fees are then distributed back to liquidity providers. These fees are compounded into the pool every hour allowing liquidity providers to earn passive income. There’s only going to be five types of tokens as of now that you can use to deposit on this pool.
They’re all blue chips and or stable coins. So anything from Solana, Ethereum, Wrapped Bitcoin, USDC or USDT can be used to deposit into it. If we scroll down, you can see the current TVL of the pool, as well as the specific allocation on the TVL for each specific token that you can even see the pool size for each of these tokens to change by the second this gives you information in real time of the pool size for each token from the utilization column you can also get to see which token is being most used by traders so which one is being
borrowed the most from the pool so to sum it up when you deposit into the pool with any of these five different assets you then get glp tokens as a receipt for your share of the pool the pool in the meanwhile it’s going to be used by traders to leverage their positions, so they will borrow assets from the pool.
Then 75% of the trading activities fees are going to be accrued into the pool, that will increase your share over time, that’s the yield you are earning for being a depositor. And then of course you can use for example DEXs in order to deposit your GLP tokens into a specific liquidity pool and when you do that you are already stacking different yields from different protocols and there’s no locking period here with GLP pool so you can come here at any time return your GLP tokens in order to redeem your original deposit.
But since in the meanwhile you have been accruing yield in the shape of those mentioned fees, your original deposit has been increasing in number over time. That’s not even accounting for the potential appreciation of the asset. Then ranking fifth on the TVL ranks on Solana, we have Marinade. It’s another liquid staking protocol. It has over $1.3 billion in TVL.
Being a liquid staking protocol allows users to stake their Solana and receive AMSOLE, keeping your assets liquid. Marinade offers five key features. From all of those, no smart contract risk is the one that is the most important in my opinion, allowing users to avoid big risk in DeFi. They don’t rely on smart contracts by using a native staking approach.
This means that users do stick directly to validators without relying on smart contracts there’s also protect staking rewards allowing your staking rewards to be protected for a hundred percent of time instant and stake where users can instantly and stick their M solve convert it back to Solana so this is extremely flexible and then they also have other features like algorithmic rebalancing or stake auction marketplace that allows users to get the best staking rates.
Therefore it’s no wonder that they are one of the leading staking solutions, liquid staking solutions on Solana. They have plenty of security audits, decentralized governments, they are a DAO, and they also have an ongoing bounty program that will compensate anyone who reports security vulnerabilities.
They have also very competitive APYs with almost 8%, and when you stake with them, you get your tokens to remain liquid in the shape of msol that you can then again go on into other DeFi opportunities to generate extra yield with those tokens. Next on the list we have Sanctum which is another liquid staking protocol on Solana, they also have a TVL of over 1.
2 billion dollars so they are also in the billion dollar club and Sanctum is a very unique liquid staking protocol on solana their mission is to build a thriving liquid staking ecosystem there are four main functions with their app starting with their flagship product in the infinity pool you can deposit liquidity into it in exchange for the inf token the inf.
You can also use their trading section here to buy and sell any liquid staking tokens on Solana. So you can see here from the list there’s going to be a ton of them issued by different platforms and you can swap anything for another. And for example let’s say if you trade Solana for any of these liquid staking options that means that your Solana becomes staked and you start generating yield while keeping your assets liquid with the option that you chose to trade Solana for at the same time if you sell it and with it buy Solana back you are automatically also unstaking from that pool. Another unique
feature from Sanctum is the stake accounts tab here. You can get it from the drop down menu icon and the purpose of this tab is to make your life easy. So for example, if you are natively staking Solana, meaning directly staking Solana to a single validator. In that case, you will own a stake account. And you can come here with Sanctum.
It will show that you are an owner of a stake account, allowing you to instantly convert that account to liquid staking tokens. As you may know, you only get liquid staking tokens if you go and stake your Solana with those types of platforms. So the key differentiating factor here is for the users who already staked Solana directly with the validator.
That might be for more advanced users, but this makes their life easier because when they do that they don’t get liquid staking tokens in return so in other words their solana tokens that they did stake do not remain liquid but in that case if they want those assets to be liquid they can come here it will show up on their wallet that they do have a stake account and they can convert that to liquid staking tokens Keeping their assets liquid.
Also, you can use this stake accounts tab in order to unstake instantly So let’s say if you are a user and you have been staking your Solana into multiple Liquid staking protocols instead of going to each one of those individually to unstake you can rely here on Sanctum to unstake all of those from one place altogether so that’s why i mentioned before that this is meant to make your life easy on the LSTs tab you can get more information on all the liquid staking tokens that Sanctum does support and you can get even more information about each of those if you have some particular in mind that you’re looking for
you can use the search icon there’s going to be also their flagship one listed right up here on top so you see more information everything is on one place website twitter solana fm you can then go ahead and buy a specific lst here with solana and when you do that you start automatically earning yield because after all it’s a liquid staking token but they will all slightly differ and for example let’s go here on bonk sol this one has an api of eight percent There will be also other tiny differences that can
distinguish the tokens in between themselves. And for example, this is the BBSol, which is the liquid staking Solana token from Bybit. This one has a very high APY of 14%. So you can look at Sanctum as a marketplace for all the liquid staking tokens on Solana. It’s definitely a unique one and it also contributes with a lot of innovation to Solana’s ecosystem.
There’s a lot other protocols we could be covering here but for the sake of not making the video all that long I’m gonna stop here with the Sanctum, so we touched upon all the ones that have billion dollars in TVL right now, but still we are a bit over halfway through the top 10, so there’s definitely other protocols worth taking a look at, these are just some of the main ones, the most popular ones, so if you want me to cover some other protocol here for example not only also Alana but other yield farming opportunities on other chains let me
know in the comments if you have any questions or comments about any of the ones I did cover on the video also let me know and if you took value from this video like and subscribe I’m going to wrap this one up thank you for watching take care and I’ll see you on the next one
