Overview of Solana Ecosystem Potential DeFi Nested Yield Strategies

Written by: Joyce, BlockBeats

Recently, the steadily rising token price of Solana has attracted the attention of the community. On November 15, SOL rose back above $60 and continued to climb, reaching a price of $65 at the time of writing, with an increase of over 45% in the past week.

In addition to the overall market recovery, another important factor driving the rise in SOL prices is the upcoming airdrop information from JupiterExchange on Solana. Users can earn token points on Jupiter by interacting with DeFi protocols and trading platforms such as marginfi, Kamino, DriftProtocol, and Jito on Solana, each of which also has its own points program. As a result, Solana has attracted a significant amount of liquidity from the community.

BlockBeats has compiled profitable trading strategies available on Solana based on the analysis of overseas KOL Ayle (@alpha_pls) as follows:

Jito

Jito is a liquidity staking service on Solana that allocates maximum extractable value (MEV) rewards to holders. The Jito staking pool allows users to stake their Solana tokens in exchange for liquidity pool tokens (JitoSOL). JitoSOL tokens provide liquidity while earning staking rewards and MEV rewards.

Points & Airdrop Situation (Airdrop time not yet announced)

Starting from January 1, 2023, each JitoSOL in the user's wallet accumulates 1 point per day. Trading on supported DEXs earns double points. For more information, see Introducing Jito Points: Powering the Jito Ecosystem

Operation Steps

Go to the Jito Staking Interface, connect your Solana wallet, and enter the amount of SOL you want to stake to receive JitoSOL.

marginfi

Marginfi is a decentralized lending protocol on Solana, equipped with real-time risk management and automatic liquidation, providing a secure and reliable solution for users seeking leverage and maximizing capital efficiency. Marginfi can also combine with third-party protocols both downstream and upstream, allowing users to unify their on-chain portfolios and access a wide range of decentralized finance (DeFi) services.

Points & Airdrop Situation (Airdrop time not yet announced)

By depositing JitoSOL into marginfi, users can earn 1.5 times JitoSOL points as well as marginfi points; borrowing mSOL on marginfi earns 4 times marginfi points. For more information, see Introducing mrgn points.

Operation Steps

Go to the marginfi homepage, register an account via email, and enter the interface after verification. The interface will prompt, "marginfi uses the Solana network and requires SOL to pay network fees. Users must hold a Solana balance in their wallet to use this network (starting with a recommended SOL value of $5)." Users can transfer funds to the margin wallet or directly use MoonPay to purchase SOL.

It can be seen that the deposit limit for JitoSOL is 750k, which is currently full. This is the amount after marginfi officially raised the limit on November 11. Users can follow the official Twitter account or the Discord community for the latest updates.

Then, borrow mSOL on marginfi to earn 4 times marginfi points; as of the time of writing, about 67% of the mSOL supply is still available for borrowing.

Jupiter

Jupiter is a DEX aggregator/one-stop DeFi shop on Solana.

Points & Airdrop Situation (First round airdrop time announced, waiting for the next round)

Jupiter today announced the airdrop details, with 40% of $JUP to be distributed to the community through 4 rounds of airdrops. The first round will allocate 10% of the tokens (1 billion), with 955,000 wallets that interacted with Jupiter before November 2 eligible for the airdrop. Users can wait for the next airdrop aimed at new users. More information about $JUP can be found in the Jupiter Green Paper

Operation Steps

After borrowing mSOL, go to Jupiter, connect your wallet (note that SOL is needed for gas fees), and exchange mSOL for JitoSol.

Kamino

Kamino is an automated liquidity solution built on DEXs that run concentrated liquidity market makers (CLMM). Liquidity providers (LP) seeking to improve capital efficiency can leverage Kamino's automated market-making vaults to enhance expected returns from fees and rewards.

Points & Airdrop Situation (Kamino V2 in beta testing)

Currently, Kamino has not released points information, but users can earn JITO points on Kamino.

Operation Steps

You can deposit half of your JitoSol into Kamino to earn more $JITO points. Go to the homepage, select a trading pair with JitoSol, and deposit JitoSol.

Drift

Drift Protocol is a decentralized derivatives trading platform on Solana.

Points & Airdrop Situation (Incentive activities ongoing, no airdrop plan yet)

Drift is currently conducting the Drift Draw lottery event, where users trading on Drift can qualify for the lottery, with a prize pool exceeding 50K. More information can be found in Drift Draw.

Operation Steps

Deposit the other half of JitoSol into DriftProtocol to earn more $Jito, go to the lend/borrow interface, connect your wallet, and select JitoSol.

Additionally, if you want to gain more lottery qualifications, you can trade perpetual contracts in the trading interface.

ZetaMarkets

Zeta Markets is a distributed platform based on Solana that facilitates liquidity, non-custodial, and under-collateralized derivatives trading.

Points & Airdrop Situation (Points activity season ongoing, no airdrop plan yet)

ZetaMarket launched Z-SCORE on October 26, and from the launch date until December 20, users will earn 1 Z-SCORE point for every $1 traded.

Additionally, from November 13 to 17, points earned by users will be doubled. For specific rules, see the official announcement.

Operation Steps

To earn Z-SCORE, users can deposit USDC in the trading interface and trade perpetual contracts.