SOL Super Drift Staking
We all know Solana is a game-changer, but what if you could take it a step further? Imagine earning a solid 30% APY just by staking your Solana with us in the SOL Super Drift Staking.
Curious about how we generate that impressive yield? Let’s break it down.
Explanation of the SOL Super Drift Staking
The SOL Super Drift Staking stands as a foundational cornerstone for enhancing economic security on Solana and liquidity on Jupiter Perp DEX.
We acquire JLP and hedge the BTC and ETH exposure, while recreating the full 100% SOL exposure through dSOL and SOL perps.
Where does the yield come from?
Let’s explore the key sources of yield for the staking vault:
- JLP fees — 28.04% APY as of 10/15/2024 (75% of trading fees, borrowing fees, mint / burn fees, liquidation fees from traders trading on Jupiter Perp DEX)
- dSOL staking, earning Solana’s inflation rewards, priority fees, and MEV opportunities — 8.63% APY as of 10/15/2024
- Funding fees from Perpetual Shorts on ETH and BTC (Longs usually pay shorts perps funding) — ~18% APY and ~24% APY respectively on ETH and BTC
This strategy allows you to maintain 100% pure Solana exposure while earning an impressive 30% APY Real Yield on your SOL.
Stakers will also unlock 5X more FUEL rewards, supercharging their earnings potential and maximizing the value of their commitment.
It’s a powerful solution for maximizing yield while staying aligned with Solana’s ecosystem, supporting the economic security of Solana while providing liquidity to Jupiter and Drift.
What is dSOL?
dSOL (Drift SOL) is a tokenized version of staked Solana (LST) on Drift DEX. As a staker, you earn yield from multiple sources: Solana’s inflation rewards, priority fees, and MEV opportunities.
If you’re familiar with JitoSOL, think of dSOL as its direct counterpart, but designed specifically by Drift DEX.
More info about what is LST:
https://www.bitcoin.com/get-started/what-is-a-liquid-staking-token/
At the time of writing, the APY for dSOL sits at a competitive 8.63%.
What is pyUSD?
PYUSD is a stablecoin developed by PayPal, offering complete safety and transparency. We prioritize its use in our strategies because its borrowing fee is approximately half that of USDC. This translates to greater savings for vault depositors, ultimately boosting overall yield.
Traditional SOL staking options
- JitoSOL yield loop on Kamino (Depeg risks) — 13.19% APY
- Pure staking on JitoSOL, JupSOL, dSOL — ~8% APY
- SOL lending — ~4% APY
The SOL Super Drift Staking sets itself apart from the competition, offering a unique approach to maximizing returns.
Performance and management fees
Sol Super Drift Staking:
- 25% performance fee on profits generated by our strategy.
Fees are applied either monthly or at the time of withdrawal from the vault.
Lock Up Period & Withdrawals
Deposited funds are subject to a 1-day soft lock period. Due to the nature of the strategy, manual adjustments may be required to facilitate withdrawals in an orderly manner.
Withdrawal requests may be submitted at any time. Funds will be available for withdrawal after the soft lock period ends.
What are the risks compared to the original JLPDN vault?
In addition to the risks outlined in this article, we want to emphasize that depositors are fully exposed to SOL’s market performance. This means you have the potential to capture both upside gains and downside losses depending on SOL’s price movements.
Q: Can I get liquidated in the SOL Super Drift Staking?
A: No, liquidation is not a concern. Our quants and traders proactively manage risk by converting all assets to SOL if the health factor drops below a certain threshold, ensuring protection for your position.
Q: How does this staking vault differ from the main JLP Delta Neutral strategy on your dApp? Wouldn’t it be better to deposit there?
A: This vault offers 100% pure Solana exposure. Essentially, it’s like holding Solana — just with added yield.
Q: Can the amount of SOL I initially deposited decrease?
A: In the short term, fees may not fully cover the initial trading costs to open positions. Over the long term, you’ll consistently generate profit.
Deposit here:
https://www.neutral.trade/Program CA (Owned by Drift Team): vAuLTsyrvSfZRuRB3XgvkPwNGgYSs9YRYymVebLKoxR
Authority:
EuSLjg23BrtwYAk1t4TFe5ArYSXCVXLBqrHRBfWQiTeJTrack our trades on Drift:
https://app.drift.trade/?authority=EuSLjg23BrtwYAk1t4TFe5ArYSXCVXLBqrHRBfWQiTeJ
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