🚀 Solana (SOL) is shining bright in 2023, outpacing Bitcoin (BTC) and Ethereum (ETH)! For those holding SOL, there are exciting ways to earn extra yield while staying invested in this rapidly growing asset. Let's dive into how you can maximize your SOL returns with low-risk options like staking and advanced strategies like leveraging liquid staking tokens (LSTs).

💡 Staking SOL is a simple way to earn passive income and secure the Solana network. By staking with liquid solutions, you get tokens like jitoSOL and mSOL, offering ~7-8% APY. These tokens can be used as collateral in Solana money markets, allowing you to maximize yields through looping strategies.

🔄 Looping involves staking SOL, receiving LSTs, using them as collateral, borrowing more SOL, converting it into additional LSTs, and repeating the process. This can significantly boost returns but comes with liquidation risks if the LST depegs from SOL.

Kamino Multiply simplifies this process, automating yield multiplication. For example, with JupSOL, you can earn up to 16.4% APY by looping five times at 80% loan-to-value (LTV). However, higher leverage increases liquidation risks.

📊 Here's a quick risk breakdown:

- 5x leverage: Liquidation if JupSOL depegs >11%

- 4x leverage: Liquidation if JupSOL depegs >16%

- 3x leverage: Liquidation if JupSOL depegs >25%

- 2x leverage: Liquidation if JupSOL depegs >44%

In conclusion, SOL staking offers attractive returns, especially with LSTs and money markets. While looping can boost APY, be cautious of liquidation risks. Automated solutions like Kamino Multiply can help manage these efficiently.

What do you think about these strategies? Share your thoughts in the comments! 🌟