Scott & Seinfeld’s Guardians of the Chains Vol. 2 - MVHQ

Scott & Seinfeld’s Guardians of the Chains Vol. 2

Scottco
Feb 9, 2024
Platform
General Strategy
Scott & Seinfeld’s Guardians of the Chains Vol. 2
DEXes
 
 
Drift is a dex that offers spot trading & perpetual futures. TVL is $60 million, up 3x since the Jito airdrop.
 
On Drift you have to first have to deposit assets (USDC, Sol, Jitosol) to begin trading. Since the Jito airdrop caused a wave of over 10k new accounts, Drift has added a 1.2 Sol rental fee to create a new account.
 
On Drift you can trade spot, do swaps or trade with leverage & volume traded will likely be a big factor in size of airdrop, similar to Jupiter. Since gas costs are minimal on Sol, one strategy after depositing / lending on Drift would be to do multiple swaps per week to generate volume.
 
You can also earn tickets for volume traded, which allow you to enter weekly prize pools. You’ll have to opt in one time to be eligible, and then you accrue 10 tickets per $1 of volume traded.
 
A common loop would be to first convert your sol into mSol, bSol, or Jitosol as they accept all 3 for deposits, lend on MarginFi - borrow a percentage of your holdings against that while maintaining good health % (I stay above 50% but your risk tolerance is up to you).
 
Take your borrowed capital into Drift & deposit to now farm two airdrops. Depositing on Drift is the equivalent of lending, so once you’ve deposited you’re able to borrow against that, if you would like to continue looping your capital for max farming on another protocol.
 
 
Jupiter is the most well known DEX on Sol. They have already taken their snapshot for their first airdrop but you can swap and build up volume for airdrop 2. The first airdrop will be 10% of the supply and the subsequent 3 airdrops will each release another 10% more Jup token. They also have a place to do perps, limit orders, as well as a super sharp DCA tool that lets you DCA from one coin into another in a set time period.
 
 
Phoenix is a fairly sparse DEX where you can swap Sol, Pyth, Bonk, and Jito for USDC. You can also swap Sol for Bonk or jSol. This is a good place to come and do some swaps with the money you borrowed as gas is essentially non-existent on Sol and you’ll be farming a potential air drop. WARNING There are some UI/UX issues that prevented me from being able to see some of the balances in my wallet as they seemed to be deposited on the DEX itself. This was resolved by trading the deposited Sol to USDC. Bit of a red flag so keep that in mind when swapping.
 
Liquid Staked Derivatives/Pools Meteora: https://www.meteora.ag/
 
Meteora provides yield infrastructure on Solana, offering highly capital-efficient AMM pools with a TVL of $14 million.
 
It's owned by the same team as JupiterExchange.
 
To farm Meteora you can deposit liquidity into their dynamic vaults (Sol or USDC) or you can deposit into their liquidity pools.
 
With a relatively low TVL Meteora is prob. one of the more underfarmed protocols on Sol.
 
Symmetry Finance: https://www.symmetry.fi/
 
Symmetry is a platform that has rebalancing index funds that hold various baskets of sol tokens. The tokens you buy represent the different baskets while the index acts as a liquidity provider to DEXes, earning fees for the index holders. It’s good for a hands off approach to farm a low TVL protocol (only $3.2 million locked).
 
Find Index of choice.
 
Mint baskets token for however much you’re comfortable with.

Look out next week for the finale of this series as we show how to degen loop some of these platforms for the optimal amount of gains!