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I will show you how to Stake Solana on Marinade Finance and Synthetify to Earn 84% APY. It is combine strategy.
What is Marinade Finance?
Marinade Finance is a non-custodial liquid staking protocol built on Solana. You can stake your SOL tokens with Marinade using automated staking strategies and receive "marinated SOL" tokens (mSOL) that you can use in decentralized finance (DeFi). The price of mSOL goes up relative to SOL each epoch with rewards being accrued into the underlying staked SOL. You can withdraw your SOL at any time by unstaking and waiting for the unlock period (1-2 epochs) or immediately with a small fee 0.3% - 3%. Marinade does not charge any fee to deposit your SOL. Marinade does not charge any fee for unstaking provided a user waits 1-2 epochs by using the delayed unstake feature. Marinade offers you the possibility to stake your SOL in exchange for mSOL that you can use in DeFi while still enjoying the staking rewards.
Marinade Finance to Stake Solana for mSOL
First you need to Stake Solana in Marinade Finance to Earn mSOL. Go to marinade.finance and click on staking tab. Connect you Solana wallet such as Solfare, Exodus, Bitkeep, Walletconnect, Strike, BackPack, Slope, Brave, COINBASE Wallet, SafePal, XDefi, Mathwallet, Coin98, Sollet, or Glow wallet. In my example I will be connecting my Phantom Wallet. After I connected my Phantom wallet to Marinade Finance, I got into the Stake tab. I am going to stake SOL to generate mSOL. Remember mSOL is Marinade Finance staked Sol. As of shooting this video, 1 mSOL approximately 1.07275 SOL. The staking APY is 6.79%.
Staking mSOL in Synthetify to Earn 80% APY
Go to Synthetify.io and click on Staking Tab. I staked 9.7 mSOL. As of shooting this video it is worth $322. My liquidation threshold is $225. I was only allowed to Mint $203. I was able to mint $203 worth of xUSD. You can go to Swapline tab on the top and convert xUSD into USDC. Swapline charges 1% fee. Then I go to Solana Dex like Radium.io and swap the USDC into SOL to buy more Sol or directly mSOL. Then you can deposit it back and borrow more xUSD. This is looping. Just watch out for your liquidation threshold.
Synthetify MINTing xUSD
Next, I am going to use Synthetify a Decentralized synthetic assets exchange built on Solana. Here is where I am going to stake my mSol. I staked 9.7 mSOL. As of shooting this video it is worth $322. My liquidation threshold is $225. I was only allowed to Mint $203. I went to the MINT tab. Click Max. In this case it is $203. Pay gas with Sol in my Phantom wallet. It automatically sent $203 worth of xUSD at 1xUSD equals 1USDC. I was able to mint $203 worth of xUSD. Go to the synthetic tab. I see under synthetic assests $203 worth of xUSD. Remember under Debt status, Current value of your debt proportionally to the global debt. Max borrow represents mint threshold. Value at the end of the bar is your liquidation threshold - if your debt increases beyond this value, your position can be liquidated. Debt is subject to interest rate of 1% that is compounded daily.
Synthetify Repay xUSD
If you want to repay your xUSD or other systentic tokens go to the Repay tab on the middle of the screen. I see my available xUSD 203 to repay. Click Max. Click Repay. Now it asks me "Are you sure you want to repay 203 xUSD? It may cause losing your reward of SNY." It say I have 40 hours left to claim my rewards. It asks do you confirm the action? I clicked cancel because I wanted to claim the rewards in 40 hours. Without MNDE token rewards you will only get paid 5.67% APY just for staking.
Synthetify Rewards Summary
Remember, on Synthetify only pays 30% APY only if you MINT in other words borrow xUSD with mSOL as collateral. After MINTing xUSD from mSOL as collateral, you get following rewards: 5.67% APY for depositing mSOl, 0.65% APY for MNDE, and 18.97% LIDO staking rewards. All MINTing needs to be there for 1 week to be able to claim rewards. Here are the detail explanation of Rewards APYs.
APY: 5.67
Average Apy based on total Debt value.
Average MNDE APY
According to screen, 0.65% Average MNDE APY means, to receive MNDE tokens, you need to have deposited mSOL and minted debt. Tokens are distributed once a week. Snapshots are taken once a day to determine, how much tokens you would receive.
Average Lido APY
According to screen, 18.97% Average LIDO APY means, to receive Lido tokens, you need to have deposited stSOL and minted debt. Tokens are distributed once a week. Snapshots are taken once a day to determine, how much tokens you would receive.
Synthetify Risk rewards
There is always risk that your mSOL will be liquidated if your MINT debt reaches the liquidation threshold. I would keep a large buffer. I should not hav borrowed $203. I should play safe and only borrowed or minted like $100 xUSD. There is also smart contract exploit risk on new platform like Synthetify. There were many Solana protocol exploits as of shooting this videos on other platform, so do your on risk assestment before apeing in lots of life saving money. Also, there is risk that Marinade Finance's mSOL could depegged from Solana just like the terra UST that depegged from US dollar. On the rewards side, I like the fact I can make 30% APY on staking Solana with some risks. I am not planning on holding reward tokens like Marinade token MNDE for the long term. I will be selling as soon as I get to claim it in a weeks time. Same thing for SNY token. I will be selling those rewards tokens and buy more Solana because I am bullish for the long term.
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