If you're a SOL holder looking to maximize passive income, you might remember the buzz around covered call vaults promising around 15% APY. But what if I told you there's a new kid on the block delivering up to 3% daily yields—that's a whopping 1,095% APY? Enter HawkFi's high-frequency liquidity approach, which is essentially turbo-charged covered calls with better risk management. This thread from Bradydon, co-founder of HawkFi, breaks it down, and it's a game-changer for DeFi enthusiasts and meme token traders on Solana.

Bradydon kicks off by addressing SOL passive income maxis, highlighting the shift from traditional 15% APY covered calls to this new method. Covered calls, for the uninitiated, involve holding an asset like SOL and selling call options on it to earn premiums, but they cap your upside if the price moons. HawkFi's version uses dynamic liquidity provision (LP) on platforms like Meteora, Orca, and Raydium—key DEXes where meme tokens thrive—to generate fees at a much higher rate, all while keeping risks in check.

What's New with HawkFi?

The thread dives into what HawkFi enables that wasn't possible before. It's all about moving from static, locked-up options vaults to dynamic, self-custodial LP automations.

Before, you had static positions with diluted yields and funds locked for over 14 days. Now, with HawkFi, positions adjust in real-time for concentrated yields, and you can deposit or withdraw anytime. This flexibility is huge for volatile markets like Solana's meme token scene, where quick moves can make or break profits.

The Status Quo: Covered Calls Explained

Bradydon outlines the pros and cons of traditional covered calls:

• Generates over 15% APY from fees in neutral or slightly bullish positions.
• But limits upside when the token pumps.
• And exposes you to unlimited downside if it dumps.

This graph illustrates it perfectly: profits are capped at the strike price, but losses can pile up as prices fall.

Next-Gen: SOL Stacking with High-Frequency LP

Here's where it gets exciting. HawkFi's "SOL Stacking" uses concentrated high-frequency LP for 3-7% daily yields in similar market conditions.

• Unlimited upside if you set a take-profit (TP) to SOL when the price hits resistance.
• Limited downside with a stop-loss (SL) at support levels.

Unlike covered calls, this setup lets you ride pumps without caps and protects against dumps, making it ideal for Solana's fast-paced ecosystem.

PnL and Rebalances: The Double-Edged Sword

Rebalances are key in this strategy. They amplify gains when price and volume trend up but can magnify losses if they trend down.

The beauty? You're in control. Customize rebalances, TP, and SL based on your market expectations. No more being locked into 14-day vaults—you call the shots.

HawkFi Cheatsheet for SOL Stacking

Bradydon wraps up with a handy cheatsheet:

• Auto-claim SOL rewards.
• Rebalance every 0-30 minutes.
• Use swap or swapless rebalances.
• Set TP to SOL at expected resistance or breakout.
• Place SL at support.
• Wild card: Ping pong liquidity trades for extra edge.

And to drive the point home, there's a fun clip emphasizing the money-making potential.

This approach isn't just for SOL; it applies to providing liquidity for meme tokens on Solana DEXes, where high volumes can supercharge fees. If you're into DeFi yield farming or trading memes, HawkFi (hawkfi.ag) could be your next tool. Check out the full thread on X for more insights, and always DYOR—yields this high come with risks!