Meme Insider
If you're diving into the world of cryptocurrency, you’ve probably heard about the exciting opportunities to earn yields on your assets. One recent tweet from Cheryl Chan (@cheryldchan) on July 23, 2025, caught the attention of many in the crypto community. She shared a clever strategy to earn up to a 4% BTC yield on the Solana blockchain using a combination of xBTC, Kamino, and the stablecoin USDG. Let’s break it down step-by-step so you can understand how to get started and why this might be worth your time.
What’s the Buzz About?
The tweet outlines a multi-step process that leverages DeFi (decentralized finance) tools to generate a solid return on your Bitcoin. With a 50% Loan-to-Value (LTV) ratio—basically, how much you can borrow against your crypto—this strategy promises a total yield of 3.9% on your xBTC. For those unfamiliar, LTV is a key metric in crypto lending that determines how much you can borrow based on the value of your collateral. A 50% LTV means you’re borrowing half the value of your deposited asset, balancing risk and reward.
Step-by-Step Guide to Earn That 4% Yield
Here’s how you can follow Cheryl’s strategy:
Get xBTC: Start by acquiring xBTC, a wrapped version of Bitcoin available on Solana. You can swap for it using Kamino’s swap feature. This step bridges your BTC into the Solana ecosystem, making it compatible with DeFi protocols.
Deposit xBTC into Kamino: Once you have xBTC, deposit it into Kamino to earn an initial +0.23% yield. Kamino is a DeFi platform on Solana that offers lending and borrowing services, and this small yield is just the beginning.
Borrow USDG with Incentives: Next, borrow USDG, a stablecoin pegged to the U.S. dollar, from Kamino. The cool part? You’re actually getting paid to borrow it due to incentives. Cheryl notes a net +0.85% yield here, calculated by subtracting a 9.86% borrow rate from a whopping 10.71% USDG incentive. This incentive structure is unique to USDG on Solana and encourages users to participate.
Deposit USDG into Steakhouse Vault: Finally, put your borrowed USDG into Kamino’s Steakhouse Vault, which offers a juicy +6.51% APY (annual percentage yield). This vault likely uses strategies like liquidity provision or staking to generate returns, boosting your overall yield.
The Math Behind the 3.9% Yield
So, how does this all add up to a 3.9% yield on your xBTC? The total yield comes from combining the small 0.23% from depositing xBTC, the 0.85% net gain from borrowing USDG, and the 6.51% from the Steakhouse Vault. After accounting for the 50% LTV and the costs of borrowing, the strategy nets you that attractive 3.9% return. It’s a layered approach that maximizes every move you make with your assets.
Why This Matters for Meme Token Enthusiasts
At Meme Insider, we’re all about exploring the wild world of meme tokens and blockchain innovations. While this strategy doesn’t directly involve meme coins, it showcases the power of DeFi on Solana—a blockchain known for its speed and low costs, which also hosts many meme token projects. Understanding yield farming like this can give you an edge when experimenting with newer, riskier tokens. Plus, the USDG incentives highlight how stablecoins are evolving, potentially influencing meme token ecosystems in the future.
Things to Watch Out For
Before jumping in, keep these points in mind:
- Risks: Borrowing against your crypto (LTV) comes with risks. If the value of xBTC drops, you might face liquidation. Always monitor market conditions.
- Incentives Can Change: The 10.71% USDG incentive isn’t guaranteed forever. Check Kamino or Global Dollar for updates.
- Gas Fees: Even on Solana, transactions have costs. Ensure your yield outweighs these fees.
Final Thoughts
Cheryl’s tweet is a goldmine for anyone looking to dip their toes into DeFi yield farming on Solana. With a clear 3.9% yield potential, it’s an enticing option for BTC holders willing to navigate the steps. Whether you’re a seasoned crypto pro or just curious, this strategy offers a practical way to put your assets to work. Head over to Kamino and Global Dollar to start exploring, and let us know how it goes at Meme Insider!
Ready to try it out? Share your thoughts or questions in the comments below—we’d love to hear from you!
