In the fast-paced world of Solana DeFi, where meme tokens can swing wildly, capturing fees during market dips can turn volatility into profit. A recent thread from @MidCrvCapital on X outlines a clever strategy using Jupiter Exchange lending and HawkFi automations to do just that. Let's break it down step by step, explaining the key concepts along the way for anyone new to the space.

Getting Started with Jupiter Lend

The strategy kicks off on Jupiter Lend, a decentralized lending platform on Solana. Here, you deposit $JupSOL—a liquid staking token that represents staked SOL earning rewards—at around 7.7% APY (annual percentage yield). APY is basically the rate of return you can expect over a year, including compounding.

Next, borrow $USDG at a low 2% borrow rate. USDG is a stablecoin variant, which you then swap to $USDC (another stablecoin) via Jupiter's mobile app. This sets you up with borrowed funds while earning on your deposit, creating a leveraged position.

Farming Fees with Meteora and HawkFi

With your USDC in hand, head over to Meteora AG for DLMM (Dynamic Liquidity Market Maker) farming. DLMM is an advanced liquidity providing mechanism that allows for more efficient trading pools compared to traditional AMMs.

To supercharge this, use HawkFi, which offers automations to keep your liquidity position optimized. The thread highlights impressive metrics from a less-than-24-hour period: a +6.66% gain from LP (liquidity providing) fees, versus a -1.69% loss if just holding SOL. This shows how active management can outperform passive holding in choppy markets—perfect for the meme token volatility on Solana.

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