In the fast-paced world of Solana DeFi, where meme tokens rise and fall like viral trends, optimizing your base holdings can make all the difference. A recent tweet from @FabianoSolana has sparked conversations among crypto enthusiasts, calling out anyone just sitting on spot SOL as, well, missing out big time. Let's dive into what this is all about and why it might be a game-changer for your portfolio.

The Viral Tweet That's Shaking Up Solana Holders

The tweet in question, posted on September 26, 2025, bluntly states: "If you're holding spot SOL you're actually kind of retarded (sorry for my words). You can loop mSOL on Loopscale with 44% APY. LSTs like mSOL have no liquidation risk + you farm loopscale points." Accompanied by a screenshot showing impressive stats – deposits at $1.166M and an average net APY of 44.88% – it's no wonder it garnered over 2,000 views and plenty of engagement.

You can check out the original tweet here for the full context and replies.

Breaking Down the Strategy: What Is mSOL and Looping?

For those new to this, mSOL is a liquid staking token (LST) from Marinade Finance, a popular protocol on Solana. When you stake your SOL through Marinade, you get mSOL in return, which represents your staked SOL plus any rewards. The beauty? It stays liquid, meaning you can use it in other DeFi apps without locking up your assets.

Now, "looping" on Loopscale takes this to the next level. Loopscale is a modular lending platform built on Solana, using an order book model for efficient borrowing and lending. The strategy involves using your mSOL as collateral to borrow SOL, then converting that borrowed SOL back into mSOL, and repeating the process. This creates a leveraged position that amplifies your yields.

The claimed 44% APY comes from stacking staking rewards, lending yields, and possibly protocol incentives like Loopscale points. And the "no liquidation risk" part? Since mSOL closely tracks SOL's price (as it's backed by staked SOL), the collateral value moves in tandem with the borrowed asset, reducing the chance of getting liquidated in volatile markets – unlike looping uncorrelated assets.

Why This Matters for Meme Token Enthusiasts

At Meme Insider, we're all about the wild world of meme tokens on chains like Solana, where projects like Pump.fun churn out hits daily. But to play the meme game effectively, you need liquid capital. By looping your SOL into mSOL on Loopscale, you're essentially earning passive income on your base holdings, which can fund those high-risk, high-reward meme bets without selling your SOL stack.

Imagine earning 44% APY while your mSOL position grows, then using those gains to ape into the next viral cat or dog token. It's a way to hedge against opportunity costs in a ecosystem where FOMO hits hard.

Risks to Consider: Not All Sunshine and High Yields

Of course, no DeFi strategy is risk-free. Loopscale, despite its innovative order book lending, suffered a $5.8 million exploit back in April 2025, shortly after launch, due to an issue in one of its markets. While the team has likely patched things up by now, it highlights the smart contract risks inherent in DeFi.

Additionally, while liquidation risk is low for this specific loop, broader market downturns, oracle failures, or changes in staking rewards could impact returns. Always do your own research (DYOR) and consider impermanent loss or protocol-specific fees.

Final Thoughts: Time to Level Up Your SOL Game?

If you're knee-deep in Solana memes but leaving your SOL idle, this tweet might be the wake-up call you need. Looping mSOL on Loopscale offers a compelling way to boost yields in a low-risk manner, freeing up resources for more adventurous plays. Just remember, crypto moves fast – stay informed and manage your risks.

This isn't financial advice; consult professionals and use tools like Solana Explorer to verify on-chain data. What's your take? Have you tried this strategy? Drop your thoughts in the comments!