In the fast-paced world of crypto, finding ways to make your Bitcoin work harder is a game-changer. Recently, DeFi enthusiast @FabianoSolana dropped a thread on X outlining a strategy to earn up to 28% APY on BTC through Solana-based protocols, plus snag two potential airdrops. If you're holding BTC and want to supercharge your returns without selling, this could be your ticket. Let's break it down step by step, keeping things simple and straightforward.

Why Earn APY on BTC via DeFi?

Bitcoin's supply is capped at 21 million coins, making it a scarce asset. Instead of just hodling, DeFi (decentralized finance) lets you lend, stake, or loop your BTC to earn yields. On Solana, known for its speed and low fees, projects like Loopscale and Fragmetric make this possible with wrapped versions of BTC. The thread highlights a leveraged strategy that amplifies returns but comes with risks like liquidation—always do your own research (DYOR).

Step 1: Get zBTC on Jupiter

Start by acquiring zBTC, a wrapped Bitcoin token on Solana. Head over to Jupiter, Solana's popular DEX aggregator, and swap your SOL or other assets for zBTC. This is your entry point into the ecosystem.

Step 2: Restake zBTC for fragBTC on Fragmetric

Next, visit Fragmetric and restake your zBTC to get fragBTC. This step alone offers a base APY of around 3.93%. Fragmetric is a restaking protocol that boosts yields by allowing you to earn points or rewards on staked assets. By doing this, you're positioning yourself for potential airdrops from Fragmetric.

Step 3: Choose Your Farming Path – RateX or Exponent

Now comes the decision: farm for RateX or Exponent tokens, both of which could lead to airdrops. These are yield optimization protocols that convert your fragBTC into principal tokens (PT-fragBTC) for higher returns.

• For RateX: Go to their "Earn" section and swap fragBTC for PT-fragBTC-2601. This trades some Frag points for better yields.

• For Exponent: In the "Income" section, swap fragBTC for PT-fragBTC. This gives up Frag points but bumps your APY to about 5.72%, with Exponent likely dropping an airdrop soon.

Pick based on what you're bullish on—Exponent currently edges out with higher APY.

Step 4: Loop It on Loopscale

Finally, take your PT-fragBTC to Loopscale (use referral code SAWc5 for potential perks). Search for fragBTC under "Loops" and select the PT version from your chosen protocol. Loop it up to maximize APY—up to 28% with leverage, but you can dial it back to 20% for lower risk.

Loopscale uses a looping mechanism, borrowing against your collateral to reinvest and compound yields. The health factor might look low (around 12%), but since both sides are BTC-pegged, depegging risks are minimal—though a 24% depeg could trigger liquidation at max leverage.

Risks and Considerations

While this setup sounds enticing, remember DeFi isn't risk-free. Leverage amplifies both gains and losses, and market volatility could lead to liquidation. Protocols like these are still emerging, so audit reports and community sentiment matter. Fabiano notes that even without max leverage, 20% APY on BTC is "phenomenal."

Wrapping Up

This Solana DeFi play turns your idle BTC into a yield machine, with bonuses from airdrops on Fragmetric, RateX, or Exponent. If you're in the meme token space, strategies like this can fund your next pump or provide steady income amid volatility. Stay updated on Solana's ecosystem for more gems—follow @FabianoSolana for DeFi tips. What's your go-to yield farm? Share in the comments!