Meme Insider
In the fast-paced world of Solana DeFi, new opportunities pop up almost daily, and this one from @jussy_world on X is a game-changer. The tweet highlights the launch of Exponent's PT-eUSX on Kamino Finance, opening the door to a high-yield farming strategy on Solstice Finance that could net you up to 70% APY with leverage. If you're into yield farming or hunting for those juicy airdrops, this looping strategy is worth a look. Let's break it down step by step.
Understanding the Core Elements
Before jumping into the strategy, here's a quick rundown of the key players involved. Solstice Finance is a Solana-based protocol offering institutional-grade yields through its permissionless lending markets. Their flagship stablecoin, USX, is fully collateralized and pegged to the US dollar. When you lock USX into Solstice's YieldVault, you receive eUSX—a yield-bearing version that represents your share of the underlying assets earning passive returns.
Exponent Protocol, on the other hand, is a yield exchange on Solana that lets you trade fixed-rate yields using Principal Tokens (PTs). These PTs lock in a fixed APY for a set period, like PT-eUSX-11MAR26, which matures on March 11, 2026. Kamino Finance acts as the liquidity and lending layer, enabling automated strategies like borrowing and looping to amplify your yields.
Together, these protocols create a powerful combo for leveraged farming while earning Flares points—Solstice's reward system that could lead to future airdrops.
The Step-by-Step Farming Strategy
According to the thread, here's how to maximize your returns with up to 5x leverage for around 70% APY:
Deposit into Exponent: Start by depositing your eUSX or USX into Exponent to receive PT-eUSX. This gives you a fixed yield of about 17-18% APY, locking in predictable returns until maturity.
Supply on Kamino: Take your PT-eUSX and supply it to the Solstice market on Kamino. This acts as collateral in the lending pool, where you can earn additional yields from the protocol.
Borrow USX: Against your supplied PT-eUSX, borrow USX at a low interest rate of around 3-4%. Kamino's Multiply feature automates this, making looping seamless.
Loop and Repeat: Use the borrowed USX to deposit back into Exponent for more PT-eUSX, then repeat the process. The max leverage is 5x, boosting your effective APY to 70% while keeping risks in check through over-collateralization.
By borrowing USX, you also rack up Flares points, adding potential airdrop value on top of the yields. It's a delta-neutral approach, meaning it aims to minimize exposure to market volatility—perfect for stablecoin holders.
Why This Matters for DeFi Enthusiasts
This integration isn't just about high APYs; it's a sign of Solana's DeFi ecosystem maturing. With low fees and fast transactions, strategies like this make yield farming accessible without the gas wars of other chains. Plus, as meme tokens and DeFi projects on Solana continue to boom, having stable, high-yield options like this helps practitioners park their gains safely while compounding returns.
That said, remember the risks: Leverage amplifies both gains and losses, and while these protocols are audited, DeFi always carries smart contract vulnerabilities or liquidation risks if collateral values dip. Always DYOR and start small.
For the full thread and real-time updates, check out the original post here. If you're ready to dive in, head over to Kamino or Solstice and get looping—happy farming!
