Top Solana Protocols for Passive Stablecoin Income, Part 1

Stablecoins are in the spotlight. The Genius Act is coming up anytime. It already passed in the Senate and is now waiting to be approved in the House. Once approved, President Trump will most likely sign it off quickly as a law. So, what can you do with your stablecoins? What are good options to get passive stablecoin income? 

In this article, I will look at some of the best passive stablecoin income options on Solana. This is Part 1 of a 2-part series.

Passive Stablecoin Income on Solana

Solana offers plenty of different passive stablecoin income options. Here are a couple of the current best available options.

Lending on Loopscale

You can earn 8.16% on the $USDC Genesis vault on Loopscale. This is good yield for a stablecoin. The vault has a $10 million limit and currently almost $7.5 million are already supplied. So, here’s a guide.

• Visit the Loopscale app and connect your Solana wallet.
• Go to the ‘Lend‘ section.
• Locate the $USDC Genesis vault. 
• Add your selected number of $USDC to the vault. 
• Approve the transaction in your wallet.
• Straight away, your funds start accruing interest

The risk. Loopscale $USDC vaults were hacked two weeks after they launched in early April. This was to the tune of $5.8 million, or 12% of its TVL at the time being. In turn, withdrawals and new deposits were temporarily halted.

Source: Loopscale

Neutral Trade Hyper JLP Vaults

Trade Neutral has its Hyper JLP vault. Trade Neutral offers various high-yield strategies. It does this by hedging $JLP (Jupiter Liquidity Provider) exposure. APY in this vault can go as high as 50%. So, this is a great passive stablecoin income strategy. It works by swapping $USDC into $JLP. However, it uses the $JLP now as collateral and opens short positions with it. This is the hedge to cover market risks.

• Visit the Trade Neutral app.
• Under ‘Strategies’ find the Hyper JLP vault.
• Deposit your $USDC into the Hyper JLP vault.
• The platform takes over and manages the conversion and hedging.
• It generates yield from trading fees, staking rewards, and funding rates.
• You can withdraw at any time. However, always check the platform-specific terms.

The risk. There’s an increased risk with high yields. Market volatility plays a role, and also smart contract risks. You can reduce the risk with a hedge strategy. However, this doesn’t eliminate the risk.

Source: Trade Neutral

RateX Yield Farming

With RateX you can take part in yield farming. You do this with their synthetic stablecoins $USD*. Currently, RateX also has an extra $10,000 incentive. As a result, yields are above 16%. Furthermore, you can farm points on various protocols. This can get you in a better position for some potential airdrops.

• Go to the RateX app.
• Provide liquidity with USD* on RateX.
• Stake your LP tokens to earn both yield and points.
• As an advanced strategy, you can use PT-$fragSOL. This gives a potential APY of up to 26% APY. Find out more about PT in this article.
• Regularly monitor and adjust your positions for optimal rewards.

The risk. These are cross-protocol strategies and thus have more risks. Synthetic assets also bring extra risk because they can depeg. There’s also the smart contract exploit risk.

Source: RateX

Conclusion

This is Part 1 of a 2-part series about passive stablecoin income strategies on Solana. We covered 3 strategies. Furthermore, we look at the risks for each strategy. We discuss more strategies in Part 2.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.

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