sSOL in DeFi
Last updated
Last updated
There are various ways of utilizing sSOL and earning maximum yield as an sSOL holder. You can delegate to dApps to bootstrap network bandwidth or participate in DeFi strategies to earn additional APY, starting with our launch partners.
Orca utilizes a Concentrated Liquidity Automated Market Maker (CLAMM) to enhance capital efficiency and yield for liquidity providers. By providing liquidity to Orca's pools, users can earn yield on their crypto assets through trading fees.
When you provide liquidity to an Orca pool, such as the sSOL-SOL pair, you earn fees from each token swap within that pool. This means if you deposit sSOL and SOL into the pool, any trades that occur between these tokens will generate fees, which are distributed to you as a liquidity provider. Orca automates this process, ensuring optimal capital efficiency and low slippage.
LP Example
Situation: You have 100 sSOL worth $10,000 USD. You want to earn yield on your assets without active management.
Use Case: Deposit your sSOL and an equivalent amount of SOL into an Orca CLAMM pool. Your sSOL and SOL will provide liquidity to the DEX, earning fees from trading volume. Orca’s advanced CLAMM technology will ensure that your assets are utilized efficiently, maximizing your returns.
Benefit: Earn yield passively from trading fees while maintaining exposure to both sSOL and SOL.
Use Case
Description
Liquidity Provisioning
You will be able to provide sSOL to a number of vaults in DeFi in order to earn additional yield on top of your holdings.
Collateral (coming soon)
You can use sSOL as a collateral on various money markets and borrow against it. This way you can either unlock more capital or directly leverage your position.
Borrowed Asset (coming soon)
sSOL can also be borrowed from available liquidity pools in an over-collateralized fashion.
Trading (coming soon)
sSOL is available on Raydium and Orca, so you can easily trade it for other tokens on Solana. Keep in mind that trading sSOL may result in your stopping to earn rewards.