Levered Solana LP Strategy Analysis
Hey DeFi University Skool Community! 👋 David here, your speaker breaking down this video segment (29:37-32:46) on SOL/USDC chart analysis and LP strategies from our live call earlier today where we analyzed a levered Orca CLP using Defituna. 📊 Market Setup & Opportunity Solana's Recent Performance 📉 - Pullback: 24% correction (from ~$206 to $156 over two weeks) - Current View: Post-correction presents ideal LP entry opportunity - Strategy: Stable-paired LP positions = essentially a short put option, where the spot price within your range could be thought of as the strike price of the option. An equidistant range from the spot price would equate to an ATM short put in this analogy. 💰 Yield Dynamics - Daily Yield: 0.6% with 3x leverage, that's 0.2% per day without leverage - think about loss versus rebalancing here, is it worth it to LP SOL for 0.2% per day? 🔥 - Trade-off: Less long exposure on upside within range - Options Perspective: Perfect setup for high-conviction plays post-dip if you want some levered SOL deltas. 🎯 LP Strategy Breakdown The "Short Put" Approach 📈 In the video, I highlight how the pullback creates an ideal short-put setup via LP: - Pairing: SOL with stables like USDT - Income: Earning solid fees while hedging - Downside Scenario: be careful with leverage, borrowing stables created a liquidation level only on the downside. - Upside Scenario: Exposure fades, but yields compensate if patient 💎 ⚠️ Risk Considerations - Leverage Demands Caution: for high-conviction plays - Impermanent Loss: Amplified during volatility spikes with leverage 📈 Current Market Data As of August 6, 2025 Solana (SOL) 💜 - Current Price: ~$164.08-$168.75 USD - 24h Change: Down ~2-4% from $169.42 - Monthly Context: Up overall but volatile amid broader market dips - Pullback Confirmation: Recent drop from July highs ~$206 aligns with analysis 🌊 SOL/USDT LP Yields on Raydium/Orca Stable Pairs Performance: - SOL-USDC Pool: 29-83% APR - Featured Pool: $68M TVL at 82.83% APR 💎 - Daily Equivalent: ~0.6% possible at leverage (per similar setups)