Your Ultimate Yield Farming Guide on Sonic (Part 3)
1) Silo Finance + Shadow Exchange: High-Leverage S/stS Looping
2) Pendle Finance + Rings Protocol + Silo Finance: wstkscUSD Leveraged Looping
3) Beethoven X + Silo Finance: Stablecoin LP Looping
4) Curve Finance + Silo Finance: FRAX/USDC.e Leveraged Looping
5) Yearn Finance + Euler Finance: Automated Stablecoin Looping
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1) Silo Finance + Shadow Exchange: High-Leverage S/stS Looping
Strategy: Deposit stS into Silo’s S/stS market, borrow $S (95% LTV), swap $S to stS on Shadow Exchange, redeposit into Silo, and loop up to 20x. Optionally, stake excess stS/S in Shadow’s S/stS LP pool (116% APR reported) for extra yield.
Steps:
Acquire stS (stake $S or swap on Shadow Exchange).
Deposit stS into Silo’s S/stS market.
Borrow $S at 95% LTV (tight correlation minimizes liquidation risk).
Swap $S to stS on Shadow Exchange.
Redeposit stS into Silo and repeat (20x max).
(Optional) Provide stS/S to Shadow LP pool, stake LP tokens back in Silo, and loop further.
Estimated APR: 40-60% (25-40% base from Silo + 116% LP boost from Shadow, adjusted for leverage and borrow costs).
Yield Boost: Sonic Points (8x on Silo deposits), Silo Points, Shadow incentives. 20x leverage on a correlated pair (S/stS) plus high-APR LP option maximizes returns.
2) Pendle Finance + Rings Protocol + Silo Finance: wstkscUSD Leveraged Looping
Strategy: Mint scUSD with USDC.e on Rings, stake for stkscUSD, tokenize into PT-wstkscUSD (14.4% fixed APR) on Pendle. Deposit PT-wstkscUSD into Silo, borrow scUSD, remint on Rings, and loop 4x-6x for stablecoin yield amplification.
Steps:
Deposit USDC.e into Rings to mint scUSD.
Stake scUSD on Rings for stkscUSD.
Split into PT-wstkscUSD on Pendle (fixed 14.4% APR).
Deposit PT-wstkscUSD into Silo’s market.
Borrow scUSD (up to 80-90% LTV, depending on market).
Remint scUSD on Rings, restake, and repeat loop.
Estimated APR: 50-70% (14.4% base x 4-6x leverage + Sonic Points at 12x + Rings Points).
Yield Boost: Sonic Points (12x), Rings Points, Silo Points. Fixed yield (PT) ensures stability, while 6x leverage and triple-point stacking push returns high.
3) Beethoven X + Silo Finance: Stablecoin LP Looping
Strategy: Provide USDC.e/scUSD liquidity on Beethoven X (50/50 pool), lock BEETS for veBEETS (2.5x boost), deposit LP tokens into Silo, borrow scUSD, redeposit into Beethoven pool, and loop 4x-6x.
Steps:
Acquire USDC.e and scUSD (e.g., via Rings or SwapX).
Deposit into Beethoven X’s USDC.e/scUSD pool.
Stake LP tokens for BEETS, lock for veBEETS (6 months max boost).
Deposit LP tokens into Silo’s market.
Borrow scUSD (80-90% LTV).
Redeposit scUSD into Beethoven pool and repeat.
Estimated APR: 60-100% (20-60% base from fees/BEETS x 2.5x boost x 4-6x leverage + Sonic Points).
Yield Boost: Sonic Activity Points (2x), BEETS rewards, Silo Points. Stablecoin pool minimizes IL, veBEETS multiplies base yield, and leverage scales it further.
4) Curve Finance + Silo Finance: FRAX/USDC.e Leveraged Looping
Strategy: Deposit FRAX/USDC.e into a Curve pool, stake LP tokens for CRV, lock CRV for veCRV (2.5x boost), deposit LP tokens into Silo, borrow USDC.e, redeposit into Curve, and loop 4x-6x.
Steps:
Acquire FRAX and USDC.e.
Deposit into Curve’s FRAX/USDC.e pool.
Stake LP tokens in Curve gauge for CRV.
Lock CRV for veCRV (2.5x boost).
Deposit LP tokens into Silo’s market.
Borrow USDC.e (80-90% LTV), redeposit into Curve, and repeat.
Estimated APR: 40-75% (10-30% base from fees/CRV x 2.5x boost x 4-6x leverage + Sonic Points).
Yield Boost: Sonic Points (2x), CRV rewards, Silo Points. Low-slippage stablecoin pool + veCRV boost + leverage maximizes yield with moderate risk.
5) Yearn Finance + Euler Finance: Automated Stablecoin Looping
Strategy: Deposit USDC.e into a Yearn vault (e.g., USDC.e/scUSD), let Yearn optimize yields, withdraw profits, deposit into Euler, borrow USDC.e (up to 9.98x leverage), redeposit into Yearn, and loop 6x-9x.
Steps:
Deposit USDC.e into Yearn’s USDC.e/scUSD vault.
Let Yearn auto-compound returns.
Withdraw USDC.e profits periodically.
Deposit into Euler’s USDC.e market.
Borrow USDC.e (9.98x max leverage).
Redeposit into Yearn vault and repeat.
Estimated APR: 75-120% (15-40% base x 6-9x leverage + Sonic Points).
Yield Boost: Sonic Points (2x), Euler incentives. Automation simplifies management, Euler’s high leverage ceiling pushes yield to the top end.