How to profit during downtrends (LUNA and SOL staking strategies)

With the market facing extreme volatility, yield farming presents us with an opportunity to continue to generate profits during a downtrend. Instead of keeping assets like LUNA and SOL in your wallet and letting them gather dust, the amazing world of DeFi enables us to earn yield and accumulate tokens, even in a downtrend.

TL;DR:

How to stake your LUNA for 38% APY with no impermanent loss.
Earn up to 20% on your SOL.
Portfolio allocation is key when it comes to Layer-1s (L1s). Spread your bets across your highest conviction L1s plays and explore their ecosystems.

LUNA staking

LUNA and SOL are both great L1s that you likely have sitting in your portfolio. Why not earn yield on them so that you can fight market volatility and keep the ball rolling, despite what’s happening in the market!

For LUNA holders, I’ve just discovered an insane LUNA staking strategy which enables you to earn 38% on your LUNA with no risk of impermanent loss. This strategy harnesses the power of Loop Finance, an automated market maker (AMM) in the Terra ecosystem which is paying insane rates on their pools.

I run you through step-by-step how to execute this strategy here:

4/ Firstly we'll start with $LUNA. What if I told you that you could earn 38% on your $LUNA with no impermanent loss or liquidation risk..

Well, you're in luck because @loop_finance + @staderlabs have combined to create one of the best pools in the Terra ecosystem.
— Miles Deutscher (@milesdeutscher) February 21, 2022

38% on your LUNA is pretty insane! Why keep your tokens on an exchange when you can harness the power of decentralized finance (DeFi) to earn passive income?

SOL staking

We can replicate this exact same model in the Solana ecosystem, via a multi-protocol strategy combining Lido Finance, Saber and Sunny Aggregator. Through Sunny’s aSOL-SOL pool, you can earn 13% on top of a 5.8% staking reward!

Like the aforementioned LunaX-LUNA LP, this strategy contains no risk of impermanent loss as the price of aSOL is the same price as SOL.

Here’s exactly how to utilize this strategy to put your SOL to work:

13/ But, now we know how to earn insane APRs on our $LUNA, how can we do the same for our $SOL holdings?

Lucky this multi protocol strategy combining @LidoFinance + @Saber_HQ + @SunnyAggregator allows us to do exactly that!
— Miles Deutscher (@milesdeutscher) February 21, 2022

This strategy pays an effective 15.9% APY, which isn’t bad considering you’re avoiding impermanent loss whilst compounding SOL tokens.

Banter’s take

By participating in yield farming during a downtrend, you can set yourself up for future success as you’re effectively accumulating tokens at lower levels. Once the market rallies, these additional tokens will mean extra profits as opposed to simply storing your tokens in a wallet.