Sonic airdrop strategy #2: Looping on Silo

gm,

After setting up my one-click leverage strategy on Euler, I started looking for more Sonic plays as I don’t want to the exact same thing on all my wallets.

That’s when I landed on Silo Finance. A protocol that let’s you loop your assets, like Euler which we talked about a few days ago.

Choosing Silo over Euler comes with one advantage and one disadvantage.

The advantage is you can loop your liquidity x20 instead of x10 like on Euler. The downside is you have to do it manually.

So what do you get?

You will earn 8x Sonic Points, Silo Points (recycled Sonic Gems), and yield from staking.

The strategy: Looping S/stS

• Get some stS. Either by staking S or swapping for it on a DEX.

• Deposit stS into Silo’s lending market (this earns Sonic Points, Silo Points, and yield).

• Borrow S against it (low risk since S/stS are tightly correlated).

• Swap borrowed S for more stS.

• Repeat the loop to max out leverage.

Since the assets are so correlated, liquidation risk is minimal, meaning I can go aggressive with leverage—up to 20x Sonic Points on deposits and 10x extra on borrows.

Talk soon,

-Kris Valen