What can you do?

Now that Credit Accounts work not only on Overcollateralized Lending Protocols but a broad spectrum of Defi Protocols what can you do?

Margin Trade on Solana $2B DEX Liquidity:

Benefits added over Phase 1:

Credit on DEX trades:
- Take spot margin to buy/sell tokens on Solana based DEX's.
- Keep in mind that the trade happens on the DEX, Asgard just provides credit.
No funding rates: only borrow rates which are often cheaper.
No scam price wicks: whitelisted tokens have robust liquidity on AMM's so borrowers won't have any slippage issues if taking a large trade.
Risk Management Tooling:
- configure limit orders, stop losses, take profit to manage the risk on your position effectively.
- configure alert stack like Hiemdall to get upto speed quickly
Reduce your fees by farming yields:
- Eg: instead of going long on SOL by just doing 2X SOL/USDC you can do swap it for jitoSOL/USDC.

Long/Short margin trading.
Boosted Longs/Shorts: reduce your overall fees by farming yields.
Pair Trading: draw credit to increase exposure to pair trades like SOL/ETH, SOL/BTC, BONK/BTC.

Inset instead of longing SOL (via USDC), you can long jitoSOL/USDC.

You can also think about depositing this jitoSOL into jitoSOL-SOL LP to stack yield farms on top.

Draw a credit line to lever up on LST and LRT yields.

In the previous example, we just stopped post converting SOL -> jitoSOL. Why stop there when you can also farm LP yields? Composable Credit!

Draw a credit line to get more funds to deposit in Lulo, Drift Earn, Defi Carrot etc.

Calculation of net ROE:

Earnings from JLP: 41k JLP * 70% APY = 28,700 JLP value in SOL equivalent per year
Cost of borrowing: 800 SOL * 5.4% APY = 43.2 SOL per year
Net profit in SOL equivalent: 28,700 - 43.2 = 28,656.8 SOL
Equivalent ROE: (28,656.8 SOL / 100 SOL initial investment) * 100 = 28,656.8% per year

Last updated 1 year ago