Recently, I've been observing the liquidity changes of Lombard Finance. Since the Royco Protocol opened withdrawals on May 6th, the flow of funds has been particularly rapid!
A quite obvious phenomenon:
The supply of LBTC on Berachain has been cut in half, dropping by 52%, while most of it has flowed to Sui, which has instead increased by 72%.
Interestingly, although many people think Sui might be a poor chain (with low TVL and a relatively young ecosystem), its DeFi yields are actually quite substantial. If you were already looking to earn Sats (Satlayer Points) and Lux (Lombard Points), Sui is basically the best place right now.
I am also researching a few strategies and have organized them simply for everyone:
If you want to earn Sats (Satlayer Points)
The current best route is:
🔻 Exchange SUI for xBTC
🔻 Deposit about half of the xBTC into the satlayer vault to get satXBTC
🔻 Then go to Bluefin and deposit satXBTC and xBTC into the LP pool
This way, you can earn Sats points and approximately 10% APR (annual percentage rate).
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If you want to earn Lombard's Lux Points
This is a bit more complicated, but the returns are also higher!
🔻 Exchange SUI for LBTC
🔻 Deposit LBTC into Suilend
🔻 Collateralize LBTC and borrow SUI (the interest rate is quite low)
🔻 Stake the borrowed SUI into Springsui to get sSUI
🔻 Deposit sSUI back into Suilend and stake again
You can loop this a few times, depending on your risk tolerance. This way, you can earn 3 times the Lux points and also make about 2.5%–4% APR!
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Why is everyone starting to flock to Sui?
In my opinion, whether the TVL is high or not is not the issue; the yield is what matters! Although there are some strategies on Berachain, from what I've seen, Sui offers the highest yield efficiency, and combined with the efficiency of point accumulation, it is definitely one of the best yield strategies right now!
#KaitoYap @KaitoAI @JacobPPhillips @Lombard_Finance #Yap
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