Imagine borrowing at 8% and locking 18% risk-free for 6 months.
Thatās not āinvesting.ā Thatās printing yield if you can stomach the wait.
This is what Solstice is doing on Solana.
Solsticeās eUSX has a fixed-rate PT on Exponent (PT-eUSX).
Kamino lets you loop PT-eUSX: deposit it, borrow USX cheaper, buy more PT-eUSX, repeat.
Is there demand? Yes! USX supply on Kamino just past $11M and is bumping into caps.
Supplying USX there gets you a lending yield, 50k USX in monthly rewards, plus 5Ć Flares.
A clean way for you to participate without looping if they donāt want to.
Simple flow Iām seeing people run:
ā¾Swap stables ā eUSX ā PT-eUSX on Exponent (fixed rate).
ā¾Deposit PT-eUSX on Kamino, borrow USX.
ā¾Rebuy PT-eUSX, redeposit. Stop at a sane LTV.
Where it breaks & some risks to manage:
ā¾If borrowed APY jumps above your fixed PT APY.
ā¾If you canāt hold PT to maturity (price can move).
ā¾Any stable/venue risk across USX/eUSX, Exponent & Kamino.
If youāre not looping, just supplying USX on Kamino is the low-maintenance path with the Flares boost. If you are looping, size it so a rate spike or volatility doesnāt force you out early.
Glad to partner with @solsticefi on this one to unpack how to play on this strategy.
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