Delf_Men🟠lly

co-founder of @lucky_stake

mod at @panzerdogs
Alpha Hunter for @alphasquad_NFT

[Delf_Men🟠lly @Delf_Menolly]

My #solanaJourney started a year ago this month, thanks to @Timoon21 who told me about P2E through @AuroryProject. Bough my first NFT, and it's still my PFP today.

[Delf_Men🟠lly @Delf_Menolly]

@Timoon21 @GreazeNFT

[Delf_Men🟠lly @Delf_Menolly]

@GreazeNFT @Timoon21 Helloooo 👋😁

[LuckyStake @lucky_stake]

Do you feel lucky, now?

[Timoon from the blocks @Timoon21]

BreakPoint - day 3
Announcements day

[repe @repetny]

1/ What’s the current state of @Solana staking? (Part 1, Economics 💰) How does value flow between delegators and validators? Given the pie is only as big, how many of the ~2,000 validators actually operate at a sustainable profit? Let's see 👇 🧵

[YupiG @YupiG_Crypto]

There is a lot of hype in the timeline for $JUP airdrop and what's coming to #Solana over the next few months, but I haven't seen many summarize the rest of the (very exciting) things that @JupiterExchange is releasing.

A breakdown of $JUP, $JLP, Jupiter Terminal, $SUSD, and more! 👇

1) $JUP airdrop & release
Jupiter is leveraging their presence in Solana by rewarding their current (and future) users with an airdrop of its soon-to-be governance token.

The $JUP distribution is as follows:
- 40% Community Growth (4 rounds of airdrop distribution)
- 20% Locked Token Sale
- 40% Team & strategic reserve (vested over 2 years)

The airdrop will be distributed in 4 phases, with Jupiter stating that one of their aims is to attract new capital flow to Solana it is likely the future phases will be incentivized.

However, the exact airdrop criteria are not outlined yet. Jupiter will be discussing this in the next two weeks with their community.
What we know for sure is the aim for the first round is to prioritize and take care of the Jupiter users who have been consistent throughout the last years.

For the "Growth Airdrop phase", a DAO will be formed that decides how to effectively incentivize liquidity and users to trade more actively. If you haven't been active in Jupiter before it's definitely worth keeping an eye on the future phases.

A token sale will take place on an initial float of 40%, and although the tokens will be locked, details on the vesting schedule for this sale are not known.

Given the great performance of Jupiter:
- 950k unique users
- $35B in volume
- 100K MAU (Monthly Active Users) last month
the $JUP token is definitely going to inject liquidity into Solana and incentivize more (very needed) on-chain activity and liquidity.

2) $JLP and perps trading
The beta of Jupiter perpetual trading was released yesterday, allowing anyone to enter up to x100 leverage short and long positions on SOL, ETH, and WBTC with zero price impact.

This is made possible due to the implementation of the $JLP liquidity pool, a basket of SOL, ETH, WBTC, USDC, and USDT.
Currently, this basket is locked at $2.5M worth of assets with an annualized APR of 55.5% (this was generated based on numbers before the beta went live and the limits were increased significantly, we will have a more realistic number after next week).
Edit: it just got updated to a $3M limit.

JLP pool providers are given $JLP to represent their stake ownership when they deposit any of the basket assets.
However, there is a limitation on the size of your open positions that is dependent on how much available liquidity is in the JLP pool.
Current fees for users are as follows:
- 0.1% fee on position open and close
- 0-2% on swap fees, depending on the liquidity depth
- Borrowing fee between 0.0001%/h to 0.01%/h depending on the utilization rate of the borrowed asset (1%-100%).

It is worth noting that Jupiter routing uses JLP to increase the liquidity depth of their swaps.

3) $SUSD, the leverage stake SOL stablecoin
Perhaps the most interesting announcement after $JUP, $SUSD is intended to be a Solana yield-bearing stablecoin backed by SOL liquid stake with dynamic leverage.
The key points $SUSD tackles are:
- Interest-free loans by collateralizing and staking $SOL
- Decentralized Solana native stablecoin
- Earning stablecoin yield

The premise of $SUSD is to capitalize on Sol's liquid stake yield and DeFi environment to increase the base staking yield from approximately 7-8% to 7-17%.

However, this introduces liquidation risk factors that could result in a potential depeg of the token, this is tackled by:
- Arbitrage of $SUSD if it's price exceeds 1$ by minting $SUSD with SOL
- Re-paying loans for cheaper if the price goes below 1$, redeeming $SOL
- $SUSD loan collateralization ratio of 130% with a progressive liquidation event if the ratio falls to 110%

Effectively, $SUSD is a ~77% TVL loan on SOL entering liquidation risk if the price of SOL drops by ~15%. However, Jupiter will let the actual ratios be decided by the $JUP DAO.

The protocol leverages itself by looping the collateral deposit into borrowing SOL to mint more liquid stake SOL, which then gets re-collateralized into more SOL. It follows this order:
User deposits SOL --> Mints liquid stake SOL --> Deposits liquid stake SOL as collateral --> Borrows SOL --> Mints liquid stake SOL --> and so on.

The leverage will depend on the borrowing rates, as it's capped by the PoS yield. The expected Liquid Stake Sol leverage would go from 1x~3x.

As for the proposed loan repayments, since converting Liquid Stake SOL to SOL incurs a 0.1% fee, it is proposed that this fee will be paid by the $SUSD minter.

In the event of a liquidation, liquidators are allowed to liquidate a user by repaying their $SUSD position until the position is brought back to the 110% ratio. For this, liquidators are awarded a 1% additional SOL.

With the proposed $SUSD mechanics, users can redeem 1 $SUSD for 1$ worth of SOL, creating an incentive to buy $SUSD from the market if the price falls under 1$ and redeem it against 1$ worth of SOL. This buy pressure is intended to re-peg $SUSD.

However, this is not capital efficient as it involves many minting transactions to redeem $SUSD. To address this, it's proposed to include another protocol token, XYZ, that can be redeemed when the price of $SUSD falls below a threshold voted by the $JUP DAO (-5% was used as an example).
The intent is for this to give time to minters to repay their debts at a lower $SUSD price rather than losing their collateral, increasing the buying pressure on $SUSD and thus helping to restore the peg.
It is proposed that this XYZ token generates value to further incentivize this, which can be possible by a portion of the leveraged Liquid Stake SOL accrued yield.

In any case, $SUSD release would represent the implementation of a token that could leverage the ecosystem as a whole up to 3x by increasing the yield generation vs staking SOL (at the cost of having a liquidation risk).
It will be very interesting to see how the implementation of this token affects Solana DeFi and the incentives that Liquid Stake protocols would provide for this liquidity.

4) Jupiter start, a token launchpad
Jupiter is releasing a token launchpad that focuses on simplifying the token launch process, ensuring immediate tradability in Jupiter, and highlighting exceptional projects by providing them with visibility, long-term alignment, ecosystem help, nurturing a community, and delegation features.

Jupiter is also launching a public seed round initiative that allows communities to invest in new projects from day one with vested funding.

We will soon hear news about Jupiter Token Start, a step-by-step guide on how to launch a token that immediately trades on Jupiter, as well as a way for Jupiter users to discover new token launches.

5) CCTP on Solana, Wormhole integration on JUP
Thanks to Circle's Cross-Chain Transfer Protocol coming to Solana, allowing for USDC to be natively minted in Solana and Wormhole's Connect, Jupiter users will be able to directly bridge from any Wormhole-supported chain to Solana directly from Jupiter, with a much higher liquidity and easier process than what currently is available.

Although this integration is not live yet, it will be implemented as soon as CCTP on Solana goes live.
This will greatly facilitate that bridging process to Solana!

6) Jupiter Planetary Developer Week
Last week Jupiter released a new feature that facilitates DeFi development and Jupiter integrations once a day. There's definitely a lot of technical detail to these, make sure to check out Jupiter's blog if any of these interests you!

Day 1 - V6 Quoting API Official Release
This new API version implements Jupiter's new algorithm "Metis" which vastly improves the liquidity levels of dApps with Jupiter integrations.

Day 2 - Jupiter Payments v2
Implements the "exact-out" feature that allows users to select how many tokens they wish to receive and Jupiter finds the best route and needed token amounts to perform the swap.
This allows for many platforms to easily allow users to swap the amount they need to perform a payment in a simple click. You're sure to see this in many NFT payment processors soon!

Day 3 - Jupiter Terminal v2
Effortlessly implement Jupiter into your dApp and customize it - all from Jupiter's GUI.

Day 4 - Unified Wallet Kit
Open-source wallet adapter to easily implement Solana's wallet adapter to any dApp.
Simplifies the time-consuming process of having to set up multiple wallet adapters, wallet states, mobile designs, and more.

Day 5 - Jupiter Gaming Unity SDK
A Jupiter implementation on the Solana Unity SDK allows users to easily implement Jupiter swaps into their games without having any external UIs or links that break immersion.
This also facilitates the creation of game marketplaces, in-game payments, game asset swaps, and more.

--
All of this was announced in the last few days by Jupiter!
There is definitely a lot to unpack in the coming weeks and many releases that will hopefully push more activity and liquidity to Solana.

Any shares would be greatly appreciated, making others aware of what's coming to Solana is a group effort 🫶
Exciting days coming 🫡

[LuckyStake @lucky_stake]

Solana labs, Jito, Firedancer,
Then...
Sig!

Expect improvement in client diversity and faut-tolerance.

[Timoon from the blocks @Timoon21]

Great @tinydancerio talk about the first @solana light client 🤏💃

[LuckyStake @lucky_stake]

Very happy to start BreakPoint with this great validators event. Block 0.

[LuckyStake @lucky_stake]

As part of the Hyperdrive Solana' hackathon, we are thrilled to launch:

H Y P E R S T A K E.

A one-stop shop for diversifying your staking rewards and helping to secure and decentralize Solana!

Still with LuckyRewards 🍀🥩

🧵

[LuckyStake @lucky_stake]

Just upgraded our validator to v1.16.14-jito 🫡

[LuckyStake @lucky_stake]

« Luck is what happens when preparation meets opportunity. » Seneca

[LuckyStake @lucky_stake]

So pleased to receive the Liquid Staking prize. Unusual for a validator, right? Liquid Staking!

It's time to share with you how it started. 👀

But first of all, a big thanks to LamportDAO core contributors @solblaze_org, @mert, @ThalesHXRO and @iirfan

🧵 Thread!
1/9

[Lamport DAO @LamportDAO]

The 3rd place winner of the Liquid Staking track (10 $bSOL + 1m $BLZE) sponsored by @solblaze_org goes to Lucky Stake

View Submission: https://t.co/P4dXAw2gx9

13/65

[LuckyStake @lucky_stake]

gm, LuckyStake at ATH $SOL staked too 🤝
Let's secure and improve Solana together!

[LuckyStake @lucky_stake]

Stake on @lucky_stake, to earn Staking rewards & Lucky Tickets.

Deposit on @marginfi, to earn lending fees & Points.

LST have a great Lucky Boost right now. 🍀

2.31 tickets for each $mSOL directed on LuckyStake.

Maximizing efficiency of LSTs through Solana composability #OPOS

[LuckyStake @lucky_stake]

As part of the OPOS hackathon, we're currently working on LuckyStake-v2.

A major change will be the introduction of Lucky Boost, leveraging the delegation strategies of liquid staking pools.

By directing your xSOLs to us, you boost your chances of winning lucky rewards.

[LuckyStake @lucky_stake]

aka « Better stake than sorry »

[LuckyStake @lucky_stake]

Split your stake and use LuckyStake to enter the Lucky draw without extra risk.

Stake and see you next bull run 🍀

[LuckyStake @lucky_stake]

Better stake than sorry.

Extra lucky rewards on top of 7.7% staking rewards.

21h left to enter the draw and improve Solana with us.