How to Earn Up to 182% with Tokenized BTC on Solana’s Sunny Aggregator
Before we get started, a reminder that this is not a recommendation or endorsement to buy any tokens mentioned in this tutorial.
Last week, we discussed how I can earn high yield with tokenized BTC using farms on Saber AMM (a similar AMM to Curve on Solana). This week, I’m highlighting an aggregator, similar to Yearn Finance that recently launched on Solana, which compounds returns earned via Saber AMM liquidity pools and incentivizes LPs with a new native governance token. Sunny Aggregator is a composable DeFi yield aggregator on Solana, designed with composability, enabling applications and protocols to easily build on top of it.
Sunny launched on August 29th and has already climbed to $1.54B in TVL, the second highest among Solana DeFi dApps, with a 638% increase in TVL over just the last 7 days.
Sunny also has a native governance token, called SUNNY, that was generated on September 4/5th. The token so far has been used to help incentivize LPs to stake their Saber LPs and earn a combination of the SBR token and SUNNY token for a combined higher net APY.
There is currently a 16% performance fee on non-SUNNY yields, charged by Sunny protocol, which are redirected to the Sunny DAO. According to the Sunny Medium account, this revenue will partially be used to perform buyback and burns of SUNNY. The APY displayed in the Sunny app already takes into account the performance fee. At launch, the buyback and burn feature is not yet implemented, so rewards are currently accumulated in an account belonging to the Sunny DAO.
How to Earn Up to 182% with Tokenized BTC on Sunny Aggregator
In today’s opportunity, I’ll show how I can earn high yield as an LP on Saber, staking the LP on Sunny to earn additional SBR and SUNNY rewards. I’ll also briefly explain how I’m using the RenBridge, which is much easier to use and more reliable to transfer BTC to Solana. Alternatively, I could use AllBridge to migrate other assets like stablecoins from Ethereum, BSC, or Polygon to Solana.
Please also be aware of a few major risks.
- Smart contract risk on Saber, Sunny, and Ren protocol, and the AllBridge bridge.
- Oracle failure could contribute to a loss of funds.
- There’s some centralized risk in using the RenBridge.
- Pegged assets like renBTC can de-peg.
- The quoted APYs/APRs could fluctuate depending on the amount of competing liquidity to earn rewards and the trade volume in these liquidity pools.
- As always, this is not financial advice. You should not follow any of my writing as an investment strategy.
1 – First, if we assume I’ve never used DeFi on Solana before, I need to set up a Solana compatible wallet. MetaMask and other EVM-only wallets will not work with Solana. So the best wallet I’ve used, founded by former 0x engineers, is Phantom Wallet. It’s a browser extension wallet that sits on Chrome just like MetaMask and allows me to connect a hardware wallet like Ledger. I can follow instructions here for installing and setting up Phantom.
2 – Next, I am going to need some SOL to pay transaction fees. I can get SOL into my wallet by buying it on a centralized exchange like FTX or Coinbase and then depositing/sending it to my wallet address in Phantom.
3- I will then check the potential yields on the Sunny Aggregator app to see…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
