Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Solana Forum => Topic started by: Minethemine on April 05, 2025, 02:50:50 PM
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The Solana (SOL) community can utilize the Terra Liquidity Alliance erisprotocol, especially via the yield farming of Eris Protocol, in a strategic way to achieve optimal returns while supporting cross-chain collaboration.
Here’s how we can do:
Key Opportunities for Solana Community
1. High-Yield Farming with WSOL:
Whitelisted WSOL: Exchange SOL for Wrapped SOL (WSOL) to participate in the liquidity pools on Liquidity alliance. 300%+ APY on WSOL deposits is offered by Eris Protocol, which is significantly higher than typical DeFi returns.
LUNA Price Multiplier Effect: The Alliance rewards are paid in LUNA. Since LUNA growing from $0.18 to $3, dollar rewards would grow from $3M to $30M annually (with fixed LUNA rewards). The user estimate of $62M could be compounding or dynamic rewards. The value of rewards are in USD increases proportionally with the price of LUNA. A 5x rise in LUNA (e.g., 0.18→0.9) transforms a 2.84 M reward pool into 14.2M reward pool + in annual incentives.
2. Arbitrage via Low-Cost Borrowing
Borrow at <5% APR: Borrow stablecoins or assets from Solana-based DEXs (e.g., Raydium, Marginfi) at favorable rates. Invest these at Eris Protocol to obtain the spread (e.g., 300% yield compared to 5% borrowing rate). Increased WSOL demand strengthens Solana’s role in multi-chain DeFi.
Leverage Strategies: Leverage returns by borrowing against SOL assets, although this raises risk but if used correctly it can immensely benefit the Solana community.
3. Zero Unbonding Period
Instant Liquidity: In contrast to conventional staking, Terra liquidity alliance Eris Protocol provides instant withdrawals, minimizing exposure to price fluctuations and allowing capital to be repositioned rapidly.
4. Strategic Benefits for Solana Ecosystem
• Cross-Chain Growth: Terra integration of WSOL enhances the interoperability of Solana and brings Terra users to Solana’s fast, low-cost ecosystem.
• Liquidity Boost: Greater use of WSOL will create demand for SOL, driving its price and usage. The Volume and liquidity will expand of Solana ecosystem around cosmos which will trigger massive growth of Sol ecosystem.
• Community Incentives: Ecosystems such as Marinade Finance (Solana’s liquid staking pioneer) may collaborate with Eris to provide bundled yield prospects.
5. Risks to Mitigate
• LUNA Volatility: Since returns are dependent on the price of LUNA. A decline may additionally erode yields; hedging (e.g., futures) or direct conversion to stablecoins/SOL would reduce this risk in it.
6. Cross-chain opportunities:
1. Bridge SOL to Terra: We need to convert/exchange SOL for WSOL using Wormhole or Allbridge.By strategically bridging WSOL to Terra, Solana users can dominate cross-chain yield opportunities while boosting their ecosystem’s liquidity.
2. Move WSOL into Eris Protocol: Stake into LUNA/WSOL pools or single-asset farms.
3. Reinvest or Exchange Rewards: Compound LUNA rewards for increased reward or exchange to SOL/USDC to lock profits.
4. Leverage Responsibly: Use Solana-based lending platforms to borrow funds, While preserving collateral buffers.
Messaging to Solana Community
• ROI: 150%+ APY possibility versus Solana’s typical 5-10% staking returns. It will greatly enhance solana Wsol cross chain network around crypto. By attracting more user base.
• Cross-Chain Synergy: We need to frame this as a strategic maneuver to increase Solana’s role in the multi-chain DeFi space.
Example Strategy
• Capital: $10,000 WSOL.
• Borrow: 50,000USDC at 5% 2,500/year.
• Farm: Deploy $60,000 into ErisProtocol at 300% APR $180,000/year.
• Net Profit: 180,000−2,500 = $177,500
Conclusion
With access to Terra’s liquidity incentives, Solana users can earn outsized returns while deepening cross-chain liquidity. Success will depend on smart borrowing, dynamic risk management, and education among communities. This partnership has the potential to make Solana a center for pioneering yield strategy innovation, fueling long-term ecosystem expansion.
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(https://i.imgur.com/L6Ms0Jr.png)
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- I think op no one will pay attention or decide to try the erisprotocol that you mentioned because first of all it may be new in this crypto space or you may also say that it has been around for a long time, but of course the question you will be asked is why until now the liquidity of the assets that you showed in that picture is so low.
So, sorry to say but I think instead of them paying attention to what you gave, they will be more comfortable with a protocol that at least they see many traders or communities using a platform or protocol like that.
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~snip
This analysis actually digs deep into how the Solana community can tap into the Terra Liquidity Alliance and Eris Protocol to score high-yield returns and kinda boost cross-chain collaboration. The opportunities outlined are pretty compelling though if you ask me ranging from high-yield farming with WSOL to arbitrage actually with low-cost borrowing.
Of course, there are risks, like LUNA volatility, and although analysis kinda provides some solid suggestions for mitigating those risks, I still actually don't buy it as a full time Idea.