Hey Edge readers,

Looking for ways to park your dollars onchain? Read on to find out about two yield optimizers on Solana that help you grow your savings with ease. In related news, we’re excited to launch our newest investable pool that optimizes your yield on ETH - Tokemak balETH.

In today’s edition:

• Easy stablecoin yields on Solana

  Spotlight on two yield optimizers for USD savings.

• New investable pool: Tokemak balETH 🔵

  Accumulate ETH with peace of mind.

• VanEck predicts Solana growth trajectory 🗞️

  Aave sees TVL surge in BTC-backed tokens, Ethena launches new stablecoin, and more.

Stay sharp. 🫡

-The Exponential team

Easy stablecoin yields on Solana

Solana’s DeFi ecosystem has exploded over the past year, reaching nearly $5.5 billion according to DefiLlama. With more TVL, comes new protocols and ways to earn yield. Carrot and Lulo, two yield optimizers with slightly different approaches, are making it easier than ever to passively grow your stablecoin holdings.

Carrot: Simplified Stablecoin yield farming

Carrot positions itself as an ideal solution for users looking to earn passive stablecoin yields without the complexity of constantly rebalancing across various DeFi pools. It is a tokenized yield aggregator that continually optimizes your yield by reallocating funds across top Solana-based lending platforms like Kamino, Drift, among others.

How Carrot works

Carrot’s process is simple:

1. Deposit your USDC or PYUSD.

2. Carrot automatically rebalances your assets across the top-yielding lending protocols.

3. The yield accumulates in the value of your CRT token, which you can redeem anytime without a lock-up period.

Carrot’s risk management includes diversification across lending platforms, continuous monitoring, and smart allocation to avoid overexposure to any single strategy or protocol.

Lulo: Your DeFi savings account

Lulo simplifies yield farming by automating the process of finding the best lending rates across Solana’s lending protocols. The platform actively manages your deposits, shifting funds to higher-yield platforms as opportunities arise.

How Lulo Works

1. Deposit: Funds are routed directly to the highest-yielding protocol at the time of deposit.

2. Smart Routing: Lulo splits your balance across multiple dApps to avoid saturating one platform and diminishing returns. It rebalances every hour to optimize yield.

3. Withdraw: At any time, users can withdraw funds back to their wallet, with rewards earned during the process.

Lulo’s automated routing system ensures users earn the best rates without the need for constant monitoring. This hands-off approach makes Lulo the ideal DeFi savings account for those seeking optimized yield with minimal effort.

Key takeaways

Both Carrot and Lulo are yield aggregators that scan for the best stablecoin yields and rebalance, but they take slightly different approaches:

• Carrot focuses on tokenized yield through a single yield-bearing token (CRT), with automated optimization across multiple stablecoins (USDC and PYUSD pools). It’s ideal for users who want a hands-off approach while benefiting from tax efficiency and token appreciation.

• Lulo emphasizes automated rate maximization, routing funds directly to the best lending rates only among pools of the same asset (USDC or PYUSD). It’s perfect for users who want hands-free optimization with a more targeted yield approach.

Solana’s DeFi ecosystem is maturing, and protocols like Carrot and Lulo are making it easier than ever to earn passive income on stablecoins.

In the news

• VanEck research predicts Solana could reach 50% of ETH market cap - Read 

• Sky (fka Maker) reconsiders plan to offboard WBTC after further discussions, “indefinitely pausing the collateral offboarding procedures” - Read

• Aave sees a surge in BTC-backed tokens, including WBTC, amid restructuring drama - Read

• Ethena launches new UStB stablecoin backed by BlackRock’s BUILD fund - Read

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