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when I was attempting to use the [Kamino.Finance Multiply vault] it kept saying there wasnt enough volume available or something

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Native delegated staking is the safest way to do it.  If you want to take on the added 1) smart contract risk and 2) third-party/DeFi custody risk, I suggest using Kamino's JUPSOL Multiply product.  As noted above, I've been averaging ~16% aggregate yield here.  https://app.kamino.finance/lending/multiply

I had previously used JITOSOL Multiply, but JUPSOL benefits from the Jupiter foundation forwarding all MEV, 50% of priority fees from their platform, as well as having delegated an additional 100K SOL and distributing 100% of that stake yield to JUPSOL holders, resulting in an LST yield close to 10%.  Using the Multiply product, the net yield has surpassed 20% for periods of time.

You ought to keep a loose eye on the debt markets to make sure the SOL borrow costs don't eclipse the LST yield APY for prolonged periods of time.  So far, that has never happened.  Further, the product is designed to ignore liquidity based fluctuations in the LST price, which vastly reduces liquidation concerns.  Additionally, Kamino has a "soft liquidation" mechanism that, once excessive Loan-to-Value ratios are hit, incrementally liquidates leverage in 20% increments until the rates fall back into acceptable metrics.  They even have a system wide risk dashboard that anyone can view: https://risk.kamino.finance/

Lastly, by participating on Kamino, you generate "season points", which qualify you for their KMNO governance token airdrop.  Because staking the KMNO token on the platform increases your points generation over time, this creates a supply restriction dynamic that acts as a tailwind for KMNO market price.  It's been a virtuous cycle, and the most profitable rewards system I've ever been a part of.

As an aside, JITOSOL borrow rates on the platform have not been beneficial for Multiply over the past 24 hours, often resulting in lower net yield over the LST's native yield.  It's not a problem yet, as net yield remains positive, but it does indicate the potential problems with leveraging debt markets to increase net yield.  JUPSOL hasn't suffered this fate, largely on account of less debt market demand for the token in conjunction with its higher native yield.

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Asante said:

Are bitcoin and ethereum mining really such thin pickings?

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Ethereum is a proof of stake network now, so there is no mining complex servicing that particular blockchain, only validators, which is not nearly as competitive of a landscape as the bitcoin mining complex.

The simplest way to review how heated competition is amongst bitcoin miners, is to review the aggregate network hashrate.  Recall that the designer(s) of bitcoin implemented a self-adjusting mechanism that changes the mathematical difficulty required to solve a block puzzle, based on how many miners are participating.  This is done so that a single miner cannot so easily monopolize the network and in turn implement a 51% attack.  As we can see, the hashrate is higher than it has ever been, indicating a ridiculous amount of miners and compute power dedicated to solving blocks.

   


You can check out the individual publicly traded miners to see how they've been performing... MARA, RIOT, CLSK, HUT, CORZ.  CORZ is the only one I would be interested in, but I closed out my position there for something like +200% last Thursday.  I believe CORZ is leading the sector, not because they're so great at bitcoin mining, but because they are actively pivoting to diversify their exposure toward the AI sector.  I will look to re-enter, but I needed to take some profits on this massive run we've had, post US election, and CORZ was the low hanging fruit (i.e. my lowest conviction active trade in the sector that happened to be highly profitable in the moment).

AI compute companies are incredibly thirsty for well-connected rack space, the type of infrastructure that takes months and huge capital commitments to develop between securing high power utility feeds, industrially cooled warehouse space and reliable fiber optic internet connections.  CORZ figured out that their mining warehouses are suited to serve the AI power house needs, and are leasing space to these companies as part of their business.  Given that this type of AI infrastructure tends to be valued at an order of magnitude higher than BTC mining infrastructure with regard to megawatt capacity, it's easy to see why they are opting to pivot.

Michael Saylor, CEO of Microstrategy (MSTR) made a poignant remark earlier this morning that reflects on the bitcoin miner's plight, and why investing directly in crypto, or utilizing MSTR as a leveraged vehicle to do, makes more sense.

   

clockworkshroom said:

Is it unreasonable to ask that one of you smart folks turns $5k in to $5 mil for me without me doing any work?

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Yes.

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I really wish I had the trust in myself to go deep on crypto without making rash decisions.

So far my $500 invested a couple of years ago has turned in to $1500 requiring me to click a few buttons maybe twice in that time. But I know there is so much more potential!

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clockworkshroom said:

Is it unreasonable to ask that one of you smart folks turns $5k in to $5 mil for me without me doing any work?

I really wish I had the trust in myself to go deep on crypto without making rash decisions.

So far my $500 invested a couple of years ago has turned in to $1500 requiring me to click a few buttons maybe twice in that time. But I know there is so much more potential!

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