Automated Yield with SOL Earn

Welcome to this step-by-step process on using Sendit's SOL Earn, an automated yield product. This guide will walk you through how to deposit your Solana and start earning passive rewards. It covers explanations of the different vaults, their workings, associated risks, and the steps to deposit your assets and track their growth.

Step 1

Begin by exploring SOL Earn, which offers three distinct vaults to accommodate varying investor risk appetites. Once you deposit your Solana, you'll start earning passive rewards.

Step 2

Initially, we will explore the three vaults and their compositions. Following this, we will discuss the operational mechanisms of each vault, and finally, address the risks associated with these strategies.

Step 3

SOL Earn presents three vaults: the Blue Chip Vault, the Mid Cap Vault, and the Small Cap Vault. Each vault caters to different risk appetites, from the safest yield to the highest risk and yield. All vaults function by depositing Solana into money markets on Sendit, accruing supply APRs from those pools.

Step 4

If you are unfamiliar with money markets, it is advisable to view our explainer video. Let's delve into the specifics of each vault, beginning with the Blue Chip Vault, which exclusively focuses on established large-cap tokens.

Step 5

The Blue Chip Vault invests in long-established tokens with ample liquidity and volume, ensuring stability. Although yields are more stable, they are lower compared to other vaults. This vault is ideal for investors seeking safe, consistent returns with minimal risk.

Step 6

Next is the Mid Cap Vault, which combines blue chip assets with reliable mid-cap tokens. While mid caps are riskier due to being newer and smaller, they offer higher yield potential.

Step 7

Returns from the Mid Cap Vault are generally higher than the Blue Chip Vault. However, investors should be prepared for moderate risk and possible short-term fluctuations.

Step 8

This vault suits investors willing to accept extra risk for better yield. Finally, the Small Cap Vault includes assets from both the Blue Chip and Mid Cap Vaults, along with smaller, higher-risk tokens.

Step 9

The Small Cap Vault tokens can provide substantial yields but carry significant risk due to volatility and a weaker track record. While the potential for high yields is present, so is the possibility of losses.

Step 10

Designed for investors aiming for maximum yield, this vault requires accepting a high risk level. To start, deposit your Solana into the Small Cap Vault.

Step 11

Select the amount of Solana you want to deposit and click the Deposit button.

Step 12

Your Solana will be automatically distributed across various markets. Once deposited, your balance will grow automatically as the yield accrues, requiring no further action from you.

Step 13

To view the allocation of your Solana, click on Show Vault Positions.

Step 14

This feature allows real-time tracking of how the vault reallocates liquidity between markets. For example, the Blue Chip Vault adjusts every five minutes to capture the best yield.

Step 15

Discussing risks, these vaults do not engage in borrowing or leverage. They only supply Solana to existing markets, eliminating liquidation and hidden systematic risks.

Step 16

The primary risk lies in the underlying assets of each vault. Risk levels range from low in the Blue Chip Vault, to noticeable in the Mid Cap Vault, and significant in the Small Cap Vault, with corresponding potential rewards.

Step 17

That's the process in a nutshell. Choose the vault aligning with your risk preference, deposit your Solana, and let Sendit optimize for the highest possible yield.