 is a decentralized money market on Solana (much like solend/aave).

This article will explore and explain a looping strategy I found while searching for higher yield on my stablecoins(

: Before proceeding further, it is important to be note that this strategy is not without risk. If you are consider using this strategy, you should fully understand its risks. I'll try my best to explain some of the risks involved to the best of my understanding which may not be exhaustive. Not financial advice in any sense, just a fren sharing some alpha.

Strategy is extremely simple, often used on AAVE and such. We deposit an asset 

 (stablecoin $USDH) into a lending pool, borrow another asset 

 back into the pool and so on. ( colloquial called 

For this particular example we will use the 

on port finance (which is an isolated pool)

We keep repeating these steps ideally not more than 3-4 times.

As you can see from the Port finance dashboard and above image, currently the incentive rewards are quite high to borrow BTC. In fact, they're so high that you're effectively being 

Then you get paid 4.9% to deposit that BTC back to the pool.

My cursory napkin math comes out to be upto 25% APR if you loop 5 or more times.

Alternatively you can use this strategy for your BTC stack purely.

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