Earn passively using lulo
Earn DeFi yields on USDC easily
One common misconception about DeFi is that it requires active management. When you provide liquidity on Raydium, you must actively monitor it to ensure it remains within your price range. In lending and borrowing, you don’t want to lend your assets, borrow from another, since crypto is highly volatile, get liquidated.
The one above all is, there are different defi protocols, each offering its own opportunities to earn juicy APYs for lending crypto assets. Actively navigating through 4-5 different DeFi protocols, comparing APYs, and moving funds around, which would attract fees, is time-consuming and requires lots of active decision-making. Not to mention, connecting your wallets to some of these protocols, which most times might be shady, not properly audited, can have your funds in your connected wallet wiped out by hackers. How do you trust these DeFi protocols not to rug you?
Enters Lulo
Lulo is a dApp that makes earning interest on stablecoins easier. Lulo is a Defi lending aggregator on Solana that routes stablecoins, primarily USDC, through the top Defi protocols on Solana to find the one with the best yields to invest in. It's also a savings app for those who want to earn steady yields with minimal risk exposure.
How it works (BTS)
Users deposit stablecoin, $1000
Lulo automatically diversifies users’ funds, using smart contracts. The users’ funds are routed through different lending protocols such as Kamino, Jupiter, and Solstice, each time picking the one with the best yields, then Lulo deposits the Stablecoin into a defi lending protocol.
The various DeFi lending performances are being monitored, so if there are any significant changes, such as a better APY being offered by one for a period of time over others, smart contracts automatically rebalance user funds, moving it to that DeFi lending vault.
Lulo does not collect any fees for this, except a one time fee for a solana account creation on its platform.
Why DeFi lending
Lending in DeFi is one of the safest ways to earn passively, as users who want to borrow another asset have to deposit collateral in most cases, more than what they want to borrow.
In DeFi, for instance, if users want to borrow 1000 USDC, they have to deposit 1200 USDC worth of a crypto asset pair.
Lulo generates yield by depositing funds into these over-collateralized lending pools. These pools are enforced by blockchain smart contracts that have strict rules around borrowing and repayment.
Lulo has integrated 5 of Solana’s biggest and most trusted lending platforms to generate yield: Kamino, Drift, MarginFi, Jupiter, and Save.
Users don’t have to navigate and move funds across various DeFi lending protocols to earn yields on their assets. They don’t have to actively manage it; Lulo does the heavy lifting
Also, lulo compound users earned interest on the principal, making the total deposit higher each time.
Currently, Lulo has three deposit types
Boosted Deposits provide the highest risk-adjusted lending rates for USDC on Solana, on average offering 1-2% more APY than the nearest competing pool. Part of the users' deposits here is used to protect users who deposit USDC into the protected pool. It is used to provide insurance
Protected Deposits are the exclusive option for built-in capital protection on your USDC in DeFi. With Protected Deposits, you’re covered against black swan events like hacks. You earn slightly less in APY; think of it as paying insurance for absolute funds protection in case of a smart contract hack. These funds are being paid to boosted deposit users for offering coverage
Classic Deposits provides users with complete control over which DeFi pools their funds are routed through, the ability to use a variety of stablecoins (USDT, USDC, PYUSD), and more options for those with advanced trading strategies, such as choosing the percentage split of stablecoin you want to put into various lending pools.