Modulis 6 · Strategies

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Strategy B — the 3-layer system

Why Strategy B?

This lesson builds on what we learned in Modules 3-5: Kamino/Aave lending, Orca/Uniswap concentrated liquidity LP, and Deribit options Put Spread. If any of these terms are unfamiliar, we recommend going back and reviewing the relevant module.

Strategy A has a problem: insurance costs sometimes exceed LP earnings. Strategy B solves this by creating three independent profit layers. Each is optimized for its own function.

Three layers = three income sources

Think of it like having three different jobs:

First job (lending) — stable, small pay. Like a government job
Second job (LP fees) — variable, but potentially high earnings. Like running a business
Third job (options) — premiums and insurance. Like investing

Even if one job temporarily stops working — the other two still cover you.

Portfolio parameters

The example uses SOL = $88

At the time of writing (2026-09) the market is around ~$102 — the figures are illustrative, and the mechanism does not depend on the price. Worth knowing: at the current price this example's LP band ($64–$88) would be out of range, and in 2026-06 SOL fell all the way to $60 — below the lower bound. A real position would have to be moved.

Parameter	Value
Assets	126 SOL (~$11,088 at $88)
Net delta	+56.5 SOL (~45% dependent on price)
Daily Carry	~$1.93 per day (6.4% per year, 126 SOL portfolio, $88 SOL price)
Breakeven LP	~46% (currently: ~68% fee APR = 1.48x coverage)

What is Daily Carry?

Daily Carry (net daily earnings after all costs) is how much you earn per day from the whole strategy, after subtracting all costs. Like a daily wage. ~$1.93 per day (126 SOL portfolio, $88 SOL price) might not sound like much, but it is income that comes from time, not from the price going up.

Important: it is not constant. LP fees stop accruing entirely once the price leaves your range — and they are the only positive term in this calculation. The insurance cost moves with IV, and the debt interest moves with the Kamino rate. The annual figure (~$704) is an extrapolation of today's run rate, not a forecast and not a promise.

These figures depend on portfolio size, SOL price, and market conditions (a 2026-09 example). Actual results may vary.

Layer 1 — Lending (interest)

This lesson takes the SOL path: SOL Kamino collateral → Orca Orca LP. Everything on one chain.

Why this is not a Kamino-or-Aave choice

The chains cannot be mixed. ETH Aave runs on Ethereum and does not accept SOL as collateral, while Orca does not exist on Ethereum. If you chose Aave, your collateral would be ETH and your LP would be Uniswap V3 ETH. That is an entirely separate branch with different numbers. Every figure below applies only to the SOL/Solana path.

Parameter	Value
Collateral	126 SOL ($11,088)
LTV	~42%
Loan	4,704 USDC
Collateral yield	~6% per year
Debt interest	~5-7% per year (USDC Kamino rate)
Liquidation threshold (SOL collateral)	75%
Liquidation price	~$58

⚠️

The liquidation threshold depends on the COLLATERAL type: 75% for SOL collateral, 90% for USDC collateral. Kamino V2 runs many separate markets with different parameters, so verify the threshold in the specific market where you open your position (checked 2026-09; these values change).

Why USDC? USDC is the largest regulated stablecoin (Circle), with the highest liquidity on the Solana network. We previously used USDY (tokenized US Treasury bonds, ~4.5% APY) for the interest offset, but due to lower liquidity and higher smart contract risk, we switched to USDC in 2026. We lost the 4.5% offset, but gained more safety and faster exits.

Layer 2 — Concentrated Liquidity (LP fees)

Orca Whirlpool

Parameter	Value
Type	Single-sided USDC position
Range	-28% below current price
Example (SOL@$88)	$64 — $88
Capital	~3,200 USDC
Yield	~68% per year (instantaneous fee APR, variable)
Fees per day	~$5.95

How does single-sided LP work?

Price above the range ($88+): the whole position is USDC. You earn fees whenever people swap SOL into USDC
Price inside the range ($64-$88): part of the USDC becomes SOL. You earn fees from both sides
Price below the range (<$64): everything has become SOL. Fees stop generating — the position is "dormant"

LP = like an insurance company

An LP position is like an insurance company. You earn every day from fees (like an insurance company earns from premiums). But if the price moves sharply, you incur a loss from impermanent loss (a temporary loss caused by the price difference between LP entry and now), like an insurance company paying out claims. That's why LP and options together make a good team.

Layer 3 — Options (Deribit)

Position	Strike	Size	Delta	Theta/d	Purpose
Long Put	$90	200 SOL	-0.42	-$3.25	Core protection
Short Put	$65	100 SOL	+0.18	+$1.50	Reduces insurance cost
Short Put	$60	100 SOL	+0.12	+$1.00	Even more premium
Short Call	$160	50 SOL	-0.08	+$0.75	Additional income

Options numbers

Net premium:      -$1,300 + $500 + $300 + $100 = -$400
Net theta/day:    -$3.25 + $1.50 + $1.00 + $0.75 = +$0.00
Net delta:        (-84) + 18 + 12 + (-4) = -58 SOL
                  (with adjustments: ~-81 SOL)

Notice: net theta is ~$0, not −$3.25

Add up all four positions and theta balances out to ~$0 per day — the three short options return as much as the long Put costs. Which means theta is not your daily cost.

The real cost is the net premium: −$400 over 120 days. In other words:

-$400 ÷ 120 days = ~-$3.33 per day

That is what the insurance actually costs per day. The tables below use the rounded −$3.25/d — a number that nearly coincides with the long Put's theta, but means something different: it is the cost of insurance, not time decay.

Daily Carry — how much you earn every day

Item	Per day	Per year
LP Fees	+$5.95	+$2,172
Insurance cost (amortized net premium)	-$3.25	-$1,186
Debt interest (USDC Kamino)	-$0.77	-$282
Net carry	~$1.93	~$704

Why are the numbers lower than before?

In spring 2026 we switched the strategy's borrowing from USDY to USDC. USDY itself paid ~4.5% APY, so the effective debt cost was nearly zero. USDC is charged the full Kamino rate (~6%), so daily carry dropped from $2.11 to $1.93. In exchange — higher liquidity and faster exits during a crisis.

Important

These figures depend on portfolio size, SOL price, and market conditions. Actual results may vary.

Net Delta and protection

Here are all the strategy's positions at a glance — like a scale:

Portfelio delta sudėtis

Collateral (Kamino)

+126

SOL

LP position (Orca)

+11.5

SOL

Options (hedge)

-81

SOL

Neto delta

+56.5

SOL

Directional exposure: 45%📈 Bull kryptis

This means:

55% of the portfolio is protected from a drop
45% remains dependent on price — you earn from growth
This is a balance between safety and profit potential

The LP side of the scale is not fixed

+11.5 SOL only holds while the price is inside the range (roughly $80). At the upper bound ($88) the LP position is 100% USDC, so its delta is ~0 and net delta becomes 126 + 0 − 81 = +45 SOL. If the price falls to $64, the LP turns into ~42.6 SOL and net delta rises to ~+88 SOL.

In other words: the deeper the price falls, the more exposed to SOL you become — which is exactly why the Put protection matters in a bear phase. Recheck this number whenever the price moves meaningfully.

Breakeven — how much LP needs to earn

For the strategy to be profitable, LP has to earn enough to cover its costs:

Daily costs = Theta + Debt interest
            = $3.25 + $0.77
            = $4.02 per day

LP earns:      $5.95 per day
Coverage:      5.95 / 4.02 = 1.48x  (earning 48% more than needed)

Metric	Value	Good?
Minimum LP yield	~46% per year	Below this — loss
Current LP yield	~68% per year (instantaneous)	Sufficient
Coverage	1.48x	Healthy buffer

⚠️

If LP yield dropped below ~46%, the strategy would start generating a loss. The platform monitors this in real time.

What happens at different prices (over 120 days)

Scenario	SOL price	Collateral	LP	Options	Carry	Total
-60%	$35.20	-$6,653	-$2,150	+$4,800	+$232	-$3,771
-30%	$61.60	-$3,326	-$800	+$2,400	+$232	-$1,494
-20%	$70.40	-$2,218	-$200	+$1,400	+$232	-$786
0%	$88.00	$0	$0	-$400	+$232	-$168
+20%	$105.60	+$2,218	$0	-$500	+$232	+$1,950
+50%	$132.00	+$5,544	$0	-$600	+$232	+$5,176
+100%	$176.00	+$11,088	$0	-$1,800	+$232	+$9,520

3 strategy variants — start from your own level

Strategy B isn't "all or nothing." There are 3 variants, each with a different level of complexity and income. Start with Mini, grow into Full.

🌱 MINI variant — Lending only (Layer 1)

Parameter	Value
Layers	Layer 1 only (Kamino or Aave)
Minimum amount	From $100
Time per week	~5 min
Complexity	⭐ Easy
Expected APY	~5-7%
Daily Carry ($1k portfolio)	~$0.16/d
Protection	LTV buffer only (30%)

Who it suits: Beginners, small capital, wants to understand the collateral mechanism without complexity.

How to start:

1 SOL → Kamino as collateral
Borrow at 30% LTV (e.g., 30 USDC against 100 USD worth of SOL)
Use the USDC for something (another project, a purchase, or just hold it)
Check LTV weekly — if it approaches 45%, repay debt

Drawback: Low yield (5% APY). But it's the simplest way to understand DeFi lending.

🌿 MEDIUM variant — Lending + LP (Layer 1+2)

Parameter	Value
Layers	Layer 1 + Layer 2 (Kamino + Orca)
Minimum amount	From $1,000
Time per week	~30 min
Complexity	⭐⭐ Medium
Expected APY	~15-25%
Daily Carry ($1k portfolio)	~$0.55/d
Protection	LTV buffer + LP range management

Who it suits: After Mini, wants higher income, can spend time managing the range.

How to start:

Start like Mini: SOL → Kamino, borrow USDC
Keep half the USDC in a safe (for a crisis)
Put the other half → Orca single-sided LP (-28% range)
Monitor: LTV + LP range + harvest fees weekly
Reinvest fees into collateral (compound)

Drawback: No protection against a large drop. If SOL falls 50% in a day, you can suffer serious losses.

🌳 FULL variant — all 3 layers (Layer 1+2+3)

Parameter	Value
Layers	Layer 1 + Layer 2 + Layer 3 (Kamino + Orca + Deribit)
Minimum amount	From $10,000
Time per week	~1-2 hrs
Complexity	⭐⭐⭐ Hard
Expected APY	~6-9% (after all costs)
Daily Carry ($11k portfolio)	~$1.93/d
Protection	LTV + LP + Put options (full hedge)

Who it suits: Advanced users, large capital, wants protection against a bear market.

How to start: This is the full strategy described in the rest of this lesson.

Drawback: Complex. Requires understanding options, IV, theta, and crisis management. This is not a strategy for beginners.

Growth path

Mini ($100-1k)  →  Medium ($1k-10k)  →  Full ($10k+)
   ↓                  ↓                    ↓
 1 mo practice     3 mo deepening       6 mo preparation

Tip: Even if you have $50,000, start with Mini. After 1 month, move to Medium. After 3 months, consider Full. Jumping straight into Full = mistakes = lost money.

4 market regimes — how the strategy reacts

Each layer behaves differently under different market conditions. Here's how Strategy B performs over a 4-month (~120-day) cycle:

🐻 BEAR market (SOL -30% to -60%)

Layer	Behavior	Profit/Loss
Layer 1 (Lending)	Collateral value falls, LTV rises toward 60-70%	🔴 -$3,300 (-$6,650)
Layer 2 (LP)	Price falls below range — fees decrease, IL increases	🔴 -$800 (-$2,150)
Layer 3 (Options)	Long Put $90 is exercised, protection kicks in	🟢 +$2,400 (+$4,800)
Carry	LP fees decrease, theta unchanged	🟡 +$150/cycle (120d)
Net	Protection covers ~70% of the drop	🔴 -$1,550 (-$3,771)

Actions: Monitor LTV, prepare the crisis protocol (see Lesson 6-4).

😴 SIDEWAYS market (SOL ±10%)

Layer	Behavior	Profit/Loss
Layer 1 (Lending)	Stable 6% APY on collateral	🟢 +$220
Layer 2 (LP)	Ideal scenario — fees maximized, IL minimal	🟢 +$720 (4 mo)
Layer 3 (Options)	Theta decay neutral, premium -$400	🟡 -$400
Carry	Maximum	🟢 +$232/cycle (120d)
Net	LP fees exceed all costs	🟢 +$772 over 4 mo

Actions: Do nothing — the strategy works on its own. Collect fees.

🐂 BULL market (SOL +20% to +50%)

Layer	Behavior	Profit/Loss
Layer 1 (Lending)	Collateral value grows, LTV decreases	🟢 +$2,200 (+$5,540)
Layer 2 (LP)	Price above range — position 100% USDC, fees stop generating	🟡 $0 (the range must be moved up)
Layer 3 (Options)	Long Put expires worthless (-$1,300), Short Put expires worthless (+$800)	🟡 -$500
Carry	Falls with LP fees once the price is above range	🟡 up to +$232/cycle (120d), if the range is moved in time
Net	Profit from growth + carry	🟢 +$1,932 (+$5,176)

Actions: Consider partial profit-taking or moving the range upward.

🚀 MEGA BULL market (SOL +100% or more)

Layer	Behavior	Profit/Loss
Layer 1 (Lending)	Collateral 2x — LTV can be reduced	🟢 +$11,088
Layer 2 (LP)	Position 100% USDC, if the range was $64-$88	🟡 $0 (missed upside)
Layer 3 (Options)	Short Call $160 ASSIGNMENT — sell 50 SOL at $160	🟡 -$1,800 (capped upside)
Carry	Stable	🟢 +$232/cycle (120d)
Net	Large profit, but capped by the covered call	🟢 +$9,520

Actions: Assignment is a good outcome — you sold SOL at 2x the price. Move the USDC into the safe layer.

Why are 3 layers better than one?

Strategy	Yield	Max loss	Note
Just holding (HODL)	0%	-60%	No yield, full risk
Lending only	6%	-60%	Low yield
LP only	~68%	IL + drop	High IL risk
3 layers	~6.4% + price	~30% (with protection)	Balanced

Three layers let each component do what it does best. Other layers offset each one's weaknesses.

The SOL accumulation cycle — the strategy's real purpose

⚠️ Hypothetical model, not a profit guarantee

The numbers below are a hypothetical educational example, based on historical data and assumptions. This is NOT a profit forecast or guarantee. Actual results can be significantly worse or better. Crypto asset value can fall to zero. Past results do not guarantee future results.

The whole system described above is not a "static position." It's a spinning wheel that, under certain market conditions, can help accumulate more SOL.

How the wheel works

SOL accumulation cycle: SOL → Kamino → USDC → Orca LP → Deribit Put → more SOL

Each layer has its own role in the wheel

Layer	Role in the wheel	How it contributes to SOL accumulation
Kamino	Value growth	Collateral generates 6% APY + lets you borrow USDC to put to work
Orca LP	Paying for insurance	Fees cover the cost of the options. On a drop, it converts into SOL
Deribit Put	Debt repayment + buying SOL	Profit from the Put → first you repay the debt, then buy SOL cheaper with what's left

Why this works over the long run

Every bear cycle increases your amount of SOL. You don't just "survive" the drop — you profit from it. When the price recovers, your position is bigger than before the drop.

A HODL investor just waits through the drop, because there's nothing else to do. You have a plan ready and turn every drop into more SOL — that's a skill, not luck.

Concrete example: 2 cycles

Cycle 1: SOL $88 → $50 → $88

Start:            126 SOL collateral, debt $4,704 USDC
                  LP: $3,200 USDC (range $64-$88)

SOL falls to $50:
  LP fully converts into SOL (below the $64 lower bound):
    LP → ~42.6 SOL
    (NOT 50! The average fill price is √(64 × 88) = $75.05,
     because a concentrated position buys gradually across the
     whole range, not all at $64. $3,200 / $75.05 = 42.6)
    LP USDC balance = $0

  Put profit: +$2,400 USDC
  This is the ONLY USDC source

  Debt situation:
    Debt: $4,704
    Have: $2,400 USDC (from the Put)
    Short: $2,304

  DECISION: repay $2,400, leave the remaining debt ($2,304)
    LTV with the new SOL amount:
    (126 + 42.6) = 168.6 SOL × $50 = $8,430 collateral
    LTV = $2,304 / ($8,430 × 0.90) = ~30% — safe ✅

Price returns to $88:
  Collateral: 168.6 SOL × $88 = $14,837
  Debt: $2,304
  Repay debt by selling: $2,304 ÷ $88 = ~26 SOL

  Remaining: 168.6 - 26 = ~143 SOL

Gain: +17 SOL (+13%)

Why don't we sell SOL at the bottom?

When the price is $50, we don't sell SOL to repay the debt — because that would mean selling at the worst possible price. Instead, we leave part of the debt (LTV is still safe at ~30%, against a 75% liquidation threshold for SOL collateral) and wait for the recovery. When the price comes back, we repay then. This is the core rule: never realize a loss at the bottom if LTV allows you to wait.

Cycle 2: SOL $88 → $60 → $120

Start:            143 SOL (more than before!)
                  Debt: ~$5,000 USDC, LP: ~$3,500 USDC

SOL falls to $60:
  LP → SOL:       fully converted (~47 SOL)
                  ($3,500 at an average fill of ~$75)
  Put profit:     +$2,600 USDC
  Repay from Put: $2,600, remaining debt $2,400
  LTV: $2,400 / (190 × $60 × 0.90) = ~23% — safe ✅

Price rises to $120:
  Repay $2,400 debt: $2,400 ÷ $120 = 20 SOL
  Remaining: 190 - 20 = ~170 SOL
  Portfolio value: 170 × $120 = $20,400

Over 2 cycles: from 126 SOL → ~170 SOL, from $11,088 → ~$20,400.

HODL investor: 126 × $120 = $15,120. You: ~$20,400. Difference +35%.

It's not the number, it's the discipline

+35% over HODL across 2 cycles is a hypothetical model result, not a promise or a typical outcome. The model assumes every drop recovers; in reality SOL fell to $60 in 2026-06, and −76% from its high over 12 months. The value here isn't the number itself — it's that on every drop you act according to a plan instead of panicking and selling at the bottom. Actual results depend on the market and can be worse.

Sideways market — the wheel still spins

Even when the price doesn't move (±10%), the wheel keeps working:

LP fees:           +$5.95/day
Insurance cost:    -$3.25/day
Debt interest:     -$0.77/day
─────────────────────────────
Net carry:         +$1.93/day = ~$704/year

This carry is the "reward for patience" —
you earn while waiting for the next cycle.

When the wheel stops — and how you manage every stopping point

SOL never recovers (→ $0) → this is why we only spin the wheel with an asset we believe in long term; you choose a size you could withstand even in the worst case
Liquidation (the SOL collateral threshold is 75%, during a flash crash) → the Put $90 protection and the LTV buffer (starting ~42%, liquidation price ~$58 = ~34% of room below $88) buy you time; you track LTV per the 6-4 protocol so you can react in time. The buffer is not theoretical: on 2026-02-05/06 SOL fell 18% in two days and Kamino saw 55,649 liquidations worth $19.4M
LP fees too low (below the ~46% breakeven APR) → the 1.48x coverage is monitored in real time; if it drops below, you move the range or reduce the position instead of waiting out the loss
Not sticking to the plan (panic) → a weekly checklist and pre-written actions turn the decision into a procedure, not an emotion

Every risk has a solution. You don't fear it — you learn to manage it, which is why the wheel keeps spinning as long as you're the one managing it.

Wheel vs HODL — the final comparison

	HODL	SOL accumulation cycle
During Bear	Just wait	Buy cheaper from Put profit
During Sideways	Earn nothing	+$1.93/d carry
During Bull	Earn from growth	Earn + hold more SOL
After 2 cycles (example)	126 SOL	~170 SOL
Requires discipline	No	Yes — weekly checklist
Requires knowledge	Minimal	This whole school

Next step: What happens when the market suddenly moves? Crisis management protocols will prepare you for the worst-case scenario.

Quick check

What is Strategy B's Daily Carry in the example portfolio (126 SOL, SOL price $88)?

Practice task

0 / 5

Choose your variant: Mini, Medium, or Full

The biggest beginner mistake is jumping straight to Full. This task is paper-only: a reasoned choice and a few calculations, no real trades (~20 min).

This is learning, not investing — use only small amounts you treat as tuition.

You just grasped how the three layers work together, and chose your level with a breakeven calculation — this is no longer "some strategy you heard about somewhere," but a system you understand down to the last dollar per day.

Strategy A Crisis Playbook