xStocks Research

xStocks is a platform that tokenizes real-world U.S. stocks and ETFs on the Solana blockchain, enabling 24/7 trading without traditional market hour restrictions. Each xStock token, issued by Backed Finance, is backed 1:1 by the underlying asset, ensuring price parity and redeemability. Users can trade these tokens on centralized exchanges like Kraken and Bybit or decentralized platforms like Raydium and Jupiter, with no KYC required for DeFi interactions. The platform supports fractional investing, starting at $1, making US equities accessible to investors globally. xStocks also integrates with Solana’s DeFi protocols, enabling users to utilize tokens for liquidity provision, lending, or collateralization to earn yields. The Weekly Wizdom team here has broken down how to add liquidity to xStocks pools on Solana, such as SOL-TSLAX or SOL-NVDAX, and to find the best places for yield farming.

Adding Liquidity to xStocks Pools on Solana

You can provide liquidity to xStocks pools, such as SOL-TSLAX and SOL-NVDAX, on decentralized exchanges (DEXs) within the Solana ecosystem. Recent posts on X indicate that these pools are primarily hosted on Raydium, Orca, Meteora, or Phoenix. Here’s how you can proceed:

1. Raydium: Raydium is a leading AMM on Solana that supports xStocks liquidity pools. Visit raydium.io, connect your Solana wallet (e.g., Phantom or Solflare), and navigate to the "Liquidity" tab. Select the SOL-TSLAX or SOL-NVDAX pool, deposit equal values of both tokens (50/50 ratio), and confirm the transaction to receive LP tokens. These LP tokens can then be staked in Raydium’s farms for additional yield (e.g., RAY tokens or trading fees).

Raydium’s integration with Serum’s central limit order book (now replaced by other mechanisms post-FTX) provides deep liquidity and high trading volumes, which could align with your expectation of $TSLAX and $NVDAX doing “crazy volume.” It also offers competitive APYs and supports memecoin-driven activity, which could boost pool activity.

2. Orca: Orca is another user-friendly DEX on Solana. Visit orca.so, connect your wallet, and select the SOL-TSLAX or SOL-NVDAX pool under the "Pools" section. Deposit the token pair, and you’ll receive LP tokens that can be staked to earn trading fees (0.3% per trade, with 0.25% allocated to LPs after the ORCA token distribution). Orca’s “Whirlpools” feature enables concentrated liquidity, potentially offering higher yields.

Orca is recognized for its simplicity and transparency, making it an ideal choice for new DeFi users. It may offer lower yields than Raydium for some pairs, but it has a strong community and environmental focus.

3. Meteora: Meteora supports xStocks pools and offers Dynamic Liquidity Market Maker (DLMM) pools for concentrated liquidity. Visit their platform, connect your wallet, and check for SOL-TSLAX or SOL-NVDAX pools. Meteora’s Dynamic Vaults can automatically deploy idle capital to lending protocols for additional yield.

Its dynamic fee adjustments and integration with lending protocols, such as Kamino, make it a strong choice for maximizing returns, especially for stable or high-volume pairs.

4. Phoenix: Phoenix is a central limit order book (CLOB)-based DEX, which may host xStocks pools. Check their platform for pool addresses and deposit instructions, as mentioned in community posts.

Its CLOB model offers low fees and fast execution, which could be ideal for high-volume trading pairs like $TSLAX and $NVDAX. However, liquidity provision may be less automated than AMM-based DEXs.

With all that being said, remember:

• Ensure you have a Solana-compatible wallet with SOL for gas fees (fees are low, ~$0.02 per transaction).

• Obtain SOL and either $TSLAX or $NVDAX via swaps on Raydium, Orca, or other DEXs. Check pool availability on the respective platform or xStocks’ official channels (e.g., Discord or X announcements).

• Follow the DEX’s liquidity provision interface to deposit tokens in the required ratio (typically 50/50 for AMMs).

• Stake your LP tokens in the platform’s farms or vaults to earn additional rewards.

Best Places for Yield Farming

To maximize yield on SOL-TSLAX and SOL-NVDAX pools, consider the following platforms based on their features and potential returns:

1. Raydium - Raydium offers competitive APYs (e.g., 40.51% APR for certain pools, such as RAY-SOL) through trading fees (0.22% to LPs) and RAY token rewards. Fusion Pools may provide dual-yield rewards (e.g., RAY and partner tokens). Given the expected high volume for $TSLAX and $NVDAX, Raydium’s deep liquidity and memecoin-driven activity could result in high fee generation.

2. Meteora - Meteora’s DLMM pools and Dynamic Vaults can yield higher returns by concentrating liquidity and auto-compounding through lending integrations (e.g., Kamino, Hubble). APYs vary but can be boosted by dynamic fees and token emissions.

3. Orca - Orca’s yields are typically lower (e.g., 0.25% trading fees to LPs), but Whirlpools allow concentrated liquidity for higher efficiency. Yields for niche pairs like SOL-TSLAX may vary (historically, 100% or more for some pairs, such as OXY-RAY).

4. Kamino - Kamino automates liquidity provision with auto-rebalancing and auto-compounding, potentially offering high yields for $TSLAX or $NVDAX pools if available. The historical TVL of $8M suggests growing adoption.

5. GooseFX - GooseFX’s Single-Sided Liquidity (SSL) pools eliminate impermanent loss by requiring only one token (e.g., SOL or $TSLAX). Yields depend on pool type (Stable, Primary, Hyper) but can be competitive.

WW Recommendation:

• Best for High Volume and Yield: Raydium is likely the best choice for SOL-TSLAX and SOL-NVDAX due to its high TVL, deep liquidity, and potential for high trading fees driven by xStocks’ expected volume. Its Fusion Pools and integration with Solana’s ecosystem make it ideal for capitalizing on $TSLAX/$NVDAX’s TradFi-like potential.

• Best for Automation and Optimization: Meteora or Kamino if you prefer automated strategies and concentrated liquidity to maximize yields while managing impermanent loss.

• Best for Simplicity: Orca is ideal if you’re new to DeFi and want a straightforward interface, although yields may be lower.

• Risk Consideration: Impermanent loss is a significant risk for volatile pairs, such as SOL-TSLAX or SOL-NVDAX. Single-sided options, such as those offered by GooseFX or concentrated liquidity on Meteora/Orca, can mitigate this. Always research pool performance and APYs on platforms like solanacompass.com or defillama.com.

Raydium’s infrastructure and liquidity make it the top choice, with Meteora as a strong alternative for advanced yield optimization. Please note that it is essential to double-check pool availability.