yield-analysis Checked

Where:

• fee_apr: annualized fee income as fraction of position value
• emission_apr: annualized emission income at current token price
• emission_depreciation: expected decline in emission token price (0.0 to 1.0)
• il_cost: expected impermanent loss as annualized rate (see impermanent-loss skill)
• gas_cost: transaction fees for deposits, withdrawals, claims, compounds
• rebalancing_cost: for CLMM positions, cost of rebalancing out-of-range positions

### Example: SOL-USDC Pool

Nominal APY displayed:    45%
Decomposition:
  Fee APR:               18%
  Emission APR:          30%  (RAY token rewards)
  Emission depreciation: 40%  (RAY down 40% over 30d)
  Effective emission:    18%  (30% × 0.6)
  IL cost (estimated):   12%  (SOL volatile against USDC)
  Gas + rebalance:        1%

Real yield = 18% + 18% - 12% - 1% = 23%

The 45% nominal yield is really 23% after accounting for all factors.

Fee APR Calculation

### Constant-Product Pools

fee_apr = fee_rate * daily_volume / tvl * 365

For a pool with 0.25% fee rate, $2M daily volume, and $10M TVL:

fee_apr = 0.0025 * 2_000_000 / 10_000_000 * 365 = 18.25%

### Concentrated Liquidity (CLMM) Pools

CLMM fee income depends on your position range relative to trading activity:

# Simplified — see lp-math skill for full CLMM math
fee_apr = fee_rate * daily_volume_in_range / position_liquidity * 365

Tighter ranges earn higher fees per dollar deployed but go out of range more frequently, requiring rebalancing.

### Per-LP Share

your_share = your_liquidity / total_pool_liquidity
your_daily_fees = total_daily_fees * your_share

Emission Sustainability

### The Death Spiral Pattern

1. Protocol launches with high emission rewards → attracts LPs

2. TVL grows → yield per LP drops → protocol increases emissions

3. LPs farm and dump emission tokens → token price drops

4. Lower token price → lower USD-denominated yield

5. LPs leave → TVL drops → protocol increases emissions further

6. Spiral continues until emissions stop or protocol fails

### Sustainability Metrics

# Protocol P/E ratio
pe_ratio = fully_diluted_valuation / annual_protocol_revenue

# Revenue-to-emission ratio (> 1.0 is sustainable)
sustainability = annual_revenue / annual_emission_value

# Token velocity (high = lots of sell pressure)
velocity = daily_emission_selling / daily_token_volume

**Interpretation:**

• P/E < 20 and sustainability > 1.0: Likely sustainable yield
• P/E 20-100 and sustainability 0.3-1.0: Moderate risk
• P/E > 100 or sustainability < 0.3: Emission-dependent, high risk

### Red Flags

• APY > 100% sourced primarily from emissions
• Emission token price declining consistently over 30+ days
• TVL declining while emission rate stays constant or increases
• Protocol revenue is a small fraction of emission cost
• No vesting or lockup on emission tokens

Yield Comparison Framework

When comparing yield opportunities, normalize across these dimensions:

### 1. Same-Asset Basis

Compare like for like. For SOL:

| Strategy | Expected APR | Risk Level | IL Exposure |

|----------|-------------|------------|-------------|

| Native staking | ~7% | Low | None |

| Liquid staking (mSOL) | ~7.5% | Low | Minimal |

| SOL-USDC LP (Orca) | ~15-25% | Medium | High |

| SOL lending (Marginfi) | ~3-8% | Low-Med | None |

| Leveraged yield | ~20-50% | High | Varies |

### 2. Risk-Adjusted Yield

risk_score = (
    il_risk * 0.3 +
    smart_contract_risk * 0.25 +
    emission_sustainability_risk * 0.2 +
    liquidity_risk * 0.15 +
    protocol_risk * 0.1
)

risk_adjusted_yield = net_apr / risk_score

### 3. Total Cost Accounting

Include all costs:

• Impermanent loss (see impermanent-loss skill)
• Gas fees for all transactions (deposit, withdraw, claim, compound)
• Opportunity cost (what you could earn risk-free)
• Smart contract risk premium
• Rebalancing costs (CLMM positions)

Solana Yield Sources

### Liquidity Provision

| Protocol | Pool Types | Fee Tiers | Notes |

|----------|-----------|-----------|-------|

| Raydium | CPMM, CLMM | 0.01-1% | Largest Solana DEX by volume |

| Orca | CLMM (Whirlpool) | 0.01-2% | Concentrated liquidity focused |

| Meteora | DLMM, Dynamic | Variable | Dynamic fee adjustment |

### Lending

| Protocol | Assets | Typical APR | Notes |

|----------|--------|-------------|-------|

| Marginfi | SOL, USDC, etc. | 2-10% | Points program active |

| Kamino | SOL, USDC, etc. | 2-12% | Auto-compound vaults |

| Solend | SOL, USDC, etc. | 1-8% | Established protocol |

### Staking

| Method | APR | Lock Period | Notes |

|--------|-----|------------|-------|

| Native SOL staking | ~7% | 1 epoch (~2d) | Validator selection matters |

| mSOL (Marinade) | ~7.2% | Instant | Liquid, usable in DeFi |

| jitoSOL (Jito) | ~7.5% | Instant | Includes MEV rewards |

| bSOL (BlazeStake) | ~7% | Instant | Decentralized validator set |

Data Sources

### DeFiLlama Yields API (Free, No Auth)

import httpx

# All yield pools
pools = httpx.get("https://yields.llama.fi/pools").json()

# Filter for Solana
solana_pools = [p for p in pools["data"] if p["chain"] == "Solana"]

# Sort by TVL
solana_pools.sort(key=lambda p: p.get("tvlUsd", 0), reverse=True)

Response fields: pool, chain, project, symbol, tvlUsd, apy, apyBase, apyReward, il7d, exposure.

### Protocol-Specific APIs

• Raydium: `https://api-v3.r