Nitron Strategies

Here are some strategies you can use with Nitron to generate more yield.

Learned how to trade perps with Nitron and are looking for advanced Nitron strategies? Here you go.

Nitron Strategy #1: Levered Long Positions

If you are holding an asset that you are bullish on and it is available as collateral on Nitron, you can gain leveraged exposure to that asset by using Nitron.

Here's an example with TIA and milkTIA:

  1. Deposit that TIA or milkTIA to Nitron and enable it as collateral

  2. Borrow USDⒼ, a group token that is 1:1 backed on-chain by different USDC

  3. Long TIA-perp market on Demex with leverage, or withdraw USDⒼ and swap to TIA on Osmosis

You have now obtained a leveraged position on your preferred asset.

Nitron Strategy #2: Leveraged Staking

Proof-of-Stake assets usually have staking rewards and a liquid-staked version that accrues the staking reward into the token itself.

One example is TIA earns around 14% staking APR, and milkTIA accrues this staking reward into the milkTIA, growing in value against TIA as time passes.

Using Nitron, you can leverage the staking reward you receive.

  1. Deposit milkTIA (or any other LSTs) to Nitron and enable it as collateral

  2. Borrow TIA (or any other native tokens that can turn into an LST)

  3. Stake TIA into a liquid staking provider such as milkyway to receive milkTIA

  4. Deposit milkTIA back into Nitron

  5. Repeat steps 2 to 4

As you are depositing and borrowing a pegged asset, the value of your collateral and loan will rise and fall in tandem with the price of TIA which makes liquidations less likely.

Additionally, as long as milkTIA does not depeg and the borrowing rate for TIA is not higher than milkTIA's innate yield, your health factor should gradually increase over time.

Nitron Strategy #3: Stablecoin Yield Farming

Occasionally, the lending rate for stablecoins such as USDⒼ or the incentives for providing USC-USDⒼ spot liquidity can be attractive. Here's how you can earn from this high lending rate using Nitron.

  1. Deposit your preferred asset (bonus if it is yield-bearing and stable) as collateral

  2. Mint USC when it has low interest rate and sell it into USDⒼ

  3. Deposit USDⒼ into Nitron, or deposit it into USC-USDⒼ spot LP to earn the high yield

As long as you monitor your health factor, you can earn more yield on your existing asset. You can end this strategy by reversing the steps you took.

Nitron Strategy #4: Delta-neutral Yield Farming

By depositing an LST asset such as milkTIA and shorting its native asset on a perp-market, you are achieving a delta-neutral position while earning from the staking yield of your LST.

Here's an example of this using milkTIA:

  1. Deposit an LST into Nitron such as milkTIA and enable it as collateral

  2. Mint USC and sell into USDⒼ or directly borrow USDⒼ to obtain some margin for perp trading

  3. Go to TIA-perp and short an equivalent amount that you deposited into Nitron

  4. As bull markets tend to have positive funding rate, you are earning additional funding fee as well

You are now delta-neutral while earning the staking rewards of your LST and potentially funding fee as well. You can end this strategy by reversing the steps. It is still important to monitor your liquidation price and health factor.

Nitron Strategy #5: Capital-Efficient Airdrop Farming

Airdrops are usually given to stakers, however, this usually requires you to buy an asset to stake it, exposing yourself to the price volatility of the asset.

if you do not wish to buy an asset for airdrop farming, it may be better to borrow that asset instead. There are many ways you can do this, here's one way you can airdrop farm without buying an asset.

  1. Deposit your preferred asset (bonus if it is yield-bearing and stable) as collateral such as milkTIA

  2. Borrow native assets that you can stake such as TIA

  3. Stake them to qualify for potential airdrops

Nitron Strategy #6: Borrow Assets to Liquidate Bad Debts

Nitron has a decentralized liquidation platform where you can liquidate bad debts to earn a liquidation bonus while ensuring the health of the platform.

  1. Head over to Nitron Liquidations and you can see which positions you can liquidate

  2. You require their loan asset in order to liquidate them

  3. You can borrow the asset on Nitron if you don't have it, and use it to liquidate others

  4. This earns you a liquidation bonus by getting more than the loan you return

  5. You can sell their asset on the open market into your borrowed asset and return it while having some leftovers from the liquidation bonus as profit

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