💱Advanced Strategies

In this section, we present a variety of strategies you can use on Sirio to earn, ranging from simple supplying to more sophisticated approaches that may involve multiple borrowing steps. This guide is not financial advice but rather an overview of potential strategies that could help you generate earnings. To promote caution, we will also assign a risk-level label to each strategy.

Name	Risk-Level	Description
Liquid Staking	Low	At our launch, we listed two Liquid-Staking Tokens (HBARX and XSAUCE), and we plan to add more in the future. This strategy allows you to earn additional passive income without the risk of impermanent loss typical of DEXes. Here’s an example: You own HBAR tokens, which you stake on Stader to receive HBARX at an approximate APR of 5.5%. You then deposit your HBARX into Sirio, assuming an APR of 5%. Your total net annual APR would be: Total_APR = Stader_APR + Sirio_APR = 5.5% + 5% = 10.5%.
Short Position	Medium	If you believe a token will lose value, you can execute the following steps: Deposit any asset (we recommend USDC to reduce volatility and increase the Loan-To-Value ratio, thus allowing you to borrow a larger amount while decreasing liquidation risks.). Borrow the token you want to short. Immediately sell the borrowed token for USDC. Once the token reaches your target price, use the USDC to repurchase the shorted token. You'll be able to buy more of the token if its price has dropped. Repay your loan with the repurchased tokens at the lower price. The remaining tokens after repaying your debt represent your profit.
Long Position	Medium	If you believe a token will increase in value, you can follow these steps: Deposit any asset (we recommend USDC to reduce volatility and increase the Loan-To-Value ratio, allowing you to borrow a larger amount). Borrow USDC. Immediately swap the borrowed USDC for the token you want to go long on. Once the token reaches your target price, swap it back to USDC. If you were correct, you will have more USDC than you initially borrowed. Repay your USDC loan. The remaining USDC represents your profit.
Leveraged Short	High	In order to leverage your short position, you just need to iterate the Short-Position process. The more times you repeat the process, the higher is the liquidation risk: Deposit an asset as collateral (e.g., USDC). Borrow the token you want to short. Immediately sell the borrowed token for USDC. Repeat the process: deposit the USDC again, borrow the token you want to short again, immediately sell it for USDC.
Leveraged Long	High	In order to leverage your long position, you just need to iterate the Long-Position process. The more times you repeat the process, the higher is the liquidation risk: Deposit an asset (e.g., USDC) into the lending protocol. Borrow another asset (e.g., USDC again) using your deposit as collateral. Swap the borrowed USDC for the token you want to go long on. Repeat this process multiple times to further increase leverage: deposit the token just swapped in the protocol again, borrow USDC again, immediately swap it for the token you wonder to go long on again.