MATIC is known for being Polygon network’s native token. It is mainly used to pay the gas fees. Yet, imagine a strategy that not only allows you to engage in MATIC staking but also significantly enhances your earning potential.

We are excited to announce the “Boosted MATIC Staking (10x)” basket that lets you do just that by utilizing Stader’s liquid staking MATIC. The expected APY for the Boosted “MATIC Staking (10x)” basket stands at 25%.

Its underlying strategy revolutionizes the MATIC staking experience by leveraging up to 10x in MATICX (Stader’s staked MATIC) through the use of Balancer flash loans and the lending prowess of AAVE. It amplifies the standard staking rewards, offering a new vista in MATIC staking that blends traditional rewards with enhanced earning opportunities, aligning perfectly with the advancing tide of decentralized finance on the Polygon network.

The expected APY for the Boosted MATIC Staking (10x) stands at 25%.

Denomination and Protocols Involved

The denomination of the basket is MATIC. The strategy requires the users to deposit MATIC on the Polygon. It integrates protocols like Stader, AAVE, Balancer, and Uniswap/Curve. Users can choose between Balancer and Curve pools based on which offers better conditions during implementation.

The Strategy Behind the Yields

• MATICX by Stader: The core of the yield in this strategy stems from Stader MATICX staking rewards. Stader’s platform offers a robust mechanism for generating staking rewards, making it an ideal source for this strategy.
• Leveraging Loans: A 10x leveraged MATICX position is created using Balancer flash loans and AAVE borrowing.

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Comparison between Stader’s MATICX and Boosted MATIC Staking

With Stader’s MATICX, the staking rewards usually fluctuate between 5–5.5%. On the other hand, the backtesting showed the possible APY for the Boosted MATIC Staking (10x) Basket at 25%.

Risks

There are two key risks involved with this basket. They are the following:

• MATICX needs to maintain its peg to MATIC. If for some reason, MATICX tokens lose their pegs, the position will be worth less compared to it. The quant team plans to implement a bot to protect users from the depeg. In case of a depeg, the bot will liquidate the position and save the users from acquiring a significant loss.
• If AAVE’s MATIC borrow rate increases, the strategy will be unprofitable and need to be closed. The quant team will be actively monitoring to stop this behavior. It also plans to implement a bot to stop borrowing in case of a rate increase

In the future, the implementation of the bots will make this basket even safer.

Slippage

Opening this strategy has zero slippage. However, closing this strategy requires trading MATICXs for MATICs in the open market. This can have a high slippage (0.80%) costs. At the current yield rate, a user can cover this slippage within 12 days of holding the basket tokens.

Conclusion

The Staked MATIC Basket presents a unique opportunity for MATIC holders on the Polygon network. By leveraging the yields of Stader and flash loans, this strategy not only offers a simplified staking experience but also amplifies the potential yields, marking a significant advancement in automated DeFi experience.