How to use Lulo for savings on stable coins
What is Lulo (@uselulo) and how to use it
Self described as “The modern way to grow your wealth”, but what is Lulo? They just updated their site this past week and introduced some new features.
From their About Section on X
Lulo offers a way to earn sustainable interest on your digital dollars in DeFi, without the risks of price volatility and market fluctuations.
We've integrated and source the best rates from @KaminoFinance, @MarginFi, @DriftProtocol, @Solend, rerouting user deposits every 60 minutes if better rates become available.
My Experience
I’ve been using it since Aug 24 and really enjoy the simplicity of it. I had liquid funds just sitting in a checking account that weren’t earning anything and moved some over to put to work for me. You can see my historical monthly rates going back to August. I have been using defi for years and felt comfortable, but you should always weigh your risks before deploying any capital.
Lulo (@uselulo) is a way to save and earn yield on stablecoins on @solana without having to worry about chasing down and moving your funds between platforms. They move the money for you, finding the best rates every hour. You also earn points from any sites who are using a point system, such as @kamino, @marginfi or @DriftProtocol, and when they open up claims, you can get your rewards right in Lulo.
Lulo creates a new account for you, so your points will not combine with any you may already be taking part of. I’ve been using Kamino since the first season and still do, but my points are separate.
You can deposit USDC, PYUSD, USDS, USDT, FDUSD or SOL into your account. It’s a great way to park some profits or to use as savings account that is onchain.
They have 3 options (for USDC) when choosing how to deposit your funds. Can can deposit other stable coins using the Custom option.
Custom - This is how Lulo worked before and it moves your funds based on the best rates. You can choose to split your funds between more than one protocol at a time, on your favorite platforms (maybe ones with points) or let them decide.
Protected (USDC only currently) - You get a lower rate (4.62% over the last 30 days), but they guarantee the safety of your funds. You are paying some of the yield to the boosted people for insurance on your funds. If there was a defi protocol hack, your funds would be protected.
Boosted (USDC only currently) - You take on higher risk in trade for covering the protected funds. Rates were at 8.43% on boosted compared to 4.62% for protected funds.
At the time of writing, here are the comparable USDC rates offered.
Custom: 7.18%-5.11% (depending on the platform in use)
Protected: 4.62%
Boosted: 8.43%
Protected: 4.62%
Boosted: 8.43%
This allows you to choose what strategy you feel most comfortable using and with whatever stable coin you’d like to deposit. I’ve had times that SOL dipped and I pulled some funds out, bought the dip and then replaced my stables (with gains) back into LULO after and have done that a few times.
It can be both a great way to build wealth by putting your money to work for you with the least amount of struggle and having funds available if you decide to ape on a dip. Here's a chart comparing some other routes for saving digitally.
When PYUSD came out, Paypal was really pushing its adoption, so the rates were great for a while. Sky did something similar for a month or so with USDS.
If you are looking for a simple way to make money on your dollars, Lulo (@uselulo) is worth checking out to see if it's a good fit for you. Always do your own research before making financial decisions.
Official Links
Disclaimer: Not Financial Advice
The information provided in this article is for educational and informational purposes only and should not be construed as financial, investment, or legal advice. Defi and Cryptocurrency investments can involve significant risks, including the risk of total loss. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any financial losses or damages resulting from actions taken based on the information presented in this article. Always invest responsibly and within your financial means.