Texture Creator Competition: Borrowing Strategies Competition

Texture is Solana’s leading p2p borrow-lending protocol, allowing users to trade token volatility and earn on price movements in any direction via p2p loans.

Learn more about how Texture works here.

About the Bounty

This current bounty is for content creators to do an overview of a strategy a user can employ to generate returns on Texture as a borrower.

The format of the overview is open – use any or all of video, animations, graphics, screenshots, text and voiceover to put together a thread or a video with the borrow strategy walkthrough, and post it on Twitter.

Important: the submission has to be about generating returns as a borrower, which means strategies about lending, as well as strategies that are focused around other than profit making use cases (i.e. managing portfolio risk, liquidity management, etc.) will not be considered for this bounty.

In your submission, please include:

• Description of the strategy you are showcasing explaining its financial rationale

• Step by step guide on how to deploy and monitor this strategy with description of which parameters are important to consider (e.g. LTV of the offers, volatility of the token, etc.)

• Actual (or expected) financial result of your borrowing strategy

Extra credit will be given to:

• Submissions where the creator has actually deployed the strategy him/herself with some capital and that showcase the quantitative results (i.e. generated returns) of the strategy. This can be done with as little as $50-100 USDC equivalent or less of capital, % return is what’s important here as opposed to absolute returns

• Submissions that include a guide on how to farm points and rewards of other protocols as part of the strategy (please note that as there has recently been a number of vSOL farming strategies published, these will bear no extra credit) 

Some strategy ideas are:

• Simply buy a token and take a high LTV loan against it. If the price of the token drops over 7 days, use the loan proceeds to buy more of the token than you initially bought – this is your return.

• No liquidation leverage – buy a token, take a USDC loan against it – use the USDC to buy more of the token – repeat. This way you are building a leverage long position, and you cannot be liquidated during the 7 day long period. If the token increases in price over the 7 days – you will make leveraged returns (you can exit/unwind/take profit at any point during the 7 days). However, if the token price falls, you will also make a leveraged/larger loss as compared to a simple long position.

• Volatility play: use USDC to borrow token X (“loan A”), and immediately use the proceeds (i.e. X tokens you just borrowed) to borrow USDC against them (“loan B”). With this set up you will win / generate returns if there is a lot of market volatility in either direction.

  • If token X dumps enough, you can use part of the USDC you borrowed in loan B to buy back enough of the X tokens to repay loan A with interest, and unlock your initial investment as well as leaving part of the USDC borrow proceeds from loan B (this is your profit)

  • If token X pumps enough, you can repay loan B, and then sell the unlocked X tokens that you borrowed in loan A to buy more USDC than you initially had.

  • You can further enhance this strategy by:

    • Using Jupiter limit orders to automate your take profits (+ get Jupiter limit order usage potentially giving you points for their future airdrop)

    • Use any of the pool-to-peer lenders to borrow (assuming you have large enough deposits there) X tokens in the amount of your borrow under loan A / collateral under loan B. Set a Jupiter limit order to sell these tokens for an amount of USDC that would allow you to repay loan B + leave some profit for you. This way you are again using Jupiter plus you are earning Kamino/Marginfi/Solend points

Submission Requirements:

• Tag @texture_fi in your Twitter post

• All the content submitted should be in English

Judging Criteria:

• Quality and reach of your Twitter post

• How clear and engaging the submission is

• Additional credit for demonstrating your borrowing strategy on a live example

• Additional credit for adding multiple protocols points farming to your strategy

Rewards

🥇 First Prize: 600 $USDC

🥈 Second Prize: 300 $USDC

🥉 Third Prize: 100 $USDC 

Resources

• Platform: https://texture.finance

• Docs: https://texture.gitbook.io/texture

• Knowledge base: https://dour-jester-ec0.notion.site/Texture-Knowledge-Base-b47ceee028f34c55b07f7f0459abad26

• Twitter: https://x.com/texture_fi