Capital efficiency is the core of DeFi, even on Testnets.

Turn one bag of $MON into an on-chain flywheel with Magma’s liquid staking + looping strategy.

Here's how↓🧵

First off, @MagmaStaking is one of the leading liquid staking platforms

within the Monad ecosystem.

Think of them as the router of the Monad stack: liquidity flows in, partners tap it, rewards flow back, users grab them - everyone is happy. On Magma, users can stake $MON → get $gMON (liquid receipt token).

Interestingly, they have more than 27 protocols plugged into their ecosystem, from lending to borrowing to infrastructure. This allows users to maximize staking rewards within the ecosystem.

That brings us to the looping strategy and how to take advantage of it.

Here's a quick visual on how it works:

$MON → stake → $gMON → lend → borrow $MON → stake again → … 🔁

More cycles = more yields.

Step 1: stake $MON here https://t.co/3BmgNXVnvz to receive $gMON

Step 2: collateralize that $gMON into a Monad lending market

Step 3: borrow $MON against your $gMON position.

Step 4: re-stake the borrowed $MON back on Magma to mint more $gMON

Step 5: LP $MON and $gMON on one of their DEXes to end the loop.

rinse and repeat, that's it.

We'll keep looping till we max it out.