@KonaDeFi has published a four-step leveraged yield strategy on Kona Lend, the

@KonaDeFi has published a four-step leveraged yield strategy on Kona Lend, the lending arm of the konadefi protocol on abstractchain, targeting returns above 10% APY using PENGU tokens.

The strategy works as follows: users first supply PENGU to earn a 1.66% combined rate (0.12% base plus 1.54% bonus), then borrow USDT against that collateral at a net cost of 5.02% (2.97% base plus 2.05% bonus). The borrowed USDT is swapped to USDC.e, which is then re-supplied to Kona Lend to capture a 9.87% combined rate (6.04% base plus 3.83% bonus). The net effect of the full loop pushes total yield past the 10% threshold.

konadefi is a full-stack DeFi protocol built on abstractchain by KittyPunch, offering trading, lending, and yield products designed for consumer audiences. Kona Lend is the protocol's lending primitive, allowing users to supply and borrow assets with base rates supplemented by bonus incentives.

This strategy post follows recent activity from @KonaDeFi highlighting other yield opportunities on the platform, including USDC lending at 12% APY and general supply rates of up to 8% APY ahead of the protocol's official launch.

Users considering the strategy should note the inherent risks of leveraged lending positions, including liquidation risk if PENGU collateral value declines.