How You Can Earn Passive Income Using Saber & Quarry Protocol

By Soumen DattaDeFi

This guide will find an easy way to stake your liquid tokens using the Saber and Quarry protocols.

Saber X Quarry Protocol: Passive Income With Liquid Tokens

As Decentralized Finance (DeFi) continues to evolve, we will have new ways to earn passive income, like staking your SOL to earn liquid tokens.

In a previous article, Web3Wire discussed why liquid staking could be a better form of staking. We discussed how to liquid stake your SOL using Marinade Finance for that article. If you liquid stake your $SOL, you will receive liquid tokens that you can use to generate additional income. 

For example, if you hold some liquid tokens, you can deposit them in a liquidity pool to receive liquidity provider (LP) rewards and LP tokens. By holding LP tokens, you contribute to the liquidity pool since they represent the proportion of liquidity you have.

You can then stake the tokens you earn in liquidity pools for liquidity mining to make a return on your initial investment and the incentives you receive in the project’s native token.

Man in bed earning passive income while sleeping Premium Vector

If you realize: this can be a three-step process to grow your SOL. We have started with liquid staking our SOL to get liquid tokens. Afterward, we will deposit our liquid tokens in a liquidity pool to earn rewards and LP tokens. Additionally, we will deposit LP tokens for liquidity mining to receive additional rewards. 

In this case, we will use Sabre’s pool to deposit our mSOL liquid tokens to generate Liquidity Provider (LP) tokens. After that, we’ll know how to deposit your LP tokens again into the Quarry protocol for liquidity mining. In the following steps, we will demonstrate how to use the Saber and Quarry protocol to use the liquid tokens you received by staking SOL.

Deposit Your Liquid Tokens to Saber Liquidity Pool

1. Select the mSOL/SOL liquidity pool:

As a first step, head over to the Saber page here, where you will be taken to a page as shown below.


Then, if you scroll below, you can see a list of liquidity pools to choose from. For this case, we will go with mSOL/SOL liquidity pool.


2. Connect Your Wallet and Enter the Amount you Want to Deposit

When you choose a liquidity pool option, you will be taken to a page similar to the one below. 


Scroll down to see all the stats of the corresponding pool, which you can see below. Then, in the top right corner, you can click on ‘Analytics’ to view the pool’s statistics.


Next, you need to connect your wallet to Saber by clicking on the ‘Connect Wallet’ option. As soon as you click on that button, you will be given options to pick your preferred wallet.


We will be using the Phantom wallet, but you can use any wallet of your choice. Clicking on your desired wallet will prompt you to approve it.


3. Enter the Amount and Complete the Transaction

Once you approve your wallet by clicking ‘Connect’ as shown above, your mSOL and SOL balance will appear in the corresponding boxes as shown below.


The decision is now yours whether you want to provide liquidity with one of the assets or both. In our case, we will only use mSOL. As shown below, enter the desired amount of assets you wish to deposit in the appropriate boxes.


Once you have entered the amounts, click on the ‘Deposit’ button. After that, you will be shown a message showing the number of assets you have deposited and the amount of LP tokens you received in return.


As soon as you click ‘Confirm Deposit,’ you will be asked to confirm your transaction again on the right.


To complete your transaction, click the ‘Approve’ button. In this way, you will deposit your liquid tokens into Saber mSOL/SOL liquidity pool and earn mSOL/SOL LP tokens.

How to Deposit LP tokens for Liquidity Mining Through Quarry Protocol

1. Head Over to mSOL/SOL Farming Pool

You will receive some LP tokens as soon as you deposit your liquid tokens in the liquidity pool. As for us, we received some mSOL/SOL LP tokens. 

After this, you can stake your LP tokens in the mSOL/SOL farming pool on the quarry protocol. If you return to the Saber pool page, you can do it from the Saber page itself. The notification will ask you to go to Quarry Protocol’s mSOL/SOL farming pool, as shown below.


In another way, you may also head over to the Quarry protocol page here. If your wallet is not connected, you will need to connect your wallet by clicking on the ‘Connect Wallet’ link in the top right and following the steps previously discussed.


Click on the ‘Browse Rewarders’ button in grey, as you can see above. In the image below, you can see that you will be presented with multiple options for farming your liquid tokens. For our purposes, we will use the Saber Protocol token.


As soon as you choose Saber Protocol, you will be presented with several Farming pool options. Because we have mSOL/SOL LP tokens in our possession, we will choose the mSOL/SOL farming pool.


Click the ‘Stake’ button in gray, as shown below.


By clicking the button, you will be taken to a similar page, as you can see below. You can view the statistics regarding the Annual Percentage Yield (APY) and the value of all LP tokens staked. You could have reached this page directly if you had clicked that link on the Saber pool page. 


2 Enter Amount to Deposit and Approve the Transaction

To deposit your LP tokens, you must scroll down. Then, enter the amount you want to deposit.


To deposit your LP tokens, click on the ‘Deposit’ button. Upon clicking on the ‘Deposit’ button, you will be given options to execute the transaction, as shown below.


We will go with the ‘Deposit into Primary.’ option for our case. You will be asked to confirm your transaction from your wallet as soon as you click on the ‘Execute Option’ as shown below.


Click on the ‘Approve’ button to approve your transaction. That’s it––you have staked your LP tokens in the farming pool. Next, you can head over to the ‘Positions’ page from the Quarry home page, as shown below, to check your deposited assets. 


As you head over to the ‘Positions’ page, you will see how your tokens appreciate as you will get $SBR and $MNDE tokens as rewards that will keep increasing until you claim.


Now you understand how to put your SOL tokens to work to their full potential. In general, liquidity mining is a subset of yield farming, which is a subset of staking. These solutions are simply a way to put idle crypto-assets to work. 

In staking, the main goal is to offer security to the blockchain network; in yield farming, it is to maximize yields; and in liquidity mining, to supply liquidity to the DeFi protocols.

Notably, Saber launched this dual yield reward last November in partnership with Marinade and Quarry Protocol.

What is Saber:

Saber is Solana’s leading cross-chain stablecoin exchange, providing the liquidity foundation for stablecoins or cryptocurrencies whose value is tied to another asset. Market participants deposit crypto into a Saber liquidity pool to earn passive yield from transaction fees, token-based incentives, and automated DeFi strategies.

Learn more about Saber:

Twitter | Website | Discord |

What is Quarry Protocol:

Quarry is an open protocol for launching Solana liquidity mining programs. The Quarry Protocol debuted in August of 2021. The Protocol has seen significant growth among Solana ecosystem developers since then:

On GitHub, the Quarry Protocol repository has 86 stars and 19 forks.

Many of the most downloaded anchor crates (more than 1000 downloads!)

Saber and Marinade, two of the most important Solana protocols, have adopted it. 

The goal of the Quarry Protocol team is to serve as the focal point for all yield farming activities on Solana.

Learn more about Quarry Protocol:

Twitter | Website | Discord | Medium |

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