Step pool offers xSTEP and STEP, allowing for multiple strategies such as borrowing STEP to deposit xSTEP, or depositing large amounts of STEP or xSTEP to unlock capital (SOL/USDC) against them.
What's the Risk?
There are some smart contract risks present due to the reliance on an external protocol. If Step is exploited and drained, STEP and xSTEP here would likely not get liquidated fast enough and cause socialized losses for lenders.
There is also the risk of oracle exploits, as xSTEP and STEP rely on Switchboard oracles to get up-to-date prices.