Exploration of the biggest defect options on Solana

The central theses

• The Solana defi ecosystem grows quickly.
• Several high -quality projects compete to become the Blue Chips of the network.
• By using these protocols early, users can start on the ground floor before the ecosystem develops.

After the Comed Price increase from Solana, the defi ecosystem of the Smart Contract platform exploded. With so many new projects that are established on Solana, there are numerous ways to benefit from quick growth.

Solana's rise

While in the course of the summer, Defi is still the undisputed home of Defi in the crypto room. After the "Defi-summer" 2020, a handful of top projects have been established on Ethereum as Defi-Blue chips that cover the functionalities of traditional financial markets in decentralized space.

However, many users have pronounced the costs for the use of defi on Ethereum today. While Layer 2 solutions such as Optimism and Arbitrum promise to reduce the costs for the use of the network, progress was slowly made. Therefore, other Layer 1 chains such as Solana are well positioned to take part of the defi market share away.

Solana sets all criteria for an up-and-coming defi-focused layer 1. Prevent his fast block times and the proof-of-history mechanism, and its node scalability means that the network can theoretically avoid and keep transaction costs low.

Against this background Solana is on the best way to promote his own flourishing defi ecosystem. Currently, several Defi projects are competing to become Solana's defi blue chips. Through the identification of potential projects, users can benefit from being early adopters and all the associated advantages such as airdrops, liquidity mining and more.

Potential Blue Chips

Two of the biggest Defi Blue Chips on Ethereum are connection and . Protocols act like decentralized banks and enable users to store assets to earn interest and use them as security for borrowing. Use farmers with advanced income and often as a base layer for stacking "money-legacies" and borrow assets to achieve additional yield in various defi protocols.

Port Finance and Solend are two projects based on Solana that compete as decentralized banks.

Hafenfinancing , is currently the eleventh greatest dapp on Solana with a blocked total value (TVL) of around $ 122 million . Port works similarly to Compound and Aave and currently supports stable coins, and Pai and some Solana native assets like serum. Port is currently carrying out a liquidity mining program in which users can earn the governance token port of the protocol in addition to the interest on the stored asset.

Solend is another defi bank from Solana . With a lower TVL of $ 64.4 million, the 13th largest Solana dapp is currently. It offers many of the same assets as port, with the addition of and Ethereum, which enables users to borrow against a wider range of assets. Solend has not yet published a governance token, but has confirmed that a token will be introduced in September via a liquidity mining program. The rewards for the program are retrospectively, so that the early use of the protocol can bring an additional bonus.

Another defi stack of Ethereum is the decentralized exchange curve financing . On curve, users can replace bound assets such as stable coins and packaged assets efficiently and with low slipping. On Solana, the demand for the exchange of bound assets by Saber , the protocol with the currently highest TVL in the network.

Sabre offers numerous coupled investment pairs such as USDC-Enddt, stuck and not inserted Sol and BTC-. In addition to the exchange of assets, users can also provide liquidity to earn interest. In contrast to most liquidity pools on Ethereum dapps, the pools of Saber do not require that the user pay the same amounts of both assets. While the return fluctuates with the liquidity and pool utilization provided, users can earn 3 to 10 % APY with SABE. However, the possibility of achieving return does not end here.

As soon as the users have received their liquidity providers (LP) token, you can hand them over to the Yield aggregator span-Preserver-Spaces = "True"> Sonnig additional rewards to earn. Users can earn SBR for the provision of liquidity on Sabre, and the Sunny aggregator also pays Sunny token with a variable APR depending on the liquidity pool. This additional earnings layer is already used strongly because around $ 1.4 billion is deposited on Saber LP-token on Sunny, which gives it the second highest TVL on Solana.

While there is a variety of defi options on Solana, many users simply choose to use their SOL for a variable return of 6 to 8 %. As soon as funds are used, they become illiquid, which means that they are blocked and cannot be traded or deposited into other defi protocols. However, an activity that is known as a liquid stilting enables users to create a synthetic asset that represents a crazy SOL that is not blocked. This allows users to access additional earnings options and at the same time stake their Sol.

Marinade Finance fills this gap in the market by enabling users to set their SOL and receive MSOL in return. MSOL is a tradable SOL that can be used to generate additional returns on other Defi platforms. For example, a user can use Marinade's liquid staking to earn 6 to 8 %, and then deposit his MSOL into the SOL MSOL liquidity pool from Saber to achieve additional earnings.

Another Ethereum Blue-Chip to get a Solana equivalent is Manufacturerdao like Makerdao, Solanas Finance enables your assets to be blocked and in return shaping the Pai stable coin. In addition to the deposit of individual assets such as Sol, SRM or Ray, LP-token from Sabre can also be used as security for the characteristics of PAI. Parrot currently has an upper limit for the amount of PAI that can be shaped, but if the platform grows and the demand stabilizes, these restrictions are likely to be lifted. Recently, Parrot has completed a dual liquidity mining program with Port Finance, which enables users to pay PAI and PSOL and earn in addition to the regular interest rates.

Another popular Defi project from Solana is Orca, an automated market maker (AMM) for the exchange of assets on Solana. While Solana already offers opportunities to exchange assets such as serum and raydium, Orca simplifies the AMM experience and introduces a whole series of upgrades. Before the pool of the protocol is provided, the number of tokens earned per $ 1,000 is displayed so that users can more easily assess their rewards. In addition, Orca calls data from price trackers on Coingecko when the transactions are confirmed and warns the users if the courses or slipping are higher than expected.

With all the lucrative possibilities of achieving returns in the Solana ecosystem, the network seems to attract more capital in the coming months. Early participation can often pay off, as was the case with many defi protocols on Ethereum. While the price of Sol may look overheated at the moment, it looks as if the ecosystem developing on Solana will stay here.