The rise of new lending forces: Is Solana’s lending project worth looking forward to?

Rising star-Solana

According to public statistics, the Solana ecosystem has covered DeFi, tools, infrastructure, NFT, games, DApp applications and other fields. There are nearly 190 DeFi projects alone (incomplete statistics): 

The rise of new lending forces: Is Solana's lending project worth looking forward to?

The rise of new lending forces: Is Solana's lending project worth looking forward to?

(Image source: Solana Daily, https://twitter.com/solana_daily/status/1475821382432923650)

The embryonic form of the Solana ecosystem has been formed, with a hundred flowers blooming, and the segmentation field is becoming more and more comprehensive. According to the above figure, it can be seen that the DeFi field is the most developed track in the Solana ecosystem so far, covering DEX, lending, futures options, and liquidity. Solutions, aggregators, synthetic assets, oracles, and many other categories and infrastructure service products.

The importance of lending in a public chain ecology

Funds and flow entrance: For the new public chain, lending is the underlying liquidity source of its financial ecology, because for cryptocurrency holders, they can obtain Tokens that they did not own for liquidity mining. All of this is based on a premise-they do not need to sell any crypto assets. At the same time, lending on a new public chain (with some supplement) is a major entry point for attracting traffic. Many new online lending projects will attract new users through airdrops and other methods to provide liquidity, etc., thereby attracting a large number of DeFi “Smart Money” Come to this new public chain; in addition, the lock-up amount (TVL) is also one of the key indicators for the competition of major public chains.

The rapid rise of Polygon is related to the fact that it attracts major lending leaders to its ecology. For example, the TVL brought by AAVE to Polygon accounts for about 45% of its total TVL. The access of AAVE has brought a lot of traffic to Polygon, and the entire ecology All TVLs are up. Benqi is the largest project in the avalanche protocol ecology. According to DeFi Llama’s data, its TVL has accounted for 13.7% of the total TVL of the avalanche protocol. It can be seen from it that borrowing can quickly attract attention and funds to a new public chain. Especially critical.

The uniqueness of the Solana public chain: Similarly, how important is the lending sector in the Solana ecosystem? Unlike EVM-compatible chains such as Polygon and Avalanche, Solana itself is not compatible with the Ethereum Virtual Machine (EVM), and it is currently impossible to easily migrate the existing leading lending projects on Ethereum to the Solana ecosystem. Therefore, Solana’s loan projects are almost all native projects. In addition, Solana is known as the fastest blockchain in the world, and its high throughput is a major feature. The current chain can reach 50,000 TPS per second. Efficient computing speed directly reduces the cost of on-chain transactions, usually 0.000005SOL, which is almost negligible. This feature of Solana is very suitable for high-frequency blockchain applications, such as DeFi and chain games.

It is worth mentioning that thanks to the crazy expansion of the Solana ecosystem, its TVL increased by nearly 300% from April to December this year. In the end, Solana TVL also hit a record high. As of today (December 27, 2021), its TVL has reached US$12 billion. The top protocol on Solana is Raydium, a decentralized trading platform, with TVL accounting for 13.43%.

The rise of new lending forces: Is Solana's lending project worth looking forward to?

Loan project on Solana

1. Port Finance   

The rise of new lending forces: Is Solana's lending project worth looking forward to?

Port Finance is a non-custodial liquidity agreement on Solana that provides innovative lending and interest rate derivatives. They plan to provide a basic lending agreement that allows users to hold leveraged positions; then provide the function of fixed-rate loans to let users know the amount of interest; then, create an interest rate swap market between fixed and floating interest rates for users to hedge interest rates risk. As of December 29, its TVL was approximately US$138 million.

Obtained high-quality capital endorsement: The seed round was led by Jump Capital, Rarestone Capital, Raydium, Solarium, etc. participated in the investment and raised 1.2 million US dollars.

Evaluation: The first lending agreement on Solana, which provides innovative lending and interest rate derivatives. It has won the Solana Season Hackathon Award and endorsed by top investment institutions.

2. Oxygen   

The rise of new lending forces: Is Solana's lending project worth looking forward to?

The Oxygen Protocol (Oxygen Protocol) is an on-chain prime broker service agreement built on the scalable Solana blockchain and added to the rapidly growing Serum ecosystem.

Endorsement by top investment institutions: Alameda Research led the strategic round, and other well-known capital and holding companies such as Multicoin Capital, Genesis Capital, and CMS Holdings participated in the financing.

Evaluation: The team has a strong comprehensive background and rich experience in traditional brokerages and cryptocurrencies. Compared with the October valuation peak (approximately 22 billion), the current total market value of the project is about 10 billion U.S. dollars, which has dropped by 50%, and the Token circulation is still 1. % about.

3. Larix   

The rise of new lending forces: Is Solana's lending project worth looking forward to?

The loan agreement on the Solana blockchain uses a dynamic interest rate model to create a more capital-efficient risk management pool, so as to safely make full use of a wide range of collateral types.

Recently completed private equity rounds and seed rounds of financing. Investors include Solana Capital, Huobi Ventures, Gate, MXC Global, BitMart, Fenbushi, Polygon, FBG, etc. Judging from the lineup of investors, it is mainly trading platforms and public chain ecological funds. As of December 29, its TVL was approximately US$176 million.

Evaluation: Won the first place in the quadratic vote of the Solana Hackathon in Asia. The use of the dynamic interest rate model is also the first in the Solana ecosystem, and the investment institution is also good.

4. Jet Protocol   

The rise of new lending forces: Is Solana's lending project worth looking forward to?

Jet Protocol is a lending protocol built on the Solana blockchain, focusing on innovative lending products and cross-chain interest rate arbitrage.

Good investment institutions: Alamenda Research, SMS Holdings, the amount of financing is unknown.

Evaluation: The community is very popular: Twitter has about 15,000 followers; Medium has 15,000 followers; for the Solana ecosystem, the product has a certain degree of innovation.

The rise of new lending forces: Is Solana's lending project worth looking forward to?

Why do these loan projects choose to run on Solana?

This is due to the high-performance characteristics of the Solana chain itself, 65,000 transactions per second, 400 milliseconds of block time, low-cost transaction fees, strong security guarantees and a developer-friendly environment. Of course, the ability to operate capital is indispensable , The strong capital endorsement has also attracted a large amount of funds to the Solana ecosystem, making its TVL rapidly increase. In addition, a variety of stablecoins help Solana lending platform to make it more attractive. As a stable value store, stablecoins make DeFi lending applications more usable for the public. A mature stablecoin is essential to a strong, sustainable and mature ecosystem. The number of stablecoin projects integrated by Solana has been growing. For example, Tether (USDT) will be launched as the first stablecoin on Solana in 2020. , This is a huge boon for the Solana ecosystem. In addition, Circle’s USDC will be launched on Solana in January 2021, and there are many stablecoin projects such as Terra, Parrot, UPFI, etc.

Summarize 

Solana is still a very new public chain, and there is still a lot of room for growth. It needs more developers and innovative projects to build on it. For its follow-up development, especially the borrowing projects as a source of underlying liquidity, it is very worthwhile expect! But whether Solana can take off, in addition to high performance and safety, the key is to see whether the Solana ecosystem can grow. There is only borrowing, the ecosystem cannot rise, and it must develop and grow together with other types of projects.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-rise-of-new-lending-forces-is-solanas-lending-project-worth-looking-forward-to/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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