Solana DeFi 2.0? Projects in the ecosystem worth watching
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Solana DeFi 2.0? Projects in the ecosystem worth watching
New Solana DeFi protocols are emerging and aiming to build their communities through innovative reward programs.
Navigating Web3 tides with focused insightsWritten by: Aylo
Compiled by: TechFlow
Solana DeFi is not dead. Over the past 30 days, TVL across all Solana ecosystem DeFi applications has increased, and many newer applications have seen their metrics rise sharply.
Over the past year and a half, Solana DeFi has taken hits for several reasons:
- Network instability (possibly the biggest reason – DeFi cannot afford downtime);
- FTX collapse;
- A low liquidity, high FDV model that prevented communities from forming around earlier DeFi applications.
The Solana Foundation has released numerous updates, which have had a noticeable impact on performance. In fact, Solana now outperforms Rollups. After the FTX collapse, capital fled the chain, which clearly hurt DeFi. But new Solana DeFi protocols are emerging and aiming to build their communities through innovative reward programs.
DeFi Summer of 2020 created many life-changing opportunities, and blue-chip DeFi apps were built during that time (Curve, AAVE, Uniswap, etc.). I can't predict the future, but I believe Solana DeFi will rebound (I think it already has), and it's worth exploring this ecosystem because staying curious about crypto is always worthwhile.
Here are several protocols worth exploring (most are tokenless):
Jito Lab
JitoSOL is Solana’s first MEV-enhanced liquid staking token. Jito offers the highest APY for SOL staking (7.22% APY). Simply deposit SOL through their user interface. Staked SOL is directed only to top validators running Jito-Solana, enabling more efficient MEV extraction via transaction bundling.
The staking pool is non-custodial. You continue earning staking rewards while also being able to participate in Solana DeFi and NFT trading.
Marinade
Marinade is Solana’s native non-custodial liquid staking protocol. mSOL is widely used across Solana DeFi.
Deposit SOL (6.99% APY) to receive mSOL. You can then deposit mSOL into various protocols to earn additional yield through their platforms.
MarginFi
MarginFi is currently the fastest-growing DeFi application on Solana—a lending platform.
MarginFi employs a clever points system to accelerate growth. For every dollar lent, users earn 1 point per day; for every dollar borrowed, they earn 4 points per day.
They don’t have a token yet, nor have they explained how users will eventually use their points.
JupiterExchange
Jupiter exemplifies fast composability on Solana. It routes across multiple Solana AMMs and CLOBs, recently integrating with SPL staking pools to mint LSTs like Jito. You can also set limit orders on Jupiter. The user experience is excellent.
No token yet.
Cypher
Cypher: Recently launched its own points system. No token yet. Users can leverage assets via MarginFi and deposit them into Cypher to execute points strategies. Earn points as follows:
Perpetual Markets:
- Maker volume: 20 points per $1 traded
- Taker volume: 15 points per $1 traded
Spot Markets:
- Limit order volume: 10 points per $1 traded
Lending:
- Borrowing: 5 points per $1 borrowed per day
- Lending: 1 point per $1 lent every 24 hours
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