How to Solana — Chapter 1: Lending & Borrowing

Overview

Solana Lending & Borrowing

Prime Brokerage on Solana

Primitive I: Supplying Liquidity & Generating Yield

Objectives: Trustless Prime Brokerage

Solend’s homepage displays all available markets, as well as critical analytics e.g on-chain liquidity, supply/borrow limits, and APYs
Anchor Protocol’s dashboard offers a comprehensive overview of protocol analytics and all available markets on the dApp homepage. Users simply need to scroll down to view markets + real-time metrics & yields.
Supplying liquidity to on-chain pools can be done with either singular cryptoasset (Solend, top), or multiple cryptoassets (Oxygen, bottom) deposits. Once liquidity is pooled, users can now explore and access trustless lending & borrowing services.

Primitive II: Permissionless Loans, Debt, & Credit

Objectives: Financial Leverage & Flexibility | Rapid Capitalization

Solana Supported Services I: Cross-Collateralization

Objectives: Portfolio Flexibility | Account Stability

Cross-Collateralization on Oxygen is possible with both large established pools, and small custom pools. Regardless of existing liquidity, Serum’s on-chain order book matching ensures that all supported assets are priced accurately, with near instantaneous updates to price-feeds & analytics.
Solend also supports cross-collateralization. Even relatively small accounts with <$100 deposits will have full functionality & flexibility in accessing the protocol’s suite of products & services.

Solana Supported Services II: Liquidity Networks

Objectives: Staking Liquidity & Utility | Network Security Increased Staking

Staking pools often compete rather than collaborate for liquidity. In this example, three independent validators are hosting three non-cooperative pools, presumably with three different SPT tokens. Source: https://gopartyparrot.medium.com/what-is-psol-and-why-it-helps-staked-sol-tokens-60a0b00ac5d6
Parrot protocol functions as a hub for depositing rogue SPTs. Independent staking pools can combine liquidity by minting Parrot’s pSOL SPT token. The corresponding increase in TVL rewards pSOL minters with increased utility, better APYs, and more lenient overcollateralization requirements compared to the user’s original SPT deposit. Source: https://gopartyparrot.medium.com/what-is-psol-and-why-it-helps-staked-sol-tokens-60a0b00ac5d6

Reference Protocols — Borrowing & Lending

Mainnet Products:

Pre-launch & Conceptual Products:

A team of former consulting, Wall Street, private equity, government, and corporate veterans accelerating the blockchain revolution