Announcing Solend, Algorithmic Lending and Borrowing

The project launch is just around the corner, with the team focused on building a supportive community before release.

By
Utulu Hope
on
June 9, 2021
Category:
Breaking News

Solend - An Autonomous Interest Rate Protocol 

Solend — an autonomous interest rate machine for Solana has announced their launch. In a Tweet made on the 8th of June 2021, the algorithmic, decentralized protocol announced the latest advancement in the fast-rising Solana ecosystem. 


Solend On Solana

Solend is a decentralized finance (DeFi) protocol for borrowing and lending built on the Solana blockchain. DeFi has the potential to replace the world's financial system, but there are some concerns that could slow its rise. One of which is the expensive rate of transactions, particularly in the biggest DeFi network in Ethereum. Transactions on the Ethereum mainnet can cost up to $300, which is huge and has absolutely scared away many potential users.  However, with Solend building on Solana, transactions that include borrowing, supply, and withdrawal will be done cheaper and faster. 

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Solana is the best solution for solving these scaling problems users face on the Ethereum blockchain. However, there is no lending ecosystem yet on the Solana network, which is one of DeFi’s most impressive capabilities. 

With the introduction of Solend on Solana, everyone can earn interest or take a loan against their assets on Solana. This is done at a very affordable price and extremely high speeds, which will motivate interested investors to choose the network. Assuming Solend takes full advantage of these investor-friendly qualities, the project has a lot of room for growth in the space.


Solend to Improve Token Efficiency 

Presently, there is no talk of a native Solend token. However, tokens integrated into the protocol are very efficient. They can either be used to earn interest or as collateral for a loan, applied to Liquidity Pool (LP) tokens to unlock large collateral amounts. With Solend, users can also use their tokens to leverage long with recursive borrows or short other tokens. By focusing on pre-established tokens on the platform, Solend removes the hassle of initial volatility of their own token. This also increases their potential user base, as it does not restrict platform use to native token-holders only.


A Product of Solana Season  Hackathon 

Solend was developed as part of the Solana Season Hackathon, which ended on the 7th of June 2021. It is currently deployed to devnet, and improvements are being made for its imminent launch. In this light, users are urged to join its Twitter and Discord community to get updated as soon as Solend launches. 

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Final Thoughts 

The Solend team is excited at the prospects of its imminent launch, including the support gotten from the community. Its goal remains to build the community to a robust point before launch. However, the recent announcement indicates that its launch is just around the corner. With this on the horizon, Solana will have a lending platform that will gain prominence given its unique offerings. Thanks to their focus on a community-first protocol that does not rely on faith in a native token, Solend could see tremendous usage on the blockchain.

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Utulu Hope

UC Hope is a passionate fan of crypto who could weave the latest event into sparks of inspiration and information. He leaves no stone unturned to get to the core of a story. Aside from writing, he spends his hours poring over algorithms and protocols, preparing for a future career as a computer programmer.