Since it was first introduced, Solend has been able to attract the market's attention. Solend is an algorithmic, decentralized lending and borrowing protocol based on Solana. It established gateways for users of Solana to enhance the number of ways in which they might profit from the market.
Solend generated excellent traction thanks to the participation of significant investors such as Dragonfly Capital, Polychain Capital, and Balaji Srinivasan, amongst many others. As a result, the company accumulated $100 million in deposits in a little over a month following its launch. This was accomplished even before liquidity mining opportunities became available.
In this blog post, we will learn what Solend (SLND) is, how it works, and the best place to buy it from.
What Is Solend (SLND)?
Solend is a decentralized platform for asset borrowing and lending that operates on the Solana blockchain and enables users to borrow or lend assets to one another. On the protocol, interest rates and collaterals are determined by an algorithm. This allows users to earn interest and leverage cryptocurrency assets long or short on the platform. The Exposure to the decentralized finance (DeFi) market that SLND, the native token of Solend, provides is made possible by Solana.
When Solend was finally released to the public in August of 2021, its total value locked (TVL) was under $20 million. After another roughly three months had passed, the TVL had surged to close to a billion dollars. Solend intends to become the most popular protocol for lending and borrowing Digital Financial Assets on the Solana network.
Before then, a prototype of Solend was developed during the June 2021 Solana Season Hackathon, which the team ultimately won. The accomplishment acted as a springboard for the project to enter the realm of decentralized finance as a lending protocol.
How Does Solend (SLND) Work?
The concept behind Solend is very straightforward: users can earn interest on assets they deposit into their Solend accounts. They can also use these deposits as collateral to get loans. The decentralization of financing is the primary objective of the platform.
Borrowers are not required to obtain a formal long-term loan or to justify their requirement for one. Instead, the platform allows individuals to obtain short-term loans with less complicated deposits without requiring them to undergo a drawn-out application procedure. Lending limitations and interest payments can both be automatically collected via smart contracts.
How to Utilize the Solend Platform?
Users need a Solana wallet to utilize the Solend platform. This Solana-based lending protocol relies heavily on the SOL cryptocurrency as its primary means of transaction settlement. Users can switch to other denominations if they desire, although the platform's primary currency is SOL.
The "pools" of crypto assets that Solend makes available to its users are denominated in various currencies. For instance, users can lend and borrow cryptocurrencies such as USDC and USDT through the Stable Pool, whereas, through the Main Pool, users can deal with all 20 of the crypto assets that the platform now offers.
After customers have added SOL to their accounts and successfully connected their Solana wallets to the lending network, they can begin borrowing or lending a variety of cryptocurrencies. Users can determine how much interest they can earn by utilizing the Supply option. The Borrow option informs users how much they can borrow via their cryptocurrency holdings.
Each user who takes out a loan is subject to a liquidation threshold. If the value of cryptocurrencies were to shift in a way that caused the loan to exceed the liquidation level, then users' assets would be subject to liquidation. After that, the money is used to provide security for the loan by giving it to the lenders.
SLND is produced at a rate of 0.1585 per slot, corresponding to 10 million per slot yearly (given that slots occur every 500 milliseconds, or 10,000,000 divided by 63,072,000). The rewards from SLND are doled out in a manner that is proportional to the weight of each market.
Take, for instance, the fact that the total of all weights is 28. When the borrows on an asset are rewarded with 6x SLND, the borrowers are given a reward equal to 6/28 of the monthly SLND emissions. In addition, certain assets are motivated by the rewards that partners offer.
Understanding the risks associated with Solend and other DeFi protocols is crucial before depositing cryptocurrency. The primary risks of using Solend are discussed below.
- Smart contract risks: someone may use a loophole in the Solend smart contracts to make off with money or lock it up for good. Although this danger is inherently present in all smart contracts and cannot be eradicated, it can be lessened in several ways. Kudelski, an independent security firm, examined Solend's source code. To encourage responsible disclosure rather than hacking, Solend has a bug bounty program that will pay up to $1,000,000 for a critical vulnerability.
- Utilization risks: When an asset is entirely utilized, no tokens remain in the pool, and all attempts to withdraw or borrow will be declined. There will be a delay before new customers can make deposits or repay loans until the utilization rate decreases. This is more likely to impact a user whose deposit constitutes a sizable portion of the pool or whose asset is in exceptionally high demand for borrowing.
- Oracle Risk: Pyth and Switchboard provide the price feed that powers liquidations on Solend. These oracles may need accurate price information, leading to unjustified sales.
How to Buy SLND Tokens?
CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including SLND, users can now trade easily and seamlessly. Here's a guide on how to buy SLND on CoinEx.
- To access CoinEx's services, register for an account by clicking "Register". Existing users can log in.
- After logging in, deposit funds into your CoinEx account using one of the supported cryptocurrencies or deposit methods supported by the exchange.
- After depositing fiat or cryptocurrency, go to the SLND trading page, choose a trading pair, and specify the amount of SLND to purchase.
- To buy SLND tokens, choose the appropriate trading pair, specify the desired quantity of SLND, and trade the paired token for SLND.
What is the market cap of Solend?
The total Market Cap of Solend is around $37.90M.
How many SLND coins are there?
The total Supply of Solen coins is 100.00M coins.
What is the current price of Solend?
Currently, it is trading at $0.3795.