Solend app review

Solend

Solend app review

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Open Dapp

Yolanta Chomag

Last updated: Jun 25, 2022

What is Solend

Solend is an algorithmic, decentralized protocol for lending and borrowing on Solana, where users are able to earn interest on deposits and borrow assets with minimal fees.

The protocol was developed during the Solana Season hackathon in the summer of 2021. During the development, the Solend and Nope Finance teams decided to merge the projects, after which the project was launched on the mainnet in August 2021. In October, Solend raised $6.5M in a seed round of funding.

How does Solend work

The Solend protocol allows its users to deposit assets as collateral for a loan, as well as for the purpose of earning interest income. The interest rate earned on the deposited funds is calculated algorithmically.

Solend currently has one cross-collateralized pool from which any asset can be borrowed against the collateral of another. Only tokens with sufficient liquidity are represented in this pool. The interest rate charged for the borrowing assets is calculated algorithmically, too.

In addition to the borrowing interest rate, there's a protocol origination fee which is charged upon origination of a loan. It is split between a program fee and a host fee. The program fee contributes to Solend's insurance fund. The host fee can be collected by any client host to incentivize the decentralized hosting of clients. Solend fees for most vaults are set to 10 bips (0.1%). 

Solend uses two oracles to correctly determine current asset prices. The main one is the Pyth oracle and the backup oracle is Switchboard.

How to use Solend

Solend app can be connected to one of the following wallets: Phantom, Sollet, Slope, or Solflare. Once connected, users have access to a dashboard that displays Solend's main pool. It displays the currently available asset markets and the general information such as the pool's total supply, TVL, and SLND token value. Each pool has information about the total supply and borrow, as well as supply and borrow APY. Furthermore, by clicking on their SLND balance on the top left, users can view and redeem their SLND rewards.

«Your account» panel on the right contains all the information about the wallet balance, deposited and borrowed funds, as well as the borrow limit and liquidation threshold. When borrowing, the user must pay attention to the borrow limit, which depends on the type and amount of the asset pledged as collateral. Another important indicator is the liquidation threshold, which is the percentage at which a loan is considered uncollateralized. If a loan crosses the percentage (50 to 80 percent for all current assets), assets that were previously used as collateral will be liquidated and paid out to lenders and the liquidator. Anyone can liquidate a loan that has crossed the threshold and is incentivized to do so with a 5% liquidation bonus.

Each account can have six positions at most. Any supplied or borrowed asset constitutes a position. The attempt to enter more positions would cause the transaction to fail due to the Solana compute limit. 

Users can repay or withdraw assets promptly and without any delays. 

The SLND token

The Solend native SLND token is a governance token. The total supply of SLND equals 100 million. 

The largest portion of SLND, 60% is allocated to the community: half to the liquidity mining program and the other half to the Solend Treasury, owned and governed by the Solend DAO. Then, 5% of the Treasury comes from an IDO held in November, 2021. 

Breaking it down further, 25% of SLND is allocated to the core team, and 15% of SLND is allocated to investors. Only 10% was distributed in the seed round, but an additional 5% is set aside for a potential future raise in case it’s needed.

Seed investors have a three-year vesting schedule, with the first third vesting on October 1, 2022, and the rest vesting monthly after that. The team also has a three-year vesting schedule, with the first third vesting on June 1, 2022 or later (based on join date). There is no lockup for IDO participants.

As stated above, half of the tokens reserved for the community will be minted through liquidity mining during three years. SLND is being emitted at a rate of 0.1585 per slot (10M / slots per year, where slots are every 500ms). These rewards are split evenly between supplying and borrowing, and are distributed proportionally according to each market’s weight. To start earning liquidity, the user needs to supply or borrow SOL, USDC, ETH, soETH BTC, USDT, or USDT.

How to buy Solend SLND token

Solend SLND token can be purchased on centralized exchanges like FTX and Gate.io. 

Solend SLND token can be purchased on decentralized exchanges like Raydium and Orca.

Disclaimer

It is up to you where to buy the SLND token. It is worth taking into account that decentralized exchanges allow you to do this more anonymously, you do not need to pass KYC procedures to use them, on the other hand the cost of transactions may be higher than on centralized exchanges, while there is a risk of your funds being held by the exchange.

Disclaimer

If you need to understand if Solend is a good investment and try to make an SLND price prediction, you need to do your own research on the project.

All the data for research is available on the project page on our website: check out the technical features of the project in this review, try to use the app, see if the information about the team is available and the team is open for communication, and using the project dashboard and the SLND price chart, assess the project usage rates as well as the token price movement and the number of its holders.

Is Solend safe

The protocol team members do not disclose their real names, only nicknames: 0xrooter (founder), 0xnope, 0xodia, Da Sichuan, and legocactus. The Solend smart contracts are open source.

Partners 

Solend has raised $6.5M with the help of a number of well-known investors in the industry, such as Polychain, Dragonfly, Coinbase Ventures, Solana Ventures, Alameda Research, the Aave founder Stani Kulechov, and others. 

What's next

According to the roadmap for the fourth quarter of 2022, Solend is planning to introduce isolated pools. Isolated pools are separate lending markets which support a set of assets that can be used as collateral for loans against each other, in contrast to having a single cross-collateral pool in which any asset can be borrowed against one another. The feature is planned to make the protocol more secure. 

There are also plans to introduce support for LP tokens and a gradual transition to DAO management.

Links

https://docs.solend.fi/

 

 

 

Basic info

  • Token SLND
  • Audited yes
  • DAO yes
  • Yield farming yes
  • Team private
  • Hacks no

Audits

Auditors:

Kudelski

Kudelski

Token profile

Price Market cap.

Solend

Users

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