The Solend project’s DAO event proposed a proposal to take ownership of a whale’s wallet which has attracted a lot of interest from the crypto investment community. So what is this project?
What is Project Solend (SLND)?
Project Solend is a DeFi project about Lending and Borrowing on the Solana blockchain ecosystem. This project stands out for its impressive scalability.
As Lending and Borrowing thrived and proved that this segment is the key to unlocking the golden land in the field of DeFi. However, since it was early recognized that current lending and borrowing products have relatively slow and expensive transactions, Solend has relied on Solana blockchain technology to speed up transactions and reduce transaction fees to the next level 100 times.
With the intention of mastering Lending and Borrowing on Solana, this project will develop with a focus on user experience and security to attract users in this billion-dollar ecosystem.
When experiencing Solend, users can do the following things:
- Lend and earn interest
- Borrowing crypto assets
- Leverage to Long for crypto assets
- Can be short on crypto assets
Special features of Solend project
Very low transaction fees
Taking advantage of the advantages brought by Solana blockchain, Solend optimizes transaction fees on their own platform. Also compared with other blockchains like Ethereum (which can cost all the fees up to $40), the transaction on Solend platform is less than 1 cent.
Increased scalability and connectivity
As well as taking advantage of Solana’s scalability, the Solend project is currently expanding their DeFi ecosystem with a wide range of assets that can be lent or mortgaged on the platform (currently 46 products are listed trade on Solend with a variety of tokens from stable coin, native coin, or even meme coin).
Increase user experience
Overall, SLND project offers a fairly intuitive and user-friendly experience when the dashboard interface carries all the necessary information.
At the same time, the governance of Solend will be managed by a DAO – a decentralized autonomous organization – to empower the community to participate in the project. This empowers the community and keeps the Solend user community motivated to grow.
Features in the Solend project
Like another Lending and Borrowing project on any ecosystem, the Solend project has basic features such as:
Lending and borrowing
Lenders receive APY interest from borrowers. Borrowed APY is divided by the entire Pool, so Lending APY = Borrowing APY * Utilization.
Borrowers pay APY interest to Pool Lenders. This APY will be calculated based on Solend’s formula and displayed on the user interface, and the loan interest will be automatically accrued to the borrower’s loan and the amount will increase daily.
Liquidation – Liquidation mechanism
This is a necessary mechanism for Lending & Borrowing projects so that the project can work smoothly. With Solend, “Borrow Balance” and “Supply Balance” or it can be said that the liquidation point will be calculated by 2 Oracles with Pyth as the main and Switchboard as secondary. Solend will use these two oracles to calculate your financial “health”.
When the Health Bar (blue) reaches the liquidation point (orange), your account will be liquidated. This liquidation point has a different rate for each different token.
When your property is about to be liquidated, Third Party Liquidators will repay 20% of your loan by selling the equivalent amount in Collateral. At the same time, this liquidator will collect 5% fees in 20% of liquidated assets as a reward to protect the protocol.
cToken
The cToken mechanism is considered a Yield-bearing deposit receipt, or can be understood as a receipt of a deposit with interest. This means you can convert your tokens into cToken and cToken can profit from the Solend protocol.
If you are using cToken in the Lending/Borrowing mechanism on Solend, your cToken will be monitored/held by the smart contract of the Solend project, and used as a “collateral” for borrowing.
So this tool is mainly for developers who integrate Solend’s cToken into their project and then direct users to Solend to mint their project’s cToken.
Information about the SLND token of the Solend project
Token SLND Key Metrics
- Token Name: Solend
- Ticker: SLND.
- Blockchain: Solana
- Standard Token: SPL
- Contract: SLNDpmoWTVADgEdndyvWzroNL7zSi1dF9PC3xHGtPwp
- Token Type: Governance
- Total Supply: 100,000,000 VND
- Circulating Supply: 19,465,871
Token SLND Allocation
Community: 60%
- Liquidity Mining: 30%
- Treasury: 30%
Team: 25%
Investors: 15%
- Seeds: 10%
- Future Strategic Rounds: 5%
Token SLND Release Schedule
The seed round capital flow will have 3 years to vesting, starting on January 10, 2022 and vesting monthly thereafter. The distribution for the development team is also within 3 years, starting on June 1, 2022.
Project Solend has no lockup for IDO participants.
Token SLND Use Case
Token Solend is a Governance Token to manage the development of Solend project through Voting method on Solend’s DAO.
Where to buy, sell and store SLND tokens
Token SLND is listed on major and reputable DEX exchanges on Solana’s ecosystem such as Raydium and Orca. Or you can trade on FTX to own SLND tokens.
To use Solend project products and store SLND tokens, you can use non-custodial wallets dedicated to Solana ecosystem such as Coin98 Wallet, Phantom Wallet or Slope. These wallets have both mobile applications and can be integrated on your computer browser to optimize product usage on Solana.
Projection about Solend project, should invest SLND token or not?
Project Solend is one of the prominent projects on Solana’s DeFi ecosystem besides Orca. The project provides users with low fees, stable interest rates, and helps other projects develop with the cToken mechanism. However, this is not investment advice, you need to be cautious when making investment decisions at this time.
Through this article, you have somewhat grasped the basic information about the project to make your own investment decisions.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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