Solana Decentralized Finance Ecosystem Analysis: Key Products and Development Trends

Messari's latest quarterly report shows that Solana's Decentralized Finance trading volume continues to grow. The average daily spot DEX trading volume increased by 319% month-on-month to $1.5 billion, mainly driven by Memecoin trading. Solana has become a hotspot for retail and Memecoin trading, with its low fees and fast confirmations providing users with a smooth experience. Against the backdrop of rising SOL prices, Solana's total locked value (TVL) increased to $4.311 billion, mainly from DEX, LST, lending, and perpetual contract platforms.

Decentralized Exchange ( DEX )

DEX on Solana primarily operates around its ecosystem.

| Project | TVL ( billion USD ) | Circulating Market Cap ( billion USD ) | FDV ( billion USD ) | 24h Trading Volume ( billion USD ) | |------|-------------|-------------------|--------------|-------------------| |Some Trading Platform A| 9.65 | 4.58 | 9.65 | 6.50 | |Some Trading Platform B| 5.96 | 11.72 | 86.82 | 8.18 | |Some Trading Platform C| 2.36 | 1.07 | 2.68 | 5.96 |

Some Trading Platform A

The platform allows anyone to create liquidity pools and was once the preferred choice for meme coin issuance. Currently, the TVL is approximately $965 million, with a 24-hour trading volume of $1.162 billion. As dedicated meme platforms emerge, its influence may gradually decline.

Some Trading Platform B

As a liquidity aggregator, it seeks the best price paths on Solana to minimize slippage and fees. The platform also offers perpetual contract trading with up to 100x leverage. Liquidity providers can earn fees from leveraged trading. Platform token holders can receive 75% of the perpetual trading fees.

Trading Platform C

With the slogan "DEX oriented towards people rather than programs," it ranks among the top Solana DEXs for a long time. It has concentrated liquidity active market-making features similar to UniswapV3, improving capital utilization efficiency. As a leading DEX, its FDV is only $268 million, reflecting the bubble situation of other chains and DEXs.

Liquidity Staking ( LST )

Solana users have a weak demand for LST, mainly due to no minimum staking requirements and a low SOL price.

| Project | LST | APY( including MEV) | TVL( billion USD) | Circulating Market Cap( USD) | FDV( USD) | |------|-----|------------|-------------|-----------------|-----------| |Project A| JitoSOL | 8.26% | 17.05 | 295 million | 2.374 billion | |Project B| mSOL | 7.44% | 14.13 | 27.41 million | 101 million | |Project C| bSOL | 7.06% | 2.75 | Unlock amount unknown | 6.83 million |

Project A

The airdrop plan was launched in September 2023 and quickly became a leading project. The TVL is $1.705 billion, and the staking APY is 8.26%. Airdrop eligibility is determined by the ranking of the points system, with the lowest tier eligible to receive tokens worth $10,524.

Project B

Native staking is more popular, with a higher APY, becoming a leading project in the ecosystem. It has a locked value of $1.413 billion, but its market cap is far lower than that of Project A, indicating growth potential.

Project C

TVL is approximately 275 million USD, with an estimated staking APY of 7.06%. The FDV is only 6.87 million USD, which is a huge gap compared to project A, requiring a high APY to compete with top projects.

Lending

a lending platform

Algorithmic decentralized lending protocol on Solana. Compared to traditional products, it is 100 times faster and 100 times cheaper. There was once an oracle attack that resulted in a bad debt of $1.26 million, which was subsequently fully compensated. Currently, it uses a certain oracle to provide price data. The demand for lending in the Solana ecosystem is not high, and there are relatively few products.

Derivatives

Derivatives are used for risk management and market trend prediction. In addition to the mentioned trading platform B, there are also several derivative protocols.

| Project | TVL( billion USD) | FDV( USD) | |------|-------------|-----------| |Some Project D| 360 million | 530 million | |Some Project E| 14.69 million | 550 million | |Project F| 9.7 million | Not issued |

Project D

An integrated DEX with a TVL of $360 million, offering pre-market trading, 20x leverage, collateralized lending, and other features. Received a $3.8 million seed round investment from a certain investment firm. Its v1 version attracted over 15,000 users, with a trading volume exceeding $10 billion.

Project E

A decentralized spot and contract exchange focused on the Solana network, characterized by low fees and minimal price impact. It utilizes a multi-asset pool system and NFT structure to enhance user participation. Dynamic pricing is implemented using a certain oracle and backup system.

Project F

Decentralized Finance derivatives platform, providing DEX and options minting auction base layer. Simplifying the derivatives trading experience, using a certain trading view to provide candlestick charts. Tokens have airdrop expectations.

a certain oracle

Connect blockchain with the real world, providing external data for smart contracts. Applicable in fields such as financial derivatives, risk management, and insurance. Compared to traditional oracles, data updates are faster and more stable, and can be applied to multiple blockchains.

Conclusion

The Solana DeFi ecosystem continues to develop, with new products emerging continuously. Mature projects have advantages in user base and market trust, while emerging products quickly attract users through optimized user experiences and market promotion. The future Solana DeFi ecosystem is expected to be even more prosperous and diverse.