Defi Applications on Solana Network

The DEFI revolution has taken shape on the Ethereum network. In this concept, the ERC20 tokens created on Ethereum and pegged coins of other blockchains were decoupled on the Ethereum network. Transactions such as decentralized trading, lending began to be carried out through various financial protocols.

Currently, Ethereum stands out as the most widely used network in the field of DEFI. Ethereum network, which has the widest range of Defi products, has also the advantage of being tested over time. But the high transaction fees are a big problem for users. This problem is partly due to the capacity constraints of the Ethereum network, partly due to the fact that the price of Ethereum has increased 9 times last year.

The Binance Smart Network(BSC) and Polygon, which have emerged as alternatives to Ethereum, have quickly gained popularity. Because the transaction fee, which is roughly $ 10 on Ethereum, is $ 1 on BSC and 1 cent on Polygon. (Fees are changing due to the transaction type) Since these alternatives are being developed on an Ethereum-compatible infrastructure, the adaptation of applications is happening quickly. The same applies to users, it is easy to switch from one to another by selecting the appropriate network in the MetaMask wallet.

I am actually using the networks I mentioned above. In BSC, transactions occur in about 2-3 seconds, and in Polygon in 4-5 seconds. Of course, these periods can vary depending on the density state of the network.

Recently, the Solana wind has been blowing in the crypto world. So much so that the price of Solana, which was $ 24 on July 20, is $ 162 today. This rise made Solana the seventh coin by market capitalization.

The Solana project appeared in 2017. The Solana network became active in March of this year. Solana uses a combination of Proof of Stake and Proof of History consensus mechanisms. Solana is a network that stands out for its processing speed. Unlike Polygon and BSC, it is written in a separate programming language, so the adaptation of existing Ethereum Defi applications is relatively difficult.

I had a chance to experience Solana in a similar way to other networks. To use the Solana network, you first need to install a wallet called Phantom as a browser add-on. (There are other wallet alternatives) Then you need to buy SOL coin from the central exchange you are using and send it to the address of the Phantom wallet. I bought my SOL coins on Binance. It didn't bring me confusing options when withdrawing; I was able to draw by typing the address of the Phantom wallet.

First of all, I made a few trial trades on an application called Raydium on the Solana network. Since the transaction fee is close to zero, it is possible to make a lot of transactions on the Solana network. However, the processes took place very slowly, and I didn't get a very good user experience. I'm not sure if this was caused by Raydium or the current state of the Solana network.

Today I used an application called Saber and observed that transactions occur faster compared to other networks. It is possible to invest in liquidity pools similar to Pancakeswap via Saber. I would recommend that those who are interested in investing in Defi take a look at Solana applications. Pool returns look quite attractive. For the list of applications: https://defillama.com/chain/Solana

For example, in the Saber application, the yield of the USDT-USDC pair is reported as 62%. The second most popular application of the Solana ecosystem is Sunny. It enables to add yield farming revenue to Saber pools. By the way, those who will invest coins of the Solana ecosystem should take into account that prices have risen very quickly recently.

Thank you for reading.