Solana is an amazing blockchain platform that has supported a variety of DeFi projects since it was launched. Today, the Solana-based DeFi projects hold a massive $8.6 billion in total value locked (TVL). It shows just how Solana is becoming a go-to blockchain platform among DeFi projects, next only to Ethereum.
Thanks to its capability of processing up to 65,000 transactions per second and cheaper transaction cost, which is as low as $0.00025 per transaction, the interest in Solana-based DeFi projects is at an all-time high. Despite this, it is very difficult to single out the most promising Solana-based DeFi projects without putting in your valuable time to research the market extensively. Thus, we have prepared a list of new Solana-based DeFi projects that you must watch in 2022. Let’s dive into it now.
Nezha: A Game-Changing Prediction Market Protocol
What comes to your mind when you hear the word ‘prediction market’? Is it the high reward opportunities that prediction markets offer? Or, is it the losses that users might face in case their numbers do not match with the drawn number? For most people, the thought of losing their hard-earned money seems to be playing a dampener effect, turning away the masses from participating in the promising prediction markets. Nezha, a DeFi protocol built on Solana, is solving this issue once and for all.
Nezha’s reimagined prediction market, which is rightly called prediction market 2.0, has put in place a mechanism ensuring a user does not lose their principal amount. It’s because, in Nezha, users do not wager their principal amount. Instead, Nezha users wager the interest their funds earn while in Nezha’s liquidity pool.
As for how Nezha earns this interest, it does so by directing its entire user funds to high-yield generating external DeFi protocols, such as Solend or Tulip. In return, Nezha receives a high yield daily from these external protocols, which is deposited to Nezha’s liquidity pools every week. But, before directing the user funds to external protocols, the entire user funds are aggregated in one place by the liquidity engine of Nezha.
As Nezha depends on external DeFi protocols to earn a high yield, there is a risk of default. But, Nezha’s experts manage it by hedging against the risks. So, you can rest assured that your funds are safe with Nezha, despite them directing your funds to external DeFi protocols.
In the initial draws, a user that enters a game will receive six numbers per entry, where the number of entries will depend on the amount you stake on Nezha. This mechanism will change in the coming days once Nezha starts seeing spikes in its userbase. With such an amazing concept and innovative technology, Nezha will change the prediction market for good.
Hubble Protocol: Supercharging Liquidity on Solana
Hubble Protocol is an upcoming Solana-based DeFi project aimed at ‘supercharging liquidity on Solana’. Recently, Hubble raised $10 million in funding before its mainnet launch, which is set for scheduled to take place later this month.
In its initial phase, Hubble will issue USDH stablecoin at a 0% interest rate to all users who deposit various crypto assets like Bitcoin, Ethereum, and more. The Loan-to-Value (LTV) ratio to obtain USDH from the Hubble protocol is as high as 90.0%. Another interesting aspect of Hubble Protocol \is that users minting USDH will also earn a yield on their deposits. Besides these, a user who deposits USDH in the stability pool will receive Hubble’s governance token known as HBB.
If you are wondering about the bad loans, there is a stability pool that consists of USDH deposits, which guarantees these borrowings. In case there are any bad loans, these will be paid off through this stability pool, and in return, the stability pool providers will earn 10% of the difference amount of the liquidated assets.
Zebec Protocol: Powering Real-Time Transactions
Solana-powered DeFi protocol, Zebec, provides real-time transaction settlement. It aims to make sending and receiving payments easy and hassle-free. So far, Zebec has raised funding twice successfully. The first funding that Zebec raised was in November 2021, when the DeFi protocol raised $6 million in pre-seed funding round. That’s when Zebec had rolled out Zebec Payroll, a complaint payroll app.
Zebec Payroll allows employees to automatically convert a part of their salary into a cryptocurrency of their choice. Besides this, it allows them to contribute to crypto-based pension programs, invest regularly in DeFi products, and make commission-free fiat bank withdrawals. Another crucial feature of Zebec is its yield farming option, which enables users to participate in its partner yield farming and staking protocols.
Recently, the protocol raised $15 million in a Series A funding round, with the likes of Coinbase Ventures, Lightspeed, Alameda Research, Solana Ventures and Distributed Global taking part in it.
MarginFi Protocol: Bringing CeFi Margin Trading Capabilities to DeFi
Margin trading, though popular in the centralized finance space, is yet to see similar traction in the decentralized finance space. It is all because of the complexities and intricacies involved in margin trading when it comes to DeFi.
Another spoilsport is the lack of liquidity partly because of the ‘N’ number of protocols, as the current fragmented DeFi market is leading to capital inefficiency. This, in turn, is preventing traders from combining their positions and bringing them to one place.
That’s where MarginFi comes into the picture, as its cross-margining engine enables traders to manage multiple derivative positions through one single programming interface. Recently, MarginFi raised $3 million from the likes of Sino Global Capital and Solana Ventures.
Ratio Finance: De-Risking DeFi
Despite the many risks associated with yield farming, only the rosy picture of it has been presented to the masses. No doubt that yield farming has been tremendously beneficial in the growth of the DeFi space, but does it mean that it’s fine to brush aside its risks? Not at all!
There is a risk when one provides liquidity on DeFi protocols or stake tokens in these DApps. Besides this, DeFi applications are known for mechanisms that result in capital inefficiencies. It includes over-collateralization, regardless of whether it is required or not, and the lesser we speak about the settlement times the better, as it is quite slow. Then comes the lack of composability, which is one of the major minus points in most of the DeFi applications in existence today.
Shunning the centralized space in its entirety isn’t a good idea, as consumer protection, risk management and modern portfolio theory of the traditional finance industry can make the DeFi applications better in the long run. This is where Ratio Finance is aiming to make a difference by creating an efficient DeFi protocol.
The first thing that Ratio does is that it shows any investors the risk involved before they take on the liquidity provider position. This feature will help Ratio attract institutional investors. At the same time, users can turn to Ratio to obtain a crypto-backed loan while earning yield on their deposited collateral. Now, this yield can be used by them to clear off a part of their dues on Ratio.
As for the Loan-to-Value ratio (LTV) of your collateral, it will be decided on a real-time basis. So, basically, Ratio Finance is combining the good aspects of the DeFi and TradeFi concepts to de-risk the DeFi space. Currently, Ratio Finance is raising funds on Republic, and so far, it has raised over $2.8 million.
Solana is an amazing blockchain platform that has supported a variety of DeFi projects since it was launched. Today, the Solana-based DeFi projects hold a massive $8.6 billion in total value locked (TVL). It shows just how Solana is becoming a go-to blockchain platform among DeFi projects, next only to Ethereum.
Thanks to its capability of processing up to 65,000 transactions per second and cheaper transaction cost, which is as low as $0.00025 per transaction, the interest in Solana-based DeFi projects is at an all-time high. Despite this, it is very difficult to single out the most promising Solana-based DeFi projects without putting in your valuable time to research the market extensively. Thus, we have prepared a list of new Solana-based DeFi projects that you must watch in 2022. Let’s dive into it now.
Nezha: A Game-Changing Prediction Market Protocol
What comes to your mind when you hear the word ‘prediction market’? Is it the high reward opportunities that prediction markets offer? Or, is it the losses that users might face in case their numbers do not match with the drawn number? For most people, the thought of losing their hard-earned money seems to be playing a dampener effect, turning away the masses from participating in the promising prediction markets. Nezha, a DeFi protocol built on Solana, is solving this issue once and for all.
Nezha’s reimagined prediction market, which is rightly called prediction market 2.0, has put in place a mechanism ensuring a user does not lose their principal amount. It’s because, in Nezha, users do not wager their principal amount. Instead, Nezha users wager the interest their funds earn while in Nezha’s liquidity pool.
As for how Nezha earns this interest, it does so by directing its entire user funds to high-yield generating external DeFi protocols, such as Solend or Tulip. In return, Nezha receives a high yield daily from these external protocols, which is deposited to Nezha’s liquidity pools every week. But, before directing the user funds to external protocols, the entire user funds are aggregated in one place by the liquidity engine of Nezha.
As Nezha depends on external DeFi protocols to earn a high yield, there is a risk of default. But, Nezha’s experts manage it by hedging against the risks. So, you can rest assured that your funds are safe with Nezha, despite them directing your funds to external DeFi protocols.
In the initial draws, a user that enters a game will receive six numbers per entry, where the number of entries will depend on the amount you stake on Nezha. This mechanism will change in the coming days once Nezha starts seeing spikes in its userbase. With such an amazing concept and innovative technology, Nezha will change the prediction market for good.
Hubble Protocol: Supercharging Liquidity on Solana
Hubble Protocol is an upcoming Solana-based DeFi project aimed at ‘supercharging liquidity on Solana’. Recently, Hubble raised $10 million in funding before its mainnet launch, which is set for scheduled to take place later this month.
In its initial phase, Hubble will issue USDH stablecoin at a 0% interest rate to all users who deposit various crypto assets like Bitcoin, Ethereum, and more. The Loan-to-Value (LTV) ratio to obtain USDH from the Hubble protocol is as high as 90.0%. Another interesting aspect of Hubble Protocol \is that users minting USDH will also earn a yield on their deposits. Besides these, a user who deposits USDH in the stability pool will receive Hubble’s governance token known as HBB.
If you are wondering about the bad loans, there is a stability pool that consists of USDH deposits, which guarantees these borrowings. In case there are any bad loans, these will be paid off through this stability pool, and in return, the stability pool providers will earn 10% of the difference amount of the liquidated assets.
Zebec Protocol: Powering Real-Time Transactions
Solana-powered DeFi protocol, Zebec, provides real-time transaction settlement. It aims to make sending and receiving payments easy and hassle-free. So far, Zebec has raised funding twice successfully. The first funding that Zebec raised was in November 2021, when the DeFi protocol raised $6 million in pre-seed funding round. That’s when Zebec had rolled out Zebec Payroll, a complaint payroll app.
Zebec Payroll allows employees to automatically convert a part of their salary into a cryptocurrency of their choice. Besides this, it allows them to contribute to crypto-based pension programs, invest regularly in DeFi products, and make commission-free fiat bank withdrawals. Another crucial feature of Zebec is its yield farming option, which enables users to participate in its partner yield farming and staking protocols.
Recently, the protocol raised $15 million in a Series A funding round, with the likes of Coinbase Ventures, Lightspeed, Alameda Research, Solana Ventures and Distributed Global taking part in it.
MarginFi Protocol: Bringing CeFi Margin Trading Capabilities to DeFi
Margin trading, though popular in the centralized finance space, is yet to see similar traction in the decentralized finance space. It is all because of the complexities and intricacies involved in margin trading when it comes to DeFi.
Another spoilsport is the lack of liquidity partly because of the ‘N’ number of protocols, as the current fragmented DeFi market is leading to capital inefficiency. This, in turn, is preventing traders from combining their positions and bringing them to one place.
That’s where MarginFi comes into the picture, as its cross-margining engine enables traders to manage multiple derivative positions through one single programming interface. Recently, MarginFi raised $3 million from the likes of Sino Global Capital and Solana Ventures.
Ratio Finance: De-Risking DeFi
Despite the many risks associated with yield farming, only the rosy picture of it has been presented to the masses. No doubt that yield farming has been tremendously beneficial in the growth of the DeFi space, but does it mean that it’s fine to brush aside its risks? Not at all!
There is a risk when one provides liquidity on DeFi protocols or stake tokens in these DApps. Besides this, DeFi applications are known for mechanisms that result in capital inefficiencies. It includes over-collateralization, regardless of whether it is required or not, and the lesser we speak about the settlement times the better, as it is quite slow. Then comes the lack of composability, which is one of the major minus points in most of the DeFi applications in existence today.
Shunning the centralized space in its entirety isn’t a good idea, as consumer protection, risk management and modern portfolio theory of the traditional finance industry can make the DeFi applications better in the long run. This is where Ratio Finance is aiming to make a difference by creating an efficient DeFi protocol.
The first thing that Ratio does is that it shows any investors the risk involved before they take on the liquidity provider position. This feature will help Ratio attract institutional investors. At the same time, users can turn to Ratio to obtain a crypto-backed loan while earning yield on their deposited collateral. Now, this yield can be used by them to clear off a part of their dues on Ratio.
As for the Loan-to-Value ratio (LTV) of your collateral, it will be decided on a real-time basis. So, basically, Ratio Finance is combining the good aspects of the DeFi and TradeFi concepts to de-risk the DeFi space. Currently, Ratio Finance is raising funds on Republic, and so far, it has raised over $2.8 million.
Today, Tulip Protocol made the announcement that they have integrated Chainlink Price Feeds in order to better secure their yield aggregating platform that is running on the Solana mainnet. The team had previously stated their intention to integrate Chainlink Price Feeds, and at this point, the connection has been completely put into action. Chainlink is the premier decentralized oracle network in the world, safeguarding tens of billions of dollars in smart contracts. It has diversified its offerings across other blockchains, notably Solana, Fantom, Polygon, BNB Chain, and others.
In a recent blog post, the team behind the Tulip Protocol explained that they had integrated Chainlink to provide users with more confidence that leveraged positions will be liquidated equitably using extremely accurate price data and that the protocol will continue to be completely collateralized at all times.
According to Tomasz Wojewoda, Head of Global Sales at Chainlink Labs:
“We’re pleased that Tulip Protocol has integrated Chainlink Price Feeds on Solana, helping secure its yield aggregation protocol with highly robust, decentralized market data. With the high-throughput performance of Solana and the strong security guarantees of the Chainlink Network, Tulip Protocol is able to empower users with a performant and secure platform.”
Tulip Protocol Seeks To Take Advantage Of Solana
Tulip Protocol brings together lenders who receive a return on their deposits and borrowers who are interested in gaining access to leverage. Users who initiate leverage positions are responsible for maintaining a loan-to-value (LTV) ratio that has been previously established. The Tulip Protocol then uses the asset price data that is provided by Chainlink Price Feeds to verify that this ratio is accurate. If the value of the collateral falls below the threshold that was established by the protocol, then their position will be immediately liquidated to assist in guaranteeing that the lenders will be repaid.
Tulip Protocol intends to capitalize on Solana by giving users the ability to more regularly reinvest their income and grow their assets without having to pay exorbitant amounts of gas expenses. Chainlink oracles can now be natively integrated on Solana, making it possible for Solana-based applications to benefit from enhanced levels of security and transparency. Yesterday, OpenOcean made the announcement that they would be integrating Chainlink Price Feeds in order to help secure the limited order functionality on many chains. These chains include Avalanche, Ethereum, Polygon, Fantom, and BNB Chain.
According to Senx, Co-Founder of Tulip Protocol:
“We’re excited to be using Chainlink Price Feeds on Solana to help secure our yield aggregation platform. By leveraging the most secure and reliable on-chain data available, we’re able to provide our lenders and borrowers with greater assurances that liquidations are based on accurate price data, and the protocol will maintain a healthy loan-to-value ratio through all market conditions.”
Allowing Stakers To Benefit From Higher APYs
Natives of the blockchain as well as newcomers to the technology are beginning to understand that decentralization does not necessarily equate to a secure platform. Given that Web3 services are currently disclosing their susceptibilities to attacks from both within and outside the network, further initiatives should be undertaken to improve the safety of user assets. Fortunately, a growing number of blockchain businesses are beginning to add various levels of security to their services in order to solidify the trust of their existing customers and attract additional investors in the near and distant future.
Tulip Protocol is the very first yield aggregation platform to be built on Solana, and it features auto-compounding vault techniques. The dApp was developed to make use of Solana’s blockchain, which has a low cost and high efficiency, hence enabling the vault techniques to compound frequently. Stakeholders are able to reap the benefits of greater APYs as a result, without the need for active management.
On this week’s episode of “The Market Report,” Cointelegraph’s resident experts discuss the latest updates concerning the recent Solana (SOL) hack.
To kick things off, we broke down the latest news in the markets this week:
Bitcoin realized price bands form key resistance as bulls lose $24K, significant whale activity between $22,000 and $24,800 adds to the complexity of the current spot market setup. Bitcoin (BTC) consolidated lower on Aug. 9 after familiar resistance preserved a multi-month trading range. When will we finally break out of this price range and make the move towards $30K?
Institutions flocking to Ethereum for 7 straight weeks as Merge nears: Report, “Greater clarity” around the Merge has driven institutional inflows into Ethereum products, according to a CoinShares report. Is the ETH merge finally around the corner and will it bring new all time highs to ETH or has the price already been factored into the current price?
Circle freezes blacklisted Tornado Cash smart contract addresses, Crypto data aggregator Dune Analytics said that, on Monday, Circle, the issuer of the USD Coin (USDC) stablecoin, froze over 75,000 USDC worth of funds linked to the 44 Tornado Cash addresses sanctioned by the U.S. Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons (SDN) list. Could this mark the end for Tornado Cash or is there a way they can redeem themselves?
Next up is a new segment called “Quick Crypto Tips,” which aims to give newcomers to the crypto industry quick and easy tips to get the most out of their experience. This week’s tip: Have some funds ready to buy further downturns.
Market expert Marcel Pechman then carefully examines the Bitcoin and Ether (ETH) markets. Are the current market conditions bullish or bearish? What is the outlook for the next few months? Pechman is here to break it down. The experts also go over some markets news to bring you up to date on the latest regarding the top two cryptocurrencies.
After Marcel’s market analysis, our resident experts discuss whether your SOL is safe and the latest updates on the Solana hack. We also discuss why the network has been victim to so many hacks and downtimes. What exactly do these exploits mean for the Solana platform and if you should be worried.
Lastly, we’ve got insights from Cointelegraph Markets Pro, a platform for crypto traders who want to stay one step ahead of the market. The analysts use Cointelegraph Markets Pro to identify two altcoins that stood out this week: Radicle’s RAD and DigiByte’s DGB.
Do you have a question about a coin or topic not covered here? Don’t worry. Join the YouTube chat room, and write your questions there. The person with the most interesting comment or question will be given a 1 month free subscription to markets Pro worth $100!
The Market Report streams live every Tuesday at 12:00 pm ET (4:00 pm UTC), so be sure to head on over to Cointelegraph’s YouTube page and smash those like and subscribe buttons for all our future videos and updates.
Singapore, Singapore , Aug. 09, 2022 (GLOBE NEWSWIRE) — Today, the ZepetoX team (ZTX, ZepetoX.io) announced its foray into the web3 space, sharing its vision to build an open world that empowers creators and communities to build, play and earn.
ZepetoX is the crypto metaverse initiative jointly incubated by ZEPETO – Asia’s largest metaverse platform with over 320 million registered users – alongside leading global blockchain organizations including Jump Crypto.
As the sole blockchain project comprehensively backed by ZEPETO, ZepetoX will have exclusive ties to ZEPETO in terms of IP including technological, design, and content assets as well as bridges to facilitate user onboarding between the two platforms. ZepetoX’s blockchain development efforts will be advised by Jump.
“ZepetoX is our official venture into the blockchain industry. We feel that web3 opportunities should be advanced through a crypto-native approach, which is why we are excited to have Jump as a contributor to developing a new platform that would have exclusive connections to ZEPETO. Overall, we believe that ZepetoX can build the ideal web3 platform to not only bring blockchain to our existing users but also to expand our footprint in the blockchain space through various disruptive initiatives,” said Daewook Kim, CEO of Naver Z – the operating entity of ZEPETO.
“We are excited to support ZepetoX’s efforts aimed at onboarding new audiences into the rapidly growing crypto space. ZEPETO’s expertise and technological know-hows accumulated over the past years from building an immersive social platform will serve as a springboard for ZepetoX,” said Saurabh Sharma, Partner at Jump Crypto.
Building on the Solana network, ZepetoX will offer a web-based 3D open world with varying levels of gamification integrated as well as opportunities for users to monetize via ownership of digital assets and social interaction. Ultimately, ZepetoX aims to empower self-expression through customizable avatars and lands that can be equipped with NFTs from a rich collection of assets created by diverse creators, DAOs, or communities.
“I am thrilled to see IP powerhouses like ZepetoX choosing to build their metaverse on Solana,” said Anatoly Yakovenko, Co-Founder of Solana. “Projects like ZepetoX create new pathways for onboarding millions of users to web3.”
“Our global team brings a depth of crypto native experiences and our goal is to build on the foundation of ZEPETO to spearhead the adoption of blockchain among metaverse users, developers, and creators,” said co-CEO of ZepetoX, Chris Chang.
In the coming months, ZepetoX will launch its first land sale. The lands will be tradable on the ZepetoX marketplace, which will feature a variety of different NFTs as the open world project evolves. Further details on the sale will be available on the ZepetoX website in the coming weeks.
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About ZepetoX: ZepetoX (ZTX) is a web3 company building an immersive content-driven platform for users to create, trade digital assets and enjoy social interaction. Founded in 2022, ZepetoX is the blockchain initiative of ZEPETO, widely regarded as the largest Asia-based metaverse platform boasting over 320 million lifetime users with over 2.5 billion virtual fashion items sold.
