{"time":1708611926305,"blocks":[{"id":"q9UFdlT3G0","data":{"text":"Introduction","level":2},"type":"header"},{"id":"cnbpr8ieMS","data":{"text":"The digital age has ushered in a revolution not only in the world of communication but also in the finance sector. Inside the core of this revolutionary change, one of the greatest innovations was created: the blockchain, which is a series of distributed ledgers held together securely on numerous computers around the world and is transparent and tamper-proof. In this same finance sector, there is a seismic shift that is driven by decentralised finance (DeFi). This creative ecosystem built on blockchain technology promises a future free from centralised authorities, unnecessary fees, and unclear operations."},"type":"paragraph"},{"id":"nXLrCdFFA3","data":{"text":"But with great potential comes growing pain. Ethereum, the early pioneer of DeFi, struggled with scalability and high transaction fees, limiting its accessibility and hindering its growth. This paved the way for Solana, a blockchain platform designed to address these very challenges. Created in 2017, the idea of Solana aimed to unlock the full potential of DeFi by offering blazing-fast transaction speeds, near-zero fees, and a user-friendly experience. It achieved this through a blend of innovative technologies, including Proof-of-Stake, Proof-of-History for efficient timekeeping and a hybrid consensus mechanism for faster transaction processing."},"type":"paragraph"},{"id":"feWtirT5uD","data":{"text":"This article pierces deeper into the world of DeFi, exploring:"},"type":"paragraph"},{"id":"k7EHp7F9BA","data":{"items":["The major principles and benefits of blockchain technology","How Ethereum spearheaded the DeFi revolution, but faced setbacks","Solana's emergence as a solution, offering speed, affordability, and scalability","The diverse and innovative DeFi applications built on Solana "],"style":"unordered"},"type":"list"},{"id":"BrrgT-HiSK","data":{"text":"So let's go through the exciting world of DeFi, where Solana is leading the charge towards a more accessible and inclusive financial future."},"type":"paragraph"},{"id":"o65GuEkmAK","data":{"text":"The Major Principles and Benefits of Blockchain Technology","level":2},"type":"header"},{"id":"K0vduR3wEj","data":{"text":"Blockchain technology can be described as the backbone of DeFi, offering several key principles and benefits that have revolutionized the financial landscape. They include:"},"type":"paragraph"},{"id":"3WqCJa_Zxr","data":{"text":"Decentralization, where blockchain eliminates the need for intermediaries unlike traditional financial systems controlled by centralized institutions. The transactions are recorded on a distributed ledger, accessible to everyone on the network, fostering transparency and trust."},"type":"paragraph"},{"id":"tHwIOpXq4n","data":{"text":"Data that are stored on a blockchain are tamper-proof and cannot be altered, ensuring the integrity and security of financial records. This removes the risk of fraud and manipulation, unlike traditional systems susceptible to human error or malicious activity."},"type":"paragraph"},{"id":"sIe0c-qKBp","data":{"text":"Getting control of your assets and engaging in financial activities by yourself is one other advantage brought by blockchain as it empowers individuals to control their own assets. They can lend, borrow, trade, and invest without relying on centralized authorities, fostering financial inclusion and self-reliance."},"type":"paragraph"},{"id":"06KNflu9vV","data":{"text":"What exactly then lead to the innovation built on blockchain- Defi?"},"type":"paragraph"},{"id":"GlmHzOCl3v","data":{"text":"How Ethereum Ignited the DeFi Revolution, but Faced Limitations","level":2},"type":"header"},{"id":"NxKjwP08-K","data":{"text":"Launched in 2015, Ethereum emerged as the first major platform to support the devs in the creation of DeFi applications. Its smart contract functionality enabled the creation of innovative financial instruments like decentralized exchanges (DEXs) and lending platforms, boosting the DeFi revolution."},"type":"paragraph"},{"id":"bNLw-V_mlh","data":{"text":"However, it could be said that Ethereum's success also presented challenges like:"},"type":"paragraph"},{"id":"peaR4cyjXS","data":{"text":"Lack of Scalability, as Ethereum's network architecture limited its processing capacity, leading to slow transaction speeds and high gas fees during periods of high activity. This made DeFi applications expensive and slow to use, hindering their mainstream adoption."},"type":"paragraph"},{"id":"i6CJ_cNGWn","data":{"text":"Also there came Network Congestion which grew as a result of the popularity of DeFi applications, further worsening transaction delays and fees. This frustrated users and created a barrier to entry for new participants."},"type":"paragraph"},{"id":"UdLT1i7K1P","data":{"text":"These limitations highlighted the need for a new blockchain platform capable of scaling efficiently and supporting the growing demands of DeFi applications. Hence, the Solana Ecosystem. "},"type":"paragraph"},{"id":"03KeEFB8Xn","data":{"text":"Solana's Emergence as a Solution, Offering Speed, Affordability, and Scalability","level":2},"type":"header"},{"id":"teRye8C37v","data":{"text":"Solana, launched in 2020, emerged as a response to these challenges, offering a unique architecture designed for speed, affordability, and scalability. Here's few features of Solana that gives it an edge over other networks on the DeFi space:"},"type":"paragraph"},{"id":"A-te3QohBe","data":{"text":"Blazing-Fast Transactions: Solana utilizes a combination of Proof-of-History for efficient timekeeping and a hybrid consensus mechanism called Proof-of-Stake with Byzantine Fault Tolerance (PoS + BFT). This innovative approach enables Solana to process thousands of transactions per second, significantly faster than Ethereum and so having a 0 carbon impact, making it energy efficient. "},"type":"paragraph"},{"id":"55AaipIlSw","data":{"text":"Near-Zero Fees: Unlike Ethereum, where transaction fees can fluctuate based on network congestion, Solana offers consistently low fees thanks to its efficient architecture and novel consensus mechanism. This makes DeFi applications on Solana more accessible and cost-effective for users."},"type":"paragraph"},{"id":"vc_vHFubTg","data":{"text":"Scaling Without Sacrifices: Solana's design prioritizes scalability, allowing it to handle a high volume of transactions without compromising performance(about 270bn transactions). This ensures that the network can accommodate the growing demand of DeFi applications without experiencing congestion issues."},"type":"paragraph"},{"id":"eORdmK7s9d","data":{"file":{"url":"https://publisher-ap.s3.eu-central-1.amazonaws.com/next-s3-uploads/dae280db-0ce1-434e-a1f2-95ed10977ba4/Frame-1376158029.png"},"caption":"A fig. showing the comparison between Solana and Ethereum network","stretched":false,"withBorder":false,"withBackground":false},"type":"image"},{"id":"uDf1PpXPiQ","data":{"text":"The Diverse and Innovative DeFi Applications Built on Solana","level":2},"type":"header"},{"id":"pfQu8y3m_8","data":{"text":"With the advantages that the Solana ecosystem poses, devs now look to this as a safe haven for building decentralized applications, or like we call it Dapps. Let's take a look at some defi apps created in the ecosystem and how they operate. "},"type":"paragraph"},{"id":"G501BKD4B1","data":{"text":"Before going further, purchasing the native token of Solana ecosystem is necessary to understand, and this could be done by purchasing on centralized exchanges like binance, bybit, huobi, etc, or Decentralized wallets like phantom and solflare wallet. "},"type":"paragraph"},{"id":"BLuTgLZeX2","data":{"text":"Beyond the Basics: Solana hosts a variety of DeFi applications, including"},"type":"paragraph"},{"id":"Wm9M4dXbTa","data":{"items":["DEXs like Step Finance, Raydium and Jupiter","Lending platforms like Kamino Mango and Marginfi Markets, and ","Yield farming protocols like Orca, Saros and Marinade Finance. These applications offer users diverse ways to lend, borrow, trade, and invest in a decentralized manner. ","Another interesting DeFi application would be the socialfi apps like access protocol where creators earn as they create contents for subscribers. "],"style":"unordered"},"type":"list"},{"id":"vkNxiyR_KE","data":{"text":"Now let's take one from each category and break them down"},"type":"paragraph"},{"id":"f6tz45Y_wH","data":{"text":"DEX: In a particular blockchain network, there's a lot of tokens built on it. What if you had a chance to swap your pre-owned asset for another one that's on the blockchain? Would you do it? Well that's where dexes come in. These are exchanges where users swap tokens for each other without the need for centralized authorities. We've got Raydium, Jupiter and Step Finance as examples here. As seen in my previous article on on-chain activities, engaging in these swaps can potentially unlock valuable incentives. Developers often use airdrops to reward users and encourage participation, promoting both security and decentralization within the ecosystem. Jupiter, for instance, rewarded users who swapped or performed transactions on their platform with airdropped tokens. While Step Finance hasn't officially announced an airdrop, it's never too early to get familiar with their platform and explore the potential benefits of participating in DeFi activities."},"type":"paragraph"},{"id":"cAUeRe0xgT","data":{"text":"Lending and Borrowing: Here, you harness your crypto assets to earn rewards while contributing to a secure and decentralized network. This innovative system allows users to either supply their assets to a platform or borrow funds, each contributing to the platform's stability and decentralization."},"type":"paragraph"},{"id":"zjqVRPWz_O","data":{"text":"Lending: By supplying your assets (like bSOL) to platforms like Marginfi or Kamino, you essentially loan them out to others. In return, you earn a handsome annual percentage rate (APR) and potentially additional token rewards. This incentivizes participation and strengthens the platform's liquidity pool, which is crucial for smooth borrowing and trading."},"type":"paragraph"},{"id":"FWp30dC0tt","data":{"text":"Borrowing: Need temporary access to funds? DeFi platforms allow you to borrow against your existing crypto holdings. This offers greater flexibility than traditional loans, often with lower interest rates and no centralized authority involved. Just remember, borrowing responsibly is key!"},"type":"paragraph"},{"id":"jvCeyzbFQ5","data":{"text":"Empowering the Ecosystem: By participating in lending and borrowing, you're not just earning rewards; you're actively contributing to the decentralized finance ecosystem. This strengthens the network's security and promotes a more equitable financial landscape."},"type":"paragraph"},{"id":"jqlFKgdZO4","data":{"text":"This tutorial video dives into two powerful tools: Step Finance for seamless token swaps and Kamino Finance for profitable lending and borrowing."},"type":"paragraph"},{"id":"CH20hzAWrB","data":{"embed":"https://www.youtube.com/embed/OY-0s0r848A","width":580,"height":320,"source":"https://youtu.be/OY-0s0r848A","caption":"A guide on how to use Step finance, Solblaze and Kamino finance","service":"youtube"},"type":"embed"},{"id":"rD8C1W7d4d","data":{"text":"Another category is Yield farming, also known as liquidity farming, allows you to amplify the potential of your crypto assets on the Solana blockchain. It empowers you to earn additional rewards by depositing your holdings into platform pools or staking them directly. These rewards are typically expressed as Annual Percentage Returns (APRs), offering passive income opportunities."},"type":"paragraph"},{"id":"xKZXx-I-YQ","data":{"text":"Here is an example: imagine depositing your SOL tokens into a pool on a platform like Orca, a popular yield platform on Solana. By adding liquidity to the ACS/SOL pool, you'll not only earn a competitive APR but also receive $ACS tokens as additional rewards. This incentivizes users like you to participate, ultimately increasing the overall liquidity of the platform and benefiting the entire ecosystem."},"type":"paragraph"},{"id":"r44Irlm6p0","data":{"text":"Here's what makes yield farming attractive:"},"type":"paragraph"},{"id":"IazA9T3rok","data":{"items":["Earn Passive Income: Grow your crypto holdings without actively trading.","Diversify Your Portfolio: Explore different tokens and platforms for potential gains.","Support the Ecosystem: Contribute to the liquidity and stability of the Solana network."],"style":"unordered"},"type":"list"},{"id":"Kt8cSRnd1Y","data":{"text":"Another video tip on how to add liquidity using the orca platform. "},"type":"paragraph"},{"id":"FIqNU7J_r-","data":{"embed":"https://www.youtube.com/embed/SNISvD-o6sM?","width":580,"height":320,"source":"https://youtu.be/SNISvD-o6sM?si=hA74IgQIj9ZVOrgA","caption":"","service":"youtube"},"type":"embed"},{"id":"RzlkGgtRR5","data":{"text":"By staking on the Solana blockchain, you can increase the earning potential of your digital assets. To enhance network security and receive enticing rewards, staking entails locking your tokens in a smart contract. This easy-to-use but effective tactic can raise your yield considerably and set you up for future benefits."},"type":"paragraph"},{"id":"wUdWw70SgD","data":{"text":"I will use SarosFinance as an example here; it is an easy-to-use platform that makes staking easier for Solana users. Staking different tokens, including SAROS, is simple with their user-friendly UI. The accompanying video provides a comprehensive how-to for staking SAROS using Saros Finance, guaranteeing a safe and easy transaction."},"type":"paragraph"},{"id":"GE0py3gd7y","data":{"embed":"https://www.youtube.com/embed/v9inAkkS254?","width":580,"height":320,"source":"https://youtu.be/v9inAkkS254?si=f1j2d4sHrc4oolJ2","caption":"","service":"youtube"},"type":"embed"},{"id":"ymc5ZZmqsM","data":{"text":"SocialFi: This revolutionary concept takes shape with AccessProtocol, a leading content creation platform built on Solana that acts as a lifeline for creators in the exciting world of Web3. Check out how to go about access protocol via this well detailed Twitter thread "},"type":"paragraph"},{"id":"aPMrdq4Xa4","data":{"text":"Conclusion","level":2},"type":"header"},{"id":"Y6EmSeTvdS","data":{"text":"So whether you're a DeFi newbie or a seasoned degen, the Solana ecosystem welcomes you with open arms. With its blazing-fast speed, low fees, and thriving community, Solana offers a unique playground for exploring DeFi activities. Swap tokens with ease on Raydium, lend and borrow on Kamino, or join the yield farming revolution on Orca. The possibilities are endless!"},"type":"paragraph"},{"id":"MLmrDgZnjH","data":{"text":"Developers are also included, Solana's robust infrastructure and passionate community make it a prime platform to build your next dApp. Ditch the Ethereum gas woes and embrace the future of DeFi development. By joining the Solana ecosystem, you'll contribute to a more inclusive and accessible financial system, shaping the future of finance on your terms."},"type":"paragraph"},{"id":"pGZ4dDYudu","data":{"text":"Start exploring, start building, and experience the power of DeFi on Solana!"},"type":"paragraph"},{"id":"H3GcQadsNy","data":{"text":"Special shoutout to @LamportDAO, @heliuslabs, @SolanaCollectiv, and @SuperteamEarn"},"type":"paragraph"}],"version":"2.26.5"}