Deep Dive #5 | SolFarm | The First Yield Aggregation Platform Built on Solana

Introduction

Defi has brought a new era for decentralization. The most popular types of DeFi applications include in a free market is Decentralized exchanges (DEXs), Lending platforms, Stablecoins, Yield farming, Liquidity mining, Composability v.v.v. 

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SOLFARM is one of them, SolFarm is the first yield aggregation platform built on Solana with auto-compounding vault strategies

The decentralized application (dApp) is intended to take advantage of Solana’s low-cost, high-efficiency blockchain, allowing vault strategies to compound frequently. This enables stakeholders to benefit from higher APYs without the need for active management. users can provide liquidity similar to the Vault on Raydium AMM DEX.

Market Analysis 

In 2021, The global Crypto market cap is $1.46 trillion and Market Capitalization of Defi is $78,2 billion.

If the audience has ever participated in AutoFarm, Beefy Finance or Pancake Bunny in the and Etherum  Binance Smart Chain ecosystem. SolFarm will be a name you should not ignore at Solana ecosystem

Similar projects:

The first name cannot fail to mention is $YFI (Yearn.finance) with $137milion volume by day and a $1.2 billion market cap

Followed in 2nd place is $ALPHA (Alpha.finance) $40 million volume and many more projects like Auto, Alpaca, Harvest Finance, Beefy v.v.

But SolFram is still the leading name in the Solana ecosystem with $130 million total value lock.The market for yield aggregation platform is still huge and full of opportunities

Product Highlight 

​​Raydium v1 Autocompound

Currently, all Raydium vaults are supported with the following SolFarm Compounder v1 strategy. The user deposits their Raydium LP tokens into the vault. Rewards are harvested every hour and sold for LP constituents which is then added to LP and compounded. In the case of Dual Yield Vaults, minor asset exchange may be required to rebalance for LP add.

You can find our Medium guide here in SolFarm doc’s

To avoid users hopping in and out of vaults to game rewards, you will be required to keep your funds in the pool for at least 2 hours to avoid any penalties. If you withdraw before this period elapses, you will forfeit any rewards accrued during that time

Let’s wait and see which project SolFarm will support in Solana’s Vaults in the near future

Fees

At the outset, the fee structure will be as follows:

Controller fee: 0.01%

Platform Fee: 0.1%

Vault Fees: 0.0%

No deposit/withdrawal fees

Fees are taken from yield generated, there are no fees charged on principal deposits. Fees are subject to change in the future based on the needs of the platform.

With extremely low deposit/withdrawal costs on solana users can maximize their profits

Supported Protocols

Raydium – raydium.io/

Users can deposit their LP tokens into the vault and the strategy will auto-harvest rewards and add to LP via selling half of the rewards. 

RAY-USDT LP

RAY-USDC LP

RAY-SRM LP

RAY-SOL LP

RAY-ETH LP

STEP-USDC LP

MEDIA-USDC LP

COPE-USDC 

MER-USDC 

ALEPH-USDC

ROPE-USDC

TULIP-USDC

SNY-USDC

BOP-RAY

SLRS-USD

Or you can buy TULIP and staking in TULIP-USDC LP with high APY 

Wallet Support 

SolFarm supports most wallets available on Solana ecosystem Sol like Ledger, Sollet, Solong, Phantom v.v.v.

 Token Economy 

Token Distribution 

Total Supply: 10.000.000

Team: 2.000.000 – 20%

Advisors: 200.000 – 2%

Treassury: 1.200.000 – 12%

Liquidity Provision: 500.000 – 5%

Strategic & Growth: 1.200.000 – 12%

Liquidity Mining/Ecosystem: 4.800.000 – 48%

All team tokens are vested on-chain with a cliff of 6 months and 3 year linear vesting

Advisor/partnership tokens are subject to similar vesting periods 

The treasury bootstrap will be used for future protocol upkeep and possible protocol incentives, ie. buy back and burn with future revenue

Liquidity provision will be reserved for AMM liquidity if necessary and possible Fusion pool rewards

Token Utility 

The TULIP token is intended to be used for governance. On-chain governance is currently unavailable but is being developed by the Solana Foundation. When this is completed, the protocol will delegate governance to token holders. Holders will be able to vote on issues such as:

Platform Fees

Treasury Usage

Protocol Improvements

Pool Reward Weighting

Value Accrual such as buy back and burn, profit share

Unique Selling Point (USP)

SolFarm is the first yield aggregation platform built on Solana

As we all know, the first project is always noticed and receives the most support. By combining with Raydium (Dex, Amm, YeilFarming, Launchpad) as a tire 1 project on Solana 

Shows the rapid growth as well as the strong network of the SolFarm team

Up to now, SolFarm is still the top 1 in its field on Solana

Smooth DApp interface, easy to use

SolFarm’s dashboard fully support all the information that a yieldfarming needs even better


Deposited information,TVL,  Wallet balance, Daily Apr, Fees v..v.v And automatically update every 30 seconds to 1 minute all the above information

Interesting points SolFarm also shows you rewards since the last deposit/withdraw Is the first thing I see in a project yield aggregation platform Make it easy for users to check their profits

How to Farming on SolFarm

Create LP tokens on Raydium DEX

Step 1: Access Raydium here.

Step 2: Go to Liquidity, select the liquidity pair you want to create. Here I will add liquidity with the STEP/USDC pair.

Step 3: Click “Supply” and “Approve” on Sollet wallet. After successfully adding, you will see the LP token recorded in the Your Liquidity section.

Become a liquidity provider and farming  on SolFarm and 

Step 1: Visit SolFarm here.

Step 2: Connect the Sollet wallet that you created the LP token.

Step 3: Select the liquidity pair you want to Farm.

Step 4: Fill in the amount of LP tokens, click “Deposit” and “Approve” in Sollet wallet.

Step 5: After adding liquidity successfully, you will see the balance of LP tokens from Wallet Balance to Deposited.

Marketing & RoadMap

PR & Marketing

Telegram:  – There are more than 704 member

Twitter : – Has more than 19,000 followers.

Discord : Has more than 8900 member and 1000 active member daily (main communication channel)

Medium – Regularly post updates on the progress of a project

RoadMap

Currently, SolFarm has not updated the roadmap information on the homepage, there is only a little information about the upcoming plans of the SolFarm team as follows

Zap feature (Deposit/withdraw assets via SolFarm UI) (Delayed)

Audit with Solana Foundation (on waitlist)

v2 Plans (In development) 

Backer 

Investor

Investors: 

There is no investor information on SolFarm’s homepage and medium

Team

No LinkedIn information of SolFarm team, but it can be seen that they are all people with long experience in the field of crypto and experts in their field

Conclusion

Before embarking on projects in the DeFi (Decentralised Finance) space, users must understand the risks of projects and smart contracts. This includes risks unrelated to the project, such as impermanent loss, loss of funds due to stolen private keys, and so on. Users should adhere to common security best practices and exercise due diligence.

So this is not investment advice at all but will give you a DeepDive view of the project from which to make a good investment decision.Please DOYR (do your own research) carefully any project you want to participate in

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Source : bscdaily

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