By Utulu HopeDeFi
The innovation will give users additional yield by completing easy steps made possible by three top platforms on Solana.
Yield-generating DeFi Partnership on Solana
Solend, Katana, and Zetamarkets have sealed a partnership deal to bring a unique product to Solana’s Decentralized Finance (DeFi) market. All three DeFi protocols have contributed their resources to launch cVaults, a yield generating product for users.
Following the partnership, users can now deposit cTokens obtained from Solend into cVaults on Katana The cVaults, powered by Zeta, will generate additional yield for users who deposit cTokens. As of writing, users stand a chance to earn up to 30% Annual Percentage Yield (APY) from Katana’s first cVault, cSOL. Through its April 4 Medium blog, Zeta announced that the cSOL vault would be the first of many. The platform also explained the unique cVaults product.
“cVaults leverage Solend’s cTokens to generate additional yield for users. Once you’ve minted a cToken on Solend, you can deposit this into a cVault on Katana — you are now earning the interest from the cToken + the yield from the vault. We’re going live with cSOL covered call vault, with more on the way!” the blog read.
cTokens on Solend are a “yield-bearing deposit receipt.” Users can convert tokens like SOL, USDC, ETH, and more to cTokens on the lending platform. For instance, users can convert SOL into a cToken on Solend—cSOL. When the specific cToken is minted, users can hold or use it on different DeFi protocols to keep earning interest. Thus, users can now utilize cSOL on Katana and earn profit through the supported cVault, cSOL Vault.
The innovation by the three platforms to bring a unique product is exciting for the Solana community. However, what’s more compelling is the ease of utilizing the vaults. Interested users can easily partake of the yield generating opportunity by minting cSOL on Solend and depositing the cSOL on Katana’s cVaults to earn profit.
Moving forward, more cVaults would be added to ensure users have more options to choose when minting cTokens on Solend to earn high APY on Katana. Refer to Zetamarkets Medium post to learn more about the unique yield-generating product.
Source : web3wire.news
