We’ve already explained the reasons and consequences
of the anomalous growth of the SOL token. Given this substantial asset price surge, the spotlight is on investing in projects developed on the Solana blockchain rather than the network's native token.
Here are 5 promising DeFi projects on Solana that might offer a retroactive airdrop
for early users.
Given the surge in user engagement and the substantial increase in transaction volume on Ethereum, network fees have risen sharply. For instance, while the average Ethereum gas fee in October 2023 hovered around 8-9 Gwei
, it soared to over 150 Gwei by early November. Consequently, a basic ERC
token swap can cost around $50, and executing an NFT transaction might require upwards of $60.
Ethereum gas fees. Source: etherscan.io
Interestingly, Layer 2 seems to have inherited rather than alleviated the existing issues, prompting users to seek alternatives. With most altcoins in the Solana ecosystem having already surged by 100-200%, the focus should now shift to assets yet to hit the market. This includes native tokens of decentralized applications, some of which distribute their tokens through an airdrop.
Take Jupiter, a liquidity aggregator on Solana, for example. They've formally announced an airdrop of their token, hinting that similar developments may unfold with other platforms. Given the network's minimal fees, an affordable $20 investment enables active participation in multiple projects.
Jito is a liquid staking
protocol operating on the Solana blockchain. Platforms like these and their respective tokens have already attained substantial popularity on the Ethereum blockchain
, with notable examples including LidoDAO (LDO), Rocket Pool, Eigen Layer, and Frax Ether. Although these projects technically don't need an internal token, they've exhibited strong market performance and have garnered significant user interest.
Currently, Jito is the largest platform for liquid staking of SOL. As of the time of this article, Jito's Total Value Locked (TVL
) amounts to $324 million. To potentially receive future tokens, one must stake SOL coins on the protocol's website.
A unique feature on Jito's homepage is the "Points" section, where users accumulate special points based on their activities within the platform. It is speculated that these points might be convertible into the project's native token in the future.
Jito's homepage. Source: www.jito.network
Marginfi is akin to the previously mentioned protocol, but it boasts additional features. As of now, Marginfi's Total Value Locked (TVL) surpasses $100 million, with a significant portion of these funds locked in the Solana cryptocurrency.
Marginfi offers a range of activities on its platform, including:
- Accessing the platform's lending section, where users can either lend their assets at a passive interest rate or take out loans in cryptocurrency.
- Depositing SOL for DeFi staking with an annual return of 6%.
- Swapping tokens within the Solana network.
- Using the cross-chain bridge and investing tokens in the 'Earn' section.
The Points section on Marginfi. Source: app.marginfi.com
Similar to Jito, Marginfi features a point system where users can accumulate points through its referral program.
Drift is a derivatives trading platform that enables the trading of tokens with leveraged positions. As per DeFiLlama
, Drift's TVL stands at $30 million. On Drift, users can trade various cryptocurrencies including BTC, ETH, SOL, DOGE, APT, and BNB, among others, using leverage of over 20X.
For those aiming to receive retroactive airdrops, Drift offers several activities:
- Trading tokens and cryptocurrencies in both spot and margin sections, as well as token swapping in the "Swap" area.
- Staking and farming different assets in the "Earn" section.
- Using the lending protocol.
Drift’s interface. Source: app.drift.trade
Additionally, Drift periodically offers a prize pool of $40,000 for its top market makers, providing an opportunity for active traders to earn extra income.
Francium is a platform tailored for devising trading strategies in asset farming. Users can amplify their profits by employing leverage, hedging risks, and placing funds in lending schemes.
The platform supports trading with cryptocurrencies like SOL, ORCA, RAY, ETH, and stablecoins such as USDT, and USDC, among others. Francium's TVL currently stands at $15 million.
Activities available on Francium include:
- Engaging in token farming with leverage up to 4X.
- Exploring the "Innovation Zone" for farming and investing in illiquid or less popular coins.
- Utilizing the lending section of the protocol.
Francium’s interface. Source: francium.io
For risk reduction, it's often recommended to farm stablecoins
or pair them with relatively stable crypto assets like ETH or SOL. Users also have the option to vote on platform changes in the "Vote" section, with some projects offering additional points for such participation.
JPool is a liquid staking platform modeled on the likes of Jito. The platform's TVL currently stands at $30 million, showing a significant growth, tripling from October 16 to November 14, 2023. Users staking Solana (SOL) on JPool are rewarded with JSOL tokens, which can be utilized for various purposes like lending, farming, or exchanging for other tokens. The platform's yield sometimes surpasses an annual rate of 20%.
JPool’s interface. Source: jpool.one
Furthermore, JPool enables users to farm tokens paired with stablecoins, offering a flexible yield plan.
JPool is among many projects on the Solana blockchain that could potentially offer airdrops. To get a broader picture of Solana's ecosystem, one can refer to DeFiLlama, which lists platforms based on their locked funds. Notably, most of these platforms have not yet launched their native tokens.
Despite the generally positive trend in the cryptocurrency market, it's important to remain cautious. It's wise not to take on excessive risks when engaging with DeFi platforms, and to focus on those with a proven track record of reliability and liquidity.