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Last updated
Last updated
As the TVL and the activities in derivative trading increase, two phenomena are reshaping the landscape of the DeFi ecosystem: the dramatic increase in the total amount of interest-bearing assets and the widespread adoption of AirdropFi.
At the heart of this transformation, NX Finance stands as a visionary platform, designed to harness these emerging trends and offer tailored strategies to satisfy different user demands
Currently, interest-bearing assets are primarily LP (Liquidity Provider) positions in Perpetual Dex and LSTs (Liquid Staking Tokens) on Solana. Among these, the Jupiter Exchange stands out as a representative product for Perpetual Dex, while platforms like Jito, Sanctum, and The Vault are known for issuing LSTs.
The substantial increase in on-chain capital has created a demand for high-capacity, low-risk DeFi yield opportunities within the Solana ecosystem. However, the lack of yield aggregation protocols presents significant barriers, such as high education and time costs for users navigating different protocols. Additionally, the independence of each protocol results in low utility for their tokens.
NX Finance identified this tremendous opportunity for explosive growth in the demand for both PerpDex trading derivatives and LSTs, aiming to replicate the prosperous DeFi narrative of Ethereum on Solana.
Jupiter, in particular, has distinguished itself within this space through its JLP, which offers an annual percentage yield (APY) of 226%. Such high returns are a significant draw for yield-seeking users who are keen on maximizing their earnings through leveraged positions.
The price of JLP has experienced a significant increase, rising from 1.764 to 2.962 since January 1, 2024. This upward trend is attributed to substantial trading activity involving JLP.
Flashtrade operates on the same underlying principles as Jupiter Perpetual Exchange, but Flashtrade introduces a variety of trading pools to provide users with perpetual contract trading opportunities for a comprehensive range of assets within the Solana ecosystem.
Recent months have seen impressive growth in Flashtrade's trading volume, correlating with an enticing return rate for FLP assets.
Recognizing this, NX Finance has crafted a leverage strategy - Fulcrum Strategy that aiming to surpass the yields offered by other protocols and FLP pools in coming Q3. This strategy leverages the liquidity and volatility of the Solana PerpDEX market, thereby providing a lucrative option for traders seeking to amplify their investment outcomes.
As a leading perpetual DEX within the Ethereum ecosystem, GMX has announced on its governance forum the decision to deploy GMX v2 on Solana, rebranded as GMSOL.As the pivotal hub of the Solana DeFi ecosystem, we are committed to integrating the new platform immediately upon its official launch, ensuring seamless access to innovative financial solutions.
NX Finance has sensed the demand from users for leveraged returns on such assets and is continuously integrating more LST assets to provide yield leverage.Two notable projects in this space are Vault Finance and Sanctum.
In the first two quarters of this year, we were pleasantly surprised to find that the overall staking rate on Solana has been steadily rising, reaching 6% of the total volume, bringing about $3.5 billion in almost risk-free assets with an APR of 7% within the Solana Ecosystem . These assets have become an indispensable category for all Solana DeFi users.
The Vault, a rising star in Solana's LST sector, is distinguished by its innovative approach that aligns its interests with the entire Solana Network. It is a platform specializing in vSOL liquid staking, allowing users to stake their SOL tokens and earn rewards. It focuses on providing a seamless staking experience with a high level of security and ease of use. Furthermore, The Vault aims to establish a community consensus-driven LST protocol within the Solana ecosystem. With significant potential, The Vault has accumulated $58 million in TVL in just one month.
By offering LSTs, Sanctum enables users to stake their assets while maintaining liquidity. The platform aims to provide an intuitive experience for staking and managing assets, with a focus on maximizing returns and maintaining flexibility. Sanctum currently ranks 3rd in TVL within Solana's LST sector. As a renowned LST protocol on Solana, Sanctum holds significant influence and substantial capital within the DeFi ecosystem. Therefore, integrating Sanctum will inject new vitality into NX Finance, enhancing both user growth and liquidity.
By integrating The Vault and Sanctum, NX Finance can provide diverse and robust yield leveraging opportunities, catering to different risk preferences and maximizing potential returns for its users within the Solana DeFi ecosystem.
The AirdropFi model is recognized for its role in engaging users before a protocol's official launch by distributing points that can be exchanged for the protocol's tokens. Although not revolutionary, the implementation of AirdropFi presents a distinct set of challenges, particularly in addressing the diverse needs and perceptions of users towards these points.
A significant gap exists between users who may not perceive the tangible value of points due to their non-transferability and those who avidly collect them in anticipation of future benefits.
