Try Quests to earn SOLSolend TVL Tracking
On August 17th, Solend announced their permissionless pools, where anyone can now create a pool. https://twitter.com/solendprotocol/status/1560003756736925696 How has this influenced user behavior on Solend so far compared to prior user activity? How many users have used a permissionless pool? What is the % of TVL contributed from isolated and permissionless pools, against the main pool over time? What is the amount/% of TVL that comes from PDAs/integrations or DAOs/Realm addresses, instead of normal signers? Overall how healthy does Solend appear as a protocol and is it gaining traction in the Solana ecosystem?
What is Solend ?
- Solend is the autonomous interest rate machine for lending on Solana Lending and borrowing has proven itself as being key in a DeFi ecosystem.
- However, current products are slow and expensive. On Solana, Solend can scale to being 100x faster and 100x cheaper. Solend aims to be the easiest to use and most secure solution on Solana.[1]
What are Permissionless Pools?
Permissionless Pools are Isolated Pools that anyone can launch. To recap, an Isolated Pool is a separate lending pool with a set of assets that can be cross borrowed. This allows long tail assets to be listed, and special pools with higher LTVs to be created. Permissionless Pools extend Isolated Pools by allowing anyone to list their own isolated pool, accessible on solend.fi. What’s more, Permissionless Pools share fees with the creator of the pool, creating a new revenue stream for anyone who wants to create a pool.
What Permissionless Pools will you create? Think about it. Then let us know, because Solend will be featuring the best Permissionless Pools after launch.[2]
Why are Permissionless Pools useful?
Permissionless Pools are exciting for many reasons.
List everything
- Like Uniswap did for tokens in DeFi Summer, Solend Permissionless Pools will unlock utility for the long tail of assets.
- Solend currently has 47 assets across 16 pools, which is more than any other lending protocol. Solend has been roughly keeping to a schedule of launching one asset a week ever since Isolated Pools launched months ago. However, this is still just a fraction of the thousands of tokens available, and we’ll never be able to list everything users want at this rate. Permissionless Pools remove Solend as a gatekeeper, allowing any token to be listed. Everything can be listed, without having to wait on anything or anyone.[2]
Long or short anything on day zero
With Permissionless Pools, people gain the ability to long or short any token. As long as there’s a lending market, USDC can be borrowed to buy more tokens (leverage long), or tokens can be borrowed to be sold short.
This is useful for the many projects with evidently flawed tokens. You can now put your money where your mouth is and short the token instead of being limited to trolling on Twitter.[2]
Borrow against anything
Teams can get access to liquidity without having to sell their tokens. With Permissionless Pools, a pool can be spun up with the project token to allow holders to borrow USDC. This eliminates the need for team members to be forced to sell their tokens if they need liquidity.[2]
Are users influenced by Permissionless Pools?
- To answer this question we look at various metrics like TVL and Number of Wallets.
- Looking at the TVL supplied before and after we don’t see any considerable difference in TVL, it is following the normal pattern since the beginning of the month.
- Number of Users interacting with various pool types doesn’t see any difference overall, but we do see wallets supplying to Permissionless pools increasing, in the past few days it actually account for ~10% of the total.
Amount/% of TVL contributed isolated vs permissionless vs main pool over time?
- Since the beginning of August Isolated Pools has been the majority contributor of Supply TVL, with Main and Permissionless Pools contributing a bare minimum.
- Aug 24, saw the permissionless pool contributing a significant amount as compared to other pools in terms of percentage, which is most likely due to incomplete data for today.
- Aug 16, 2022 saw Main pool somewhat compete with the Isolated Pools.
- Looking at the amounts supplied Aug 5 was particularly notable with huge amount of STEP and xSTEP supplied to Solend.
How is Solend doing overall ?
- Overall Solend seems to be doing pretty well, there seems to be a lot of user activity across all the main and isolated pools.
- The Supply and Borrow metrics look healthy as well.
- Permissionless Pools seem like game changer and could actually contribute to Solend in a huge way with due time and as the word spreads amongst other population and chains.
Methodology
- Refer to the SQL Credits section for the base queries for supply and borrow tokens for each pool type.
- Once we have the borrows and supplies we join each token against the token price.
- We consider TVL as the amount of tokens supplied in $USD
- We are analyzing since the beginning of August for prior activity history.
- Note: The TVL in $USD terms seems way off, possibly due to the token prices, since we don’t have a balances table in Solana.