Solana DeFi Revival: Review of Ecosystem Projects' Progress in Q3 and Outlook for Q4
The Solana DeFi ecosystem is expected to achieve significant growth in the fourth quarter, similar to the development from the foundational phase of a skyscraper to equipping its upper levels with complex features.Original author: FA 2, co-founder of SolanaFM
Compiled by: Odaily Planet Daily
The DeFi universe of Solana has been efficiently built in the third quarter, filled with creativity and a spirit of experimentation. From experienced developers to enthusiastic community members, everyone has "rolled up their sleeves" to lay a solid foundation for the skyscraper of financial innovation.
This is not just a simple stacking of bricks and stones, but rather a carefully designed structure. Developers and community contributors are collaborating to ensure that unique value is added to the entire structure. The result is an ecosystem that is continuously growing and evolving in exciting and unpredictable ways.
Here are some highlight statistics:
TVL Growth: The TVL in Solana DeFi grew by 21%, from $268 million to $327 million.
Daily Active Wallets: The number of daily active wallets fluctuated between 230,000 and 350,000.
Trading Volume: Even excluding major players like Zeta Markets and Phoenix, trading volume fluctuated between $15 million and $162 million.
In addition to these numbers, several noteworthy events have catalyzed the Solana ecosystem:
MakerDAO aims to utilize Solana's Virtual Machine (SVM).
Maple Finance returns to Solana.
EUROe stablecoin launched on Solana.
CNBC's evaluation of Solana surpasses BCH and LTC.
Let’s take a look at what the team built in Q3 and what we can expect in Q4.
Derivatives and Synthetic Assets
There has been a lot of activity in the derivatives and synthetic assets space. Here are the details:
Zeta Markets
Q3 Review:
New V2 Upgrade: Enhanced system architecture for improved performance.
New User Interface: A simplified and user-friendly trading experience.
Portfolio Page: Real-time tracking of assets and trades on a single dashboard.
USDC-based Perpetual Trading: Introduction of new USDC-based trading options.
On-chain Order Book: On-chain speed akin to Nasdaq.
Q4 Outlook:
Faster Trading: The team plans to accelerate trade execution times.
New Incentives: Aiming to launch rewards and incentives to attract and retain users.
Drift
Q3 Review:
Weekly Active Users: Reached a historic high of 1,800 on August 21.
TVL Growth: TVL increased by 50%, now reaching $13.2 million.
New Features:
Leverage Swap: Providing users with more trading options.
Drift Liquidity Providers (DLP): Added over $7 million in liquidity to the platform.
Q4 Outlook:
MetaMask Integration: To facilitate easier user onboarding and interaction.
Collaboration with Circuit Vaults: Introducing additional liquidity.
These developments indicate that Drift will further enhance usability and user base in Q4.
Cypher
Q3 Review:
TVL Growth: TVL increased tenfold in less than three months.
Security Vulnerability: The platform was affected by a security vulnerability, which later became a focus for improvements.
Q4 Outlook:
Issue Resolution: Working to resolve security issues and restore user trust.
IDO: Planning to launch the $CYPH token as part of a recovery and expansion strategy.
The upcoming IDO and ongoing security improvements aim to restore confidence and lay the groundwork for future growth.
Liquid Staking Tokens (LST)
In the third quarter, several key innovations emerged to further expand the use cases of LST.
Marinade
Q3 Review:
User Growth: Marinade's user base exceeded 74,000.
TVL: TVL reached $146 million.
New Product Launch: Marinade Native launched in July, attracting 1.78 million staked SOL within a month.
Q4 Outlook:
Upcoming Incentives: Marinade has indicated that new incentives will be launched in Q4, but specific details have not been disclosed.
Marinade achieved significant growth in Q3, expanding its user base and launching a successful new product. The platform is keeping details of its Q4 plans under wraps, but new incentives are on the way.
JitoSOL
Q3 Review:
TVL Growth: TVL increased by 100%, rising from 740,000 SOL to 1.62 million SOL in Q3.
Referral Program: Launched a new referral program to enhance user engagement and adoption.
Q4 Outlook:
Potential Developments: The platform is exploring the possibility of launching new tokens and expanding its referral rewards system.
JitoSOL made significant progress in Q3, particularly in TVL growth and user engagement through its new referral program. It is poised for potential innovations in Q4, keeping the community eager.
SolBlaze
Q3 Review:
Token Launch: SolBlaze successfully launched its new native token $BLZE.
Market Cap: The initial fully diluted market cap (FDMC) was $2.8 million.
TVL Growth: TVL surged tenfold, increasing from $631,000 to $7.29 million.
Airdrop: Introduced a unique SolBlaze score metric for airdropping $BLZE tokens based on various factors like staking and referrals.
Q4 Outlook:
Upcoming Features: The platform plans to introduce new features, including a BLZE scale for transparent and fair reward distribution and a bribery mechanism for incentivizing staking.
SolBlaze generated buzz in Q3 with the launch of the $BLZE token and rapid TVL growth. As it enters Q4, the focus will be on enhancing platform utility and user incentives through new features.
Sanctum
Q3 Review:
Reserve Pool: Sanctum has established a reserve of over 200,000 SOL.
Partnerships: In discussions with NFT markets regarding the use of LST.
Q4 Outlook:
Upcoming Features: Sanctum has not released specific details but indicated that new features are in the works.
Sanctum made progress in Q3, particularly in accumulating a substantial reserve pool and initiating partnership negotiations. Details of its Q4 plans remain undisclosed.
Lending
The lending sector has been a driving force behind the rise of Solana's TVL. With the introduction of new incentives from the two largest lending protocols on Solana and a points system, the TVL in this area has been steadily climbing. As we delve into the metrics, innovations, and upcoming features, it is clear that this sub-industry is laying the groundwork for further growth in Solana's DeFi ecosystem.
MarginFi
Q3 Review:
TVL Surge: MarginFi's TVL increased tenfold, rising from $2 million in July to $23.82 million now.
Market Context: Of the $10 billion staked in Solana, only 3% is in LST.
Q4 Outlook:
Upcoming Features: The team plans to launch a stable swap platform and their own stablecoin $mUSD in Q4.
Reward System: It remains unclear whether the introduced points system will translate into native tokens or stablecoin rewards for the community.
MarginFi achieved remarkable success in Q3, characterized by rapid TVL growth and integration with the Solana staking environment. In Q4, the platform aims to further diversify its offerings and potentially introduce a unique rewards system.
Solend
Q3 Review:
TVL Growth: Solend's TVL grew by 50%, climbing from $30.37 million to $54.23 million.
User Engagement: Introduced new features such as margin and points systems. The margin feature provides a trading view, while the points system rewards users for activities like deposits and trades.
Q4 Outlook:
Future Developments: Plans for Q4 include more support for liquid staking tokens (LST) and the introduction of pools for RWA assets.
Solend made significant strides in Q3, both in terms of TVL and user engagement features. Q4 aims to build on this momentum with new asset support and further financial tools to expand the platform's utility and reach.
Kamino Finance
Q3 Review:
Trading Volume: Kamino Finance facilitated over $1 billion in trading volume.
Revenue: The protocol generated $1.25 million in fees for its depositors.
User Tools: New features include a creator vault for user-generated market strategies and comprehensive analytics for tracking performance metrics.
Q4 Outlook:
Next Version: Kamino 2.0 is set to launch in Q4, promising additional features to further expand its utility within the Solana DeFi ecosystem.
Kamino Finance made significant progress in Q3, particularly in trading volume and user-generated tools. The anticipated Kamino 2.0 Q4 release is expected to continue this trajectory, adding more features and capabilities.
Lifinity
Q3 Review:
Generated $220,000 in protocol revenue over the past three months.
90% of which is either directly allocated to token holders or used for repurchasing LFNTY tokens.
Added pools for JitoSOL, bSOL, HNY, and FIDA.
Q4 Outlook:
Lifinity V2: The team has developed a delta-neutral market maker, set to launch in the coming weeks.
Conclusion
In summary, the Solana DeFi ecosystem is poised for significant growth in Q4, much like the transition from the foundational phase of a skyscraper to equipping its upper levels with complex functionalities.
With a series of incentive programs, plans to attract liquidity from various sources, and improvements in user experience, the outlook for Solana's DeFi in Q4 appears optimistic.
