Over the past year, the Solana DeFi Ecosystem has gradually been built from its fundamental blocks and soared to current achievements thanks to its fast transaction processing capability (50,000 TPS), low latency (~1s), and low fee (10$ for 1M transactions). These factors give Solana a strong chance of gaining widespread adoption, satisfying the demands of hundreds of millions of users.
DeFi on Solana, on the other hand, hasn't taken off yet since it hasn't realized the potential of its blockchain ecosystem. The fact that the number of assets on Solana is still limited is one of the leading causes of this difficulty.
Assets are crucial for users to engage with protocols to borrow, lend, trade, and so on. With them, DeFi protocols can develop rapidly.
This is why we are building the first super-network on Solana, a network equipped with a technically strong AMM to bootstrap liquidity while maintaining high liquidity through pools.
In hindsight, Ethereum DeFi owes its success mainly to its asset-rich ecosystem after the wild ICO wave of 2018. Another recent example is Binance Smart Chain's success with its popular meme-coins.
Solana now has 775 assets, whereas Binance Smart Chain and Ethereum have more than 1 million and 450,000 assets, respectively.
Solana builders face many obstacles when it comes to issuing assets, three of them being:
(1) Difficulty in bootstrapping the initial liquidity
(2) Difficulty in maintaining and managing the liquidity
As one of the early builders on Solana, we believe these are the primary obstacles that need to be addressed as soon as possible to unlock the hypergrowth of the ecosystem.
Introducing Saros Finance
Saros Finance is a Solana-based Unified Suite of DeFi Products with three fundamental building blocks: SarosSwap (AMM), SarosFarm (Pool), and SarosStake with SarosSwap being the core of the entire ecosystem.
SarosSwap is a decentralized automated liquidity protocol built on Solana, allowing users to exchange SPL tokens.
We believe AMM has the upper hand over CLOB-Based DEX regarding creating and managing liquidity easier users' habits, liquidity creation & management, and hype generation.
An established habitual product
Over the past two years, DeFi users have been educated on how to exchange assets using Uniswap, PancakeSwap, and a variety of other AMMs instead of order book DEXs. Most retail investors have become familiar with AMMs, so it would be difficult to change their habits.
A tool for simplified liquidity creations & management
AMMs simplify liquidity creation for both holders and builders.
Using AMMs will make creating and managing liquidity easier for builders because the popularly used x*y=k AMM design optimizes passive liquidity provision. Builders, therefore, can focus on their top priority: product development.
Moreover, AMMs transform holders into passive market makers, which also increases their “skin in the game” with the project.
A hype-generation machine allowing price discovery at ease
In the crypto industry generally and DeFi specifically, retail investors are vital to pushing the ecosystem forward via assets investing and speculating. To attract these players, we need to showcase the investment potentials by a price discovery machine.
AMMs are designed to enable the assets to reach their price discovery stage as quickly as feasible, attracting speculators and degens from other blockchains to Solana.
How is SarosSwap different from other AMMs?
Technically, SarosSwap uses the same x*y=k formula as other AMMs on the market, namely Uniswap and PancakeSwap. The focus on UX/UI and Gamification will set SarosSwap apart from the competition.
One of the most common problems that Builders encounter is growing the assets’ liquidity after the project's launch. On Solana, project owners must currently build incentives by using liquidity mining programs, which fragments the liquidity providers as they have to constantly hunt for projects with such programs.
To solve this problem, we introduce SarosFarm, an aggregation platform for different incentivized pools to assist projects rapidly and gradually increase their liquidity.
SarosStake is the simplest way to earn free tokens on Saros Finance. All you have to do is stake SAROS and earn free tokens while you sleep. It’s really that easy. We will also offer special pools that let you stake other tokens besides SAROS, too!
What is the difference between SarosStake and farming/auto-compounding?
SarosStake is basically simpler than farming with SarosFarm, since you only need to stake one token to start earning: usually SAROS. Yield-farming provides attractive APYs at the cost of being subject to impermanent loss. For example, if you're farming with SAROS-SOL, you might lose out on potential gains if SAROS goes up and SOL stays still. High risk, high reward. Instead, you can simply stake your SAROS tokens to earn yields with no impermanent loss (IL) and maximize your profits when SAROS prices go up. Rewards compound automatically, and you don't need to do anything besides clicking the stake button.
Building a Powerful DeFi Super-Network
We have built Saros Finance with multiple protocols to create a super-network attracting builders and users to the Solana Ecosystem.
SarosSwap will maximize price discovery, drawing retail investors to Solana.
SarosFarm and SarosStake will entice and engage liquidity providers, resulting in a large inflow of funds while simplifying and accelerating liquidity bootstrapping and encouraging new projects to be built on Solana.
And obviously, Saros Finance will not limit only to 3 building blocks but will continue to branch into various protocols to satisfy the demands of future users.
A New Solana-Focused Product Built by Coin98 Labs
Started as a DeFi product builder, Coin98 Labs continuously grows the ecosystem and launches new products to fulfill untapped demand in the space. After building proper infrastructure for the multichain future, we explore the possibilities of building products on the specific potential blockchains.
And now, with Saros Finance, we will let Coin98 Universe expand first to Solana - the wonderland for DeFi apps to scale.
We will keep moving forward and contributing to the blockchain space but not limited to only one land. As a result, all Coin98 Ecosystem accrual values will be brought back to the Coin98 Community.
Ready to Launch
As of now, Saros Finance is at the completion stage for the three protocols. From the bottom of our hearts, we wish to introduce Saros Finance to all of our supporters so that we can build a strong and connected Solana, together.
Join us on this journey!