Overview of Solana Decentralized Finance Ecosystem: Main Products and Development Trends

The DeFi trading volume on Solana continues to grow, with the average daily spot DEX trading volume reaching $1.5 billion in the first quarter, a month-on-month increase of 319%. This is mainly driven by Memecoin trading, particularly tokens such as SLERF and BOME. Solana has become the preferred choice for retail and Memecoin traders due to its extremely low transaction fees and fast transaction confirmations. Against the backdrop of a steady rise in SOL prices, the total locked value (TVL) of Solana has also grown to $4.311 billion. Similar to other public chains, Solana's TVL is primarily composed of DEX, LST, lending platforms, and perpetual contract exchanges.

Decentralized Exchange (DEX)

The main DEX on Solana include:

1. Raydium: TVL approximately 965 million USD, 24-hour trading volume approximately 650 million USD.
2. Jupiter: TVL approximately 596 million USD, 24-hour trading volume approximately 818 million USD.
3. Orca: TVL approximately 236 million USD, 24-hour trading volume approximately 596 million USD.

Raydium allows users to create liquidity pools and was once the preferred platform for meme coin issuance. However, with the rise of specialized meme platforms, Raydium's influence may gradually decline.

Jupiter as a liquidity aggregator can find the best trading paths across all major DEXs on Solana. It also offers perpetual contract trading, allowing users to trade with leverage of up to 100 times.

Orca has long been at the forefront of Solana DEX with its slogan "DEX for people, not programs," featuring a concentrated liquidity market-making mechanism called Whirlpools, similar to UniswapV3.

Liquid Staking (LST)

The main LST projects on Solana include:

1. Jito (JitoSOL): TVL $1.705 billion, APY 8.26%.
2. Marinade (mSOL): TVL 1.413 billion USD, APY 7.44%.
3. BlazeStake (bSOL): TVL $275 million, APY 7.06%.

Jito quickly became a leader in the field after launching the airdrop points program in September 2023. The eligibility for JitoSOL users to participate in the airdrop is determined by their points ranking, with the lowest tier able to receive 4941 Jito.

Marinade focuses on native staking, with a locked amount close to Jito, but its market cap and FDV differ by several times, indicating potential growth space.

BlazeStake is the third largest LST project in the Solana ecosystem, with a lower FDV compared to Jito, and may require a higher APY to attract users.

Lending

Save (formerly Solend) is the main lending protocol on Solana. It uses the PYTH oracle to provide price data to enhance security. Currently, the demand for lending in the Solana ecosystem is not high, and a new lending protocol, Marginfi, is about to be launched.

Derivatives

The main derivatives platforms on Solana include:

1. Drift: TVL 360 million USD, FDV 530 million USD.
2. Flash Trade: TVL 14.69 million USD, FDV 550 million USD.
3. Zeta Markets: TVL 9.7 million USD, no tokens issued yet.

Drift is a multifunctional integrated DEX that offers pre-market trading, 20x leverage, and collateralized lending services.

Flash Trade utilizes a unique multi-asset pool system and NFT structure to ensure zero price impact through a pool-to-point trading model.

Zeta Markets focuses on providing liquidity and under-collateralized derivatives options and futures trading.

PYTH Oracle

PYTH, as the leading oracle on the Solana chain, provides fast and stable data updates, which are applicable not only to the Solana chain but also to other blockchains.

With the development of the Solana ecosystem, more and more DeFi products are continuously emerging, such as the recently launched prediction market B.E.T. These new products have lowered the barriers to use by optimizing user interface design, enhancing user education, and building community, attracting a large number of users. In the future, Solana's DeFi ecosystem is expected to become even more prosperous and diverse.