In the previous issues of my DeFi portfolio, I talked about Ethereum (ETH) and L2s, as well as other EVM (Ethereum Virtual Machine) compatible chains. This time, I will focus on the non-EVM blockchains. Examples of non-EVM blockchains supporting DeFi protocols include:
- Tron (TRX)
- Cardano (ADA)
- Solana (SOL)
- Tezos (XTZ)
- Osmosis (OSMO)
- Algorand (ALGO)
- Bitcoin (BTC)
- Near Protocol (NEAR)
You can find the complete list on Defillama by selecting "Non-EVM". The only non-EVM blockchain that I use for DeFi is Solana (SOL), despite the FUD...
Why did I choose Solana (SOL)?
Solana used to be a VC blockchain (like Aptos now...). SOL price initially pumped due to FTX and Alameda Research: now that both of them have crashed, it is not really a VC blockchain anymore... According to a tweet from Solana Compass on Nov. 26, 2022:
Alameda no longer holds the SOL, the liquidators do. The SOL on the chart is locked and cannot be sold, often for many years. Regardless, Chapter 11 means nothing can be sold until bankcruptcy completes, could take 10+ years.
Solana tokenomics are currently as follows:
Therefore, Alameda's locked stake accounts for 10.5% of total staked and the total staked is 83.3% of total supply, and hence Alameda's locked stake accounts for about 8.7% of total supply. As the liquidators could take 10+ years to sell these 8.7%, SOL price has much room to increase before it occurs.
Which DeFi protocols do I use on Solana?
The DeFi protocols that I like the most on Solana are:
- Hubble Finance, which is a CDP (Collateralized Debt Position, similar to MakerDAO or QiDAO) allowing to mint USDH (1:1 vs. USD);
- Solend, which is a lending protocol, with a special section called TURBO SOL which currently offers a LTV (Loan-To-Value) of 75%.
Although Hubble Finance offers good APY on stSOL (staked SOL) with LDO (Lido) rewards, I currently use Solend TURBO SOL since the interests are automatically compounded in SOL and there are additionally Solend (SLND) option rewards which can be claimed and exercised every month...
The current supply APR on SOL is 2.95%, which is rather low, since most traders are currently bullish on SOL. When traders are bearish (that happened when SOL had pumped after BONK launch), the APR increases because they borrow SOL to short it, what can then increase the APR up to 15-20%...
I will continue to use Solend on Solana chain, and also to borrow through this lending protocol USDC that I can use on Solana or other chains to trade... Therefore, my next posts will be about the decentralized exchanges (DEX) that you can use on different blockchains to trade.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
