Fri. Dec 31st, 2021
    Tulip, Tulip.io, Solana, Tulip.garden

    High yields and the possibility of leveraged farming. Features of Tulip.io — Solana-based aggregator.

    What Solana is and how you can profit by using this blockchain?

    Solana is a next-generation Proof-of-Stake blockchain with an added feature called Proof-Of-History. A feature of Solana is that two timestamps are added to hashes. This allows to increase the size of blocks, since it allows “delayed” addition of transactions in the desired block, after verifying their timestamps.

    Blockchain launched in April 2019, but it is still in beta test. Its capitalization to date is $29.4 billion.During this time, many decentralized projects have been launched on Solana, including bridges, DeFi, and DEX.

    One of the leaders in DeFi on Solana is Tulip.Garden. Tulip Garden is a decentralized yield aggregator with auto-compounding vault strategies. The aggregator is designed to provide DEX liquidity, similar to Uniswap and Pancakeswap. That is, it helps investors choose the best interest rates from various platforms.

    Tulip aggregator features three DEX: ORCA, SABER, and RAY. There are 47 tokens available for farming.

    Promised pair yields range from just over 1 percent for the mSOL-SOL pair to over 1,000% APY for the SYP-USDC. The farming reward is accrued as an increase in a part of the total liquidity pool.

    But the main feature of Tulip.Garden is the possibility of leverage farming.

    Unlike regular farming, you can borrow funds for farming and get additional profits. But of course, do not forget about the interest for the use of borrowed funds.

    One of the main problems with DeFi lending is the lack of capital efficiency. For example, by depositing $10 in collateral, you can use $5 in funds, and if you decide to use those funds for farming, wouldn’t it be more efficient to deposit $10 cryptocurrency initially? That’s what investors use borrowed funds for.

    There are two key participants in leveraged farming: the lender and the farmer

    The lender looks for the most favorable conditions for him to invest his money in loan pools, and the farmer borrows these funds from these pools.

    It is especially important to pay attention to the liquidation factor. If you don’t have time to return your investment from the pool before the liquidation, you will only get back a part of it. In this case, the number of tokens returned depends on the particular pair.

    If you are new to this field, it is better to choose positions with headroom before liquidation.

    This aggregator also has its native TULIP governance token. Using which you can get additional profits from the aggregator. TULIP is currently priced at $14 and its market cap is $20.14M.

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    Tulip is the first Solana blockchain-based yield aggregator. Low network fees, plenty of pairs available, and the possibility of leveraged farming are at least noteworthy even when compared to other blockchains. And with the development of the entire ecosystem, its relevance may increase even more.

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