Every chain that wants to fully utilize the tokens inside their ecosystem needs a borrowing and lending protocol. Ethereum has its MasterDAO. Which one can be the next big thing on Solana?
Enter Jet Protocol. It’s a decentralized and permissionless borrowing and lending protocol built on the Solana’s blockchain, that seem to be making all the right moves.
Why Building On Solana Matters
1) Transaction Speed
When it comes to Solana’s chain, speed is the name of the game. We’re looking at blockchain that can handle an incredible 50,000 transactions per second, with a new block being generated every 400 milliseconds. This speeds means that transactions cost less then a fraction of a dollar. Just look at this comparison with legacy chains like Ethereum.
For illustration ETH gas fees are $15. This makes Solana 60,000 cheaper.
Why transaction speed matters for lending protocols? Because information is power. And with higher speed you can get real time market data NOW. That might not be a big deal if the market is calm. But imagine a turbulent and volatile market. Then having the latest information at your finger tips empowers you flexibly adjust the collateralization ratio to protect the outstanding loans.
2) Solana Has Entered Meteoric Rise
As they say, rising tide lifts all boats. You want to be building your project on a chain that’s growing and has bright prospects into the future. With Solana we have seen their token rising from $44 on August 15th to $159 as of today. That’s 261% growth in the last 54 days. And we’re not even mentioning the growing number of projects on this chain with 423 active ones. In the case of Solana, rising tide looks more like an awesome surfing wave.
It Takes a Great Team To Makes Thing Work
When it comes to management Jet taps into a very experienced and battle tested founding team. For example they proved their skill while on board of the MarketDAO lending protocol, and protected it safely when everyone wanted to withdraw their money in the panic of March 12th 2020.
They also have extensive experience in governance. For example they successfully managed a heated community during network-crushing Crypto Kitties mayhem at MetaMask. So far the team raised a whopping 4.8 million dollars in the seed round from many successful venture firms and angel investors. You can see the whole list here.
To Achieve Success You Need To Solve Difficult Problems
Jet is tackling 2 huge problems that plague the cryptocurrency borrowing and lending business.
- Overcollaterization – This means you need to freeze up to 150% as a collateral for your loan. It can be a very rigid requirement that blocks a lot of capital. Jet Protocol with access to Solana’ speed is developing a technology that can change this collateralization ratio based on current market conditions. So capital can be used more productively.
- Loan Liquidation Systems – If they are not robust, they might break down in volatile markets and users lose their funds. Here Jet is using Solana’s sub-second blocktimes to allow for liquidating position by small pieces. This protects the integrity of the loan and safety of the funds users borrow.
How To Get Jet Token For Lowest Price
Cherry on the cake is that Jet Protocol is just about to launch. Their token will be available to trade on AscendEX from October 14th. But before this happens, AscendEX team has created a cool auction where you can get Jet for as little as $0.04. If this interest you just do this:
- Sign up using this link
- Check out the next steps how to increase your chances of winning here
Disclaimer
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