How does Solend, the lending platform on Solana actually work?

The interesting part about Solend is that it was prototyped as part of the June 2021 Solana Season Hackathon, where the team won, encouraging them to step into the deFi world as a lending platform

How does Solend, the lending platform on Solana actually work?

Solend

Branded as the most affordable and easy to use platform on the Solana ecosystem, Solend has emerged at the top. The world of Web3 has given us a number of innovations which have powered the real world to a great extent. After Ethereum, which is the largest decentralized blockchain utilizing smart contracts, Solana has come across as the most exciting introduction with its high transaction speed and low cost. Owing to these features it has become a competitor of Ethereum, the reason many are drifting towards it. It has more than 400 projects present on its platform, which gives enough proof of its credibility. The latest to introduce itself around this space is Solend, which is a lending platform built on top of the Solana blockchain where interest rates are generated algorithmically. The interesting part about Solend is that it was prototyped as part of the June 2021 Solana Season Hackathon, where the team won, encouraging them to step into the deFi world as a lending platform.

There has been a rise in lending in the world of deFi as there is no central institution and anyone wanting to lend or borrow can easily do it. As the transactions are captured on the blockchain through smart contracts, there is no involvement of any third party. Furthermore, the transactions are transparent and don't require permissions from any authority, and above all the fees are relatively lesser which makes it all the more attractive. One can use their digital assets as collateral to get loans. These are the major reasons why platforms like Solend have entered the stream, giving its top-notch services to users.

Solend has emerged as the most preferred lending platform built on top of the Solana blockchain, where interest rates are generated algorithmically. Currently, Solend supports lending, borrowing and leveraging long & short. Users can deposit any supported asset on the platform. The lender earns interest based on annual percentage yield similar to traditional lending, and also gets additional rewards in the form of SLND tokens, which are the native tokens of Solend. Users can also borrow any one of the 11 assets from the platform. The platform also has an easy-to-use account panel which helps to keep a check on your transactions easily. Looking at the kind of response Solend has garnered since its inception, there's no doubt that it is bound to create differentiated long-term value for users of the platform.

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