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How to use Solend: A Step-by-step Guide

19/10/21
07:21
Beginner
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Solend an algorithmic, decentralized protocol for lending and borrowing on Solana. This article will guide you on how to use Solend with its features: supply, borrow, repay and withdraw.

Lending is expected to be the next DeFi stack that attracts the money flow in Solana after AMM and Yield Farming. According to DeFiLama, there are 2 lending projects (Party Parrot and Port Finance) that have been in the Top 10 protocols with the highest TVL on Solana. 

Besides them, Solend is another lending platform that is expected to have significant growth in the future. In this article, let’s go through all of the features that Solend offers and find out your own opportunity to leverage your position from that.

Solend overview

Solend is a decentralized protocol for lending and borrowing on Solana. Its vision is to become the most secure and easy-to-use lending platform in the Solana ecosystem. Besides that, Solend also takes advantage of the high scalability of its landed blockchain where any transaction is expected to be ultra-fast and dirt cheap.

Solend enables you to use your capital more efficiently by lending to earn interest, borrowing, leveraging long and short. With Solend, Solana users have more options to increase their profits. Some assets that are supported by Solend as of now are SOL, USDC, USDT, C98, BTC, SRM,….. More markets will be added soon. Eventually, the listing process will be governed by the Solend community.

Preparation for trading on Solend

Download and install the Coin98 Super App

Solend is now available on the Coin98 Super App for both iOS and Android users: 

Read the detailed instructions on how to use Coin98 Super App or watch the tutorial video to install the Coin98 Super App

Download and install the Coin98 Extension Wallet

You can access chrome.coin98.com to install the Coin98 Extension Wallet.

For instructions on installing and using the Coin98 Extension Wallet, you can refer here.

Create a Solana Wallet on the Coin98

Solend is a protocol of Solana, so you need a Solana wallet (SOL, SPL) to use this platform.

After installing the Coin98 Super App, you can refer to the guidelines below to create a Solana (SOL, SPL) wallet, or restore Solana wallets from other platforms to Coin98.

  • How to create a Multi-chain Wallet (recommended) here.
  • How to create a Solana (SOL, SPL) wallet here.
  • How to import Solana (SOL, SPL) wallet from Sollet wallet here.
  • How to import Solana (SOL, SPL) wallet from Phantom wallet here.

If you are already a Coin98 user, you can refresh or import multi-chain wallets to update your Solana wallet (SOL, SPL) as well as other new wallets available in this version!

On Solend, whether you’re using USDT, USDC, or SOL, you need to transfer them to your Solana wallet.

Preparing SOL as a gas fee

Solend uses SOL for gas fees. Therefore, to trade on Solend, you must have SOL in your wallets. Users can buy SOL on a centralized exchange such as FTX or Binance and send it to the Solana wallet address on Coin98.

So now that everything is ready, let’s start trading.

How to use Solend with the Coin98 Super App.

To access Solend, click Browser on the home screen and select Solend in the Solana section or enter “Solend” in the search bar, tap the Solend logo in the results.

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Connect your Solana Wallet with Solend

Step 1: At Solend’s main interface, please click Connect Wallet at the top right corner of the screen.

Step 2: Select Coin98 Wallet from the list. Your wallet is now connected with Solend.

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If you want to change your wallet, tap on the Wallet Name at the bottom right corner of the screen → Select the appropriate wallet/network.

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Lending

Step 1: First, choose a pool you want to supply by select All Pools. Choose the asset you want to Supply. In this article, I will take the C98 pool as an example. 

Step 2: Enter the amount you want to deposit in the Supply tab. Then carefully read the information below before deciding to trade:

  • Borrow limit: The maximum value of assets you can borrow.
  • Utilization: Represents how much of your borrow limit.
  • Supply APY: Interest rate per year from providing assets.

Step 3: Click Supply. The system will charge a very small network fee for this transaction, if you agree, click Approve. 

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After successfully providing assets to the pool, you can also withdraw at any time by clicking on the Assets supplied section, then enter the amount you want to withdraw, and click Withdraw.

Borrow on Solend

After providing the amount of C98, I will be able to borrow other tokens from the C98 pool. 

Step 1: Choose the asset you want to borrow. In this article, I will take C98 as an example.

Step 2: Enter the amount you want to borrow. Then carefully read the information below before deciding to trade:

  • Borrow limit: The maximum value of assets you can borrow.
  • Utilization: Represents how much of your borrow limit.
  • Borrow APY: The borrow interest rate you have to pay for the protocol.
  • Borrow fee: Borrow fee by this asset

Step 3: Click Borrow. The system will charge a very small network fee for this transaction, if you agree, click Approve. 

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Note: 

  • You can check your assets in the Dashboard → Show account section. Please always pay attention to the Borrow limit and the Liquidation threshold to avoid your loan being liquidated.
  • Liquidation threshold is the maximum value of your borrow balance before your account will be eligible for liquidation. This is a costly event and should be avoided by lowering your borrow utilization.
  • Borrow utilization represents how much of your borrow limit is currently being borrowed. At 100%, you are no longer able to borrow.
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Repay on Solend

To be able to withdraw assets from the pool, you need to repay your borrowing to make the Utilization rate low. 

Step 1: Choose the asset you want to repay. In this article, I will take C98 as an example.

Step 2: Enter the amount you want to repay and click Repay. The system will charge a very small network fee for this transaction, if you agree, click Approve. 

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Withdraw on the Solend

Step 1: Choose the asset you want to withdraw. In this article, I will take C98 as an example.

Step 2: Enter the amount you want to withdraw and click Withdraw. The system will charge a very small network fee for this transaction, if you agree, click Approve. 

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How to use Solend with the Coin98 Extension Wallet 

After connecting Solend with the Coin98 Extension Wallet, you can apply the same steps as with the Coin98 Super App above.

Connect the Coin98 Extension Wallet to Solend

Step 1: Go to the Solend website at: https://solend.fi/dashboard

Step 2: Choose Coin98 Wallet in the Connect Wallet section at the top right corner. 

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Note: You need to change the Web3 Priority of the Coin98 Extension Wallet to Solana blockchain before using this Dapp.

Select the Web3 Priority bar → select Solana.

Lending on Solend

Step 1: First, choose a pool you want to supply by select All Pools. Choose the asset you want to Supply. In this article, I will take C98 pool as an example. 

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Step 2: Enter the amount you want to deposit and click Supply. 

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The system will charge a very small network fee to this transaction, if you agree, click Sign. 

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Borrow on Solend

Step 1: Choose the asset you want to borrow. In this case, I will take C98 as an example.

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Step 2: Enter the amount you want to borrow and click Borrow. 

The system will charge a very small fee, if you agree, click Sign.

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FAQ about Solend

How much should I borrow to avoid liquidation?

Solend has published an optimal utilization rate for all assets. But on average, the recommended borrow utilization (borrow balance/ borrow limit) is 80%. Solend has the Your Account section right at the interface so that you can frequently manage your position and avoid liquidation.

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How much do I have to repay after borrowing?

You can check the borrow APY of each asset at the Dashboard on Solend.

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How can I manage all of my positions?

Solend has the Your account section helping you track all of your positions easily. Some key information you can find here is total assets supplied, total assets borrowed, how much you have borrowed, and your risk of being liquidated. 

Summary

Congratulations, now you know all the steps of how to use different features on Solend. Hopefully, you have found this article helpful to start the basic steps and explore other features on Solend yourself.

If you have any questions, please feel free to comment below or join Coin98 Community for further discussion.

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