Solana is one of the hottest keywords in the crypto 2021 market. It’s now in the top 10 projects having the highest market capitalization. Many AMM DEXs built on Solana are attracting billions of liquidity value from other blockchain platforms and the real world.
Lending is a big part of any blockchain platform, also on Solana. Port Finance is a lending platform launched on the Solanium IDO platform in Aug 2021.
The article below will provide all the detailed information about Port Finance, including:
- What is Port Finance? How does it work?
- What is Port Finance Token (PORT)? All detailed information about its Tokenomics.
- How to get and buy PORT tokens?
- Roadmap and updates.
- Details about the team, investors, and partners.
- Is Port Finance a good investment?
Let’s find out the potential behind it together!
What is Port Finance?
Port Finance is a lending protocol built on Solana that offers various lending services such as variable/fixed rate lending and interest rate swaps. It is now running on Solana because of the scalability, high TPS, and extremely low TX fees of the Solana platform.
How does Port Finance work?
Like other existing lending platforms, Port Finance has several features as follows:
- Variable interest rate based on capital utilization: the utilization rate rises when the interest rate rises, and vice versa. This incentivizes users to deposit and borrow more.
- Flash loan product allows Port Finance users to do arbitrage among various Serum markets or between Serum and Raydium.
- Cross-collateral allows using simultaneously up to 9 crypto assets for 1 loan. This means users can deposit supported tokens to reduce the liquidation risk if they use the cross-collateral feature.
On Port Finance, collateral liquidation is triggered whenever the collateral ratio is too low below the minimum ratio of 115%. It uses Risk Factor to represent the overall liquidation risk for users’ convenience. Liquidation will occur if the Risk Factor is greater than 100%.
Liquidators - other users - cover the debt of other liquidated positions in order to take the liquidated collateral. This maintains the overall functionality of the protocol.
- Loan To Value (LTV): The ratio between the maximum borrow limit and the collateral value.
- Liquidation Threshold: The ratio between the borrowed amount and the collateral value. If the ratio is greater than the threshold, the collateral will be liquidated.
- Liquidation Bonus: The liquidator will get an extra bonus of collateral for buying the liquidated collateral.
- Optimal Utilization: The effectiveness of using deposited tokens for lending.
- Optimal Interest Rate and Highest Interest Rate.
Fix Rate Lending protocol is the next move of Port Finance, which aims to develop a fixed interest rate lending product integrated with Serum’s order book. Unlike the variable interest rate, the fixed one is more stable to manage the loan.
Interest Rate Swap protocol enables users to get the possible highest yield with fixed rates and floating rates by using the Serum matching engine. However, both Fix Rate Lending and Interest Rate Swap are yet to be released. So in the future, many are expecting those promising products according to the Port Finance plan.
What is PORT Token?
PORT is the Port Finance governance token that enables decentralized community governance and incentivizes its users. Via governance mechanism, it can decide to vote on changes of the protocol including the collateral ratio, new asset supports, liquidation threshold, and so on.
Detailed information about PORT Token
PORT Price Today
Currently, you can track PORT token Price on Coin98 Markets.
Coin98 Markets is a website that helps users to get updates of the real-time prices, as well as view the detailed information of a Token Metric from any project. More specifically, you can access the home page or the community page of a project or filter the coins/tokens by Market Cap, Trading Volume, etc.
PORT Key Metrics
- Token Name: Port Finance.
- Ticker: PORT.
- Blockchain: Solana.
- Token Standard: SPL.
- Contract: PoRTjZMPXb9T7dyU7tpLEZRQj7e6ssfAE62j2oQuc6y.
- Token Type: Utility and governance.
- Max Supply: 100,000,000 PORT.
- Circulating Supply: 2,165,000 PORT (self-reported).
PORT Token Allocation
The PORT Token has a total max supply of 100,000,000 tokens distributed as follows:
- Ecosystem: 33%
- Liquidity Incentives: 31%.
- Team: 20%
- Fundraising: 10%
- Initial Liquidity: 4%
- Advisors: 2%
PORT Token Sale
Port Finance had its token IDO on the Solanium platform:
- 0.4% (400,000) PORT tokens.
- Sale price: 0.40 USDC.
- ROI (ATH): 38.02x
Many big names such as CMT Digital, Ascendex, Solana Foundation, and ROK Capital participated in a closed Private Sale Investment Round of PORT tokens. This huge support gives Port Finance the ability to carry on product development to become a money market on Solana.
PORT Token Release Schedule
PORT Token Use Case
Port Finance issues PORT as its governance token, having functionalities as follows:
- Staking: Earn a portion of the fee on the platform by staking PORT. The Port Finance team plans to integrate this staking feature in the future.
- Fees: Borrowing fees and flash loan fee when the staking program is finished. 50% of the fee goes to buy and burn PORT tokens, the rest goes to the insurance fund.
- Governance: PORT holders can participate in voting on changes to the Port Finance protocol and parameters including the maximum loan to value ratio, new crypto asset support, liquidation threshold, etc. However, this governance feature has not been released yet.
How to get PORT Token
You can get PORT on various exchanges:
- CEXs: Gate.io, AscendEX, etc.
- DEXs on Solana: Raydium, Orca, etc.
How to buy PORT tokens
You can use Coin98 Exchange to swap other tokens for PORT following these simple steps: exchange.coin98.com
Step 1: Connect Coin98 Extension Wallet.
Step 2: Select Coin98 Exchange Solana.
Step 3: Choose coins/tokens for trading:
- Search PORT.
- If the result does not come up, you can paste the contract of PORT into the search box: PoRTjZMPXb9T7dyU7tpLEZRQj7e6ssfAE62j2oQuc6y;
Step 4: Adjust the amount you want to swap.
Step 5: Adjust the gas fee, then click Approve.
How to store PORT Token
You can store, send, receive PORT Tokens on Coin98 Wallet with a few single steps. The guides on how to make transactions with PORT on Coin98 Wallet are as follows.
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search PORT Token.
Step 3: Click on the correct result, copy the wallet address and send PORT to this address.
Roadmap & Updates
Plan to implement the following features:
- Protocol to protocol lending enables users to leverage their yield farming.
- Leverage trading on the Raydium platform with one click to take a long or short trade.
Team, Investors, and Partners
The Port Finance team includes engineers with technical expertise backgrounds from big tech companies, namely Google, Facebook, and Microsoft. Moreover, they contributed open-source code for Solana and Serum.
The team met each other in London while studying Computer Science at Imperial College, London. Therefore, 4 Co-Founders have solid technical backgrounds.
In Jul 2021, Port Finance raised $1,200,000 in the Seed Investment Round led by Jump Capital alongside Rarestone Capital GSR Markets, Valhalla Capital, and founders of Mercurial Finance, Raydium, Solanium, and DeFi Alliance. They are also strategic partners of Port Finance in order to contribute to long-term success.
Port Finance also collaborates with Serum’s order book exchange for more Ethereum-like products in the future. Besides the advantages of the Solana blockchain, projects built on it usually get supported by large investors, forming a solid network effect in the ecosystem.
Currently, Port Finance has formed profound partnerships with three other projects in the Solana ecosystem. Since Port Finance is a lending platform, it needs to diversify its lending products by accepting other types of tokens as collateral.
- Mercurial Finance (MER)
- Party Parrot (PAI, pSOL)
- Marinade (mSOL)
Is Port Finance (PORT) a good investment?
Currently, Port Finance has a team with technical experience and supportive backers who are going alongside on the journey to becoming a go-to money market in the DeFi world. There are some notable highlights from Coin98 for investment considerations:
- While other lending protocols use fixed parameters, Port Finance offers a more flexible solution to optimize the benefit of users. It uses Aave’s model for Interest Rate Curve depending on the volatility and the provided liquidity by lenders and depositors. Furthermore, the liquidation threshold also ranges from 111% to 105%. As a result, Port Finance is now trying to optimize its protocol for users’ stakes.
- Port Finance won the $10k Solana Hackathon Prize where there are over 13,000 participants and 350+ prominent projects around the world. This shows the support of the Solana community to the project and the team as well.
- Solana is surrounded by countless supportive investors and organizations and Port Finance also receives support from generous investors. This forms a solid network effect for all the projects in the ecosystem.
- The Lent Out (Capital Utilization) of Port Finance is about 57% compared to Compound with Capital Utilization of 40% and a far bigger TVL, which is very high for a lending protocol. This indicates that the demand for borrowing tokens is growing in the Solana ecosystem.
- The following graph shows that the cash flow is coming into other parts of Solana, not the lending part. This happens not only for Port Finance but also for all the lending platforms on Solana. With the high TPS and low Tx fees, DEXs are now dominating the share of TVL in the Solana ecosystem, resulting in the market share of Port Finance about $250M. It is expected that token holders will circulate their tokens in the ecosystem.
In my point of view, Port Finance finished the basic products of the lending platform, so it can keep users to stay and lend, borrow, as well as stake their SPL tokens. However, to be fast, it should release other lending products as soon as possible. And as usual, whether it is worth investing or not, Do Your Own Research before buying and be responsible for your investment.
Inside the new Solana ecosystem, there’s a race for lending protocols. They are trying to attract the liquidity flow from the DEXs on Solana, which is likely to happen.
Port Finance is a promising project with great ideas built on the Ethereum blockchain, so it also has numerous competitively large lending projects on other blockchains, namely:
- MakerDAO: The Maker protocol on the Ethereum blockchain issues DAI USD-pegged stablecoin enabling DeFi products such as trading and lending with over $6B in TVL.
- Liquity (LQTY): Lending protocol built on the Ethereum blockchain that aggregates liquidity by allowing others to build UI on top of its protocol.
- Venus: A decentralized marketplace built on BSC for connecting Lenders and Borrowers with stablecoins.