In the crypto space, opportunities are everywhere, they are visible if only investors notice their existence. Solana is one of these opportunities that many have missed. However, in the Solana ecosystem lies a project named Solfarm that aggregates liquidity from other Solana-based DEXs. Solfarm’s TVL has been sharply increasing for about 4 months to get nearly $1B.
The article below will provide all the detailed information about Solfarm, including:
- What is Solfarm? How does it work? All detailed information about TULIP Tokenomics.
- How to get and buy TULIP tokens?
- Roadmap & Details about the team, investors, and partners.
- Is Solfarm a good investment?
Let's explore the potential of Solfarm!
What is Solfarm?
Solfarm is a yield aggregator running on the Solana blockchain that offers customers auto-compounding vault strategies. Inheriting the advantages of the Solana blockchain, Solfarm helps users increase their profits with higher APYs without cumbersome management. Moreover, token holders can lend their tokens to gain interest, enabling the Leveraged Yield Farming feature of Solfarm.
Solfarm is one of the prize winners at Solana Hackathon 2021. There are notable features of Solfarm, including:
- Low cost/fees, high-speed transactions, frequently compounding strategies thanks to the Solana blockchain.
- Additional profits from high APYs.
- Supported vaults on Saber, Raydium, and Orca.
- Leveraged yield farming.
- Meme lovers, especially Pepe the frog.
How does Solfarm work?
Solfarm supports compounding vaults from Saber, Raydium, and Orca. Therefore, users can deposit their SPL tokens into the vault. Then the auto-compounding strategy will do the process to harvest the rewards.
Auto-compounding strategy is described in the following diagram. It requires users to deposit tokens into vaults then it will automatically operate the compounding process.
To prevent users from manipulating the strategy by hopping in and out constantly, they are required to keep deposited funds in the pool for at least 2 hours. If they withdraw the funds sooner, they will get a penalty from the platform.
Raydium and Saber Vault Fees
- Controller fee: 0.1%
- Platform Fee: 1.4%
- Vault Fees: 0.0%
- No deposit/withdrawal fees
Fees are extracted from the yields generated by the strategies and there are no additional deposit fees except for DEXs’ requirements.
Leveraged Yield Farming up to x3 is supported by the Solfarm platform. The feature consists of Lenders and Borrowers. The Lender deposits their assets to earn interest and the Borrower has to deposit collateral to leverage/borrow the yield farming.
When it comes to any leveraged product, users should be informed of all requirements and risks before participation.
- Liquidation will be executed if the loan to value ratio (LTV) is above 85%.
- Directional risk aka Impermanent Loss.
- Smart contracts of the platform and counterparties are exploited.
Users will receive tuAssets representing a proportional share of the lending pool and they are required to redeem the lent funds. However, besides the representative utility, tuAssets have no further application. The Solfarm team promises to update more in the future.
What is TULIP Token?
TULIP is the governance-oriented SPL token of Solfarm. The Solfarm team plans to build on-chain governance that democratizes the platform for the community.
Detailed information about TULIP Token
TULIP Key Metrics
- Token Name: Solfarm.
- Ticker: TULIP.
- Blockchain: Solana.
- Token Standard: SPL.
- Contract: TuLipcqtGVXP9XR62wM8WWCm6a9vhLs7T1uoWBk6FDs.
- Token Type: Governance.
- Max Supply: 10,000,000 TULIP.
- Circulating Supply: 1,371,058 TULIP.
TULIP Token Allocation
The TULIP Token has the total max supply of 10,000,000 tokens distributed as follows:
- Team: 20% - 2,000,000 TULIP.
- Advisors: 2% - 200,000 TULIP.
- Treasury: 12% - 1,200,000 TULIP.
- Liquidity Provision: 5% - 500,000 TULIP.
- Strategic & Growth: 12% - 1,200,000 TULIP.
- Liquidity Mining/Ecosystem: 48% - 4,800,000 TULIP.
TULIP Token Sale
TULIP Token Release Schedule
- Team: 20%; 6-month cliff; 3-year linear vesting.
- Advisors: 2%; 6-month cliff; 3-year linear vesting.
- Treasury: 12% is for protocol incentives.
- Liquidity Provision: 5% is reserved for AMM liquidity if necessary.
- Strategic & Growth: 12%.
- Liquidity Mining/Ecosystem: 48%.
TULIP Token Use Case
The Solfarm goal of TULIP tokens is to build on-chain governance for token holders. This allows them to vote on changes and additional improvements, including:
- Platform fees.
- Treasury usage.
- Pool reward weighting.
- Buyback and burn to enhance the value of TULIP.
How to get TULIP Token
You can get TULIP via liquidity mining programs or buy on exchanges such as FTX, Raydium, Serum DEX, etc.
How to buy TULIP tokens on Coin98 Exchange
You can buy TULIP Token on Coin98 Exchange by clicking the swap button at the bottom of this article and following these simple steps:
Step 1: Connect to the Coin98 Extension Wallet.
Step 2: Select the Coin98 Exchange Solana.
Step 3: Choose coins/tokens for trading:
- Search TULIP.
- If the result does not come up, you can paste the contract of TULIP into the search box: TuLipcqtGVXP9XR62wM8WWCm6a9vhLs7T1uoWBk6FDs;
Step 4: Adjust the amount you want to swap.
Step 5: Adjust the gas fee, then click Approve.
How to store TULIP Token
You can store, send, receive TULIP Tokens on Coin98 Wallet with a few single steps. The guides on how to make transactions with TULIP on Coin98 Wallet are as follows.
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search TULIP Token.
Step 3: Click on the correct result, copy the wallet address and send TULIP to this address.
Roadmap & Updates
- Add double asset reward Fusion pools.
- Saber Vault Release.
- Leveraged Farming Release (including interest reserves).
To-Dos (in no particular order)
- Optimizations to frontend to improve user experience.
- QoL fixes existing programs as needed.
- Work on v2 Solfarm.
- Review Solana on-chain governance protocol.
- Begin development token use case.
- Add the zap feature.
Team, Investors, and Partners
Solfarm has publicly formed a partnership with Solana Foundation. Solana Foundation is a non-profit organization located in Zug, Switzerland, supporting and contributing to many Solana-based projects.
Is Solfarm (TULIP) a good investment?
Solfarm solves the position management problem for users on other yield-generating platforms. It facilitates the farming process by offering a user-friendly interface and auto-compounding strategies. There are some key highlights from Coin98 for investment decisions.
The Solfarm roadmap depicts clear targets but with no date. This sometimes troubles users as they are not informed about what features/updates will be next. However, Solfarm has a supportive community since they share the same meme hobby - Pepe the frog.
In contrast to other Solana-based DeFi projects, Solfarm has no token sale to private investors or VCs. This demonstrates the ability of the Solfarm team since they are able to build a yield aggregator with no initial fundraising. Furthermore, they are so community-driven that all the TULIP tokens will be distributed to community members. As a result, the community can rely on the team as well as the future of the project.
Solfarm provides more token pairs for yield farmings than the yield aggregator project - Sunny Aggregator. Solfarm integrated three Solana-based DEXs: Saber, Raydium, and Orca whereas Sunny Aggregator integrated only with Saber. They are already big DeFi projects in the Solana ecosystem. Therefore, Solfarm’s $700M TVL is comparatively smaller than Sunny’s $3.6B TVL.
Auto-compounding strategies are the main features of Solfarm, generating additional income for investors. Furthermore, Solfarm provides a sharp sword - Leveraged Yield Farming for users.
Basically, you can leverage up to x3 their funds deposited for yield farming, resulting in thousands of leveraged APYs. However, don’t let the number deceive you, if you don’t know how to master the leveraging sword, it might stab you back with liquidation and Smart Contract exploits. Therefore, you should consider all potential risks before leveraging your yield farming.
The following picture compares the APR of the RAY-SOL LP pool on Raydium and Solfarm. You can see the difference between the two platforms. Solfarm is performing better since it generates more profits for farmers.
From my perspective, Solfarm is doing well in the yield aggregation sector. Will it be able to rapidly grow in the future as it isn’t backed by any big VCs?
And as usual, whether it is worth investing or not, Do Your Own Research before investing and be responsible for your investment.
Solfarm is one of the first yield aggregators in the Solana ecosystem, giving it a competitive advantage over other projects. Inside the ecosystem, Sunny Aggregator is the main opponent of Solfarm.
Solfarm is the pioneer of the Solana ecosystem that aggregates yield farming rewards from other DeFi protocols.
That is all you need to know about Solfarm and its TULIP token. I hope you’ve gained helpful insights to understand the potential behind Solfarm.
If you have any questions related to Solfarm, feel free to comment in the section down below!