The Yield Layer of the Solana Decentralized Finance Ecosystem: The Innovative Path of NX Finance

Against the backdrop of the thriving Solana ecosystem, the DeFi sector has welcomed new opportunities. As the yield layer of the Solana DeFi ecosystem, NX Finance has emerged to optimize asset yield and risk redistribution. The platform offers users flexible investment options through innovative strategies to meet varying risk preferences and yield requirements.

The Rise of Solana Decentralized Finance Ecosystem

Recently, the amount of funds on the Solana chain has significantly increased, rising from $300 million in the third quarter of 2023 to $4 billion in July 2024. This growth trend has driven an increase in user demand for stable DeFi returns. Currently, DeFi returns on the Solana chain mainly come from two types of assets: LST (liquid staking tokens) and on-chain perpetual contract trading pools.

With the popularity of DeFi applications in the Solana ecosystem, multiple projects have begun to adopt point-based airdrops to incentivize user participation. However, different users have a demand for the separation of implied returns in the points based on their individual capital costs, expected returns, and risk preferences. This demand has given rise to a desire for a yield layer that can redistribute asset returns and risks.

Core Strategy of NX Finance

NX Finance has launched two main strategies for DeFi users on Solana:

1. Fulcrum Strategy: By leveraging interest-bearing asset returns, it provides users with returns that exceed simple holding. This strategy allows borrowers to collateralize interest-bearing assets, borrow stablecoins to purchase more assets, thereby achieving leveraged returns.

2. Gold Mining Strategy: Split the inherent returns of airdrop points. Users can choose to pledge assets to earn more points based on their risk preferences, or provide funds to obtain stable lending returns.

NX Finance's Contribution to the Solana Decentralized Finance Ecosystem

1. Seamless integration of yield-bearing assets: NX Finance allows users to adjust leverage ratios, enabling the reallocation of risks for a single asset. For example, the JLP leveraged farming strategy can provide JLP holders with leverage returns of up to 5 times, while maintaining a relatively stable risk level.

2. Risk redistribution of points airdrop: Through innovative airdrop strategies, NX Finance uses "points" as a medium to redistribute expected airdrop returns for users with different risk preferences. This approach not only provides options that match different risk preferences but also extends risk allocation to the time dimension.

Future Development Plan

NX Finance plans to expand its business scope in the third quarter:

1. Open more asset lending pools to provide users with diversified earning options.
2. Points Adventure Activity: The first phase of the airdrop season, which started on July 1, includes total locked volume points, referral system, and team gains.
3. Plan to conduct IDO at the end of the third quarter.

Conclusion

NX Finance, as a key component of the Solana Decentralized Finance ecosystem, is leading a new wave of innovation. By providing strategies that maximize returns while balancing risks, NX Finance is advancing the maturity of the Solana Decentralized Finance ecosystem. With its continuous expansion around yield leverage and point leverage strategies, NX Finance is expected to play an important role in the future development of Solana Decentralized Finance.