How to Optimize Your Crypto Lending Rewards on Solana

Learn about ways to find the best crypto lending rewards on Solana. This is the third edition of Hubble Protocol's crypto lending series.

Note: This article is not financial advice. Hubble Protocol does not endorse tokens or platforms mentioned in this article.

Key Takeaways

  • There are multiple tools online for discovering yield opportunities for lending.
  • Several Solana-based lending aggregators can help users optimize their positions.
  • This is a space that continues to develop in Solana DeFi.

Welcome to another edition of Hubble's series on Crypto Basics! This article will talk about how to find the best crypto lending rewards on Solana.

For users getting started lending in decentralized finance (DeFi), it's highly recommend reading previous articles in the series:

These articles for absolute beginners should give users a better understanding of crypto lending before they take part. Please note the mention of tools and yield aggregators in this article are not endorsements, and this is not financial advice.

Tools for Finding the Best Crypto Lending Rewards Simplify the Hunt

Users can check every DeFi lender on Solana for the best lending rewards, or they can use a tool that makes all this information searchable in one place. Nanoly (formerly Coindix) helps users search by blockchain, assets, and protocols for ways to lend tokens and at what current rewards.

Nanoly (formerly Coindix) helps users search for lending yield.

DeFi Llama also provides a similar dashboard for hunting lending yield. However, DeFiLlama reports many more statistics in DeFi than Nanoly, which focuses mainly on current yields, so users may have to play with the toggles on DeFi Llama to search every Solana lending platform.

Currently, if users choose only to see yields from lending on Solana, they will only find results from Solend. However, several other DeFi lending platforms on Solana, like the Tulip lending protocol, which specializes in multiple services, will be represented if more categories than lending are added to the search.

DeFiLlama provides another window into yields on Solana.

Lending Aggregators and Yield Aggregators Do Everything for Users

Users can chase yields by themselves, or they can rely on a yield aggregator to do most of the work for them. A lending aggregator uses strategies to find and acquire the most optimized yields from lending on Solana, whether they are currently located on Solend, Tulip Finance, or elsewhere.

Everlend Finance

Everlend Finance optimizes yields earned from lending by splitting deposits between protocols to maximize utilization and the possibility of earning yield. As shown in the screenshot below, deposited SRM is split between the Tulip protocol and Solend for lending at optimized rates.

Everlend Finance splits lending deposits between Solend and Tulip Protocol.

Everlend's whitepaper suggests the protocol will also move beyond the lend token side of operations to the borrowing side. According to Everlend Finance, "Everlend offers you the best yields on your deposits and the lowest rates on your borrows," and this offering will be made possible through a refinancing system.

Source: Everlend Finance's whitepaper.

Everlend Finance has been audited by Kudelski Security.

Mercurial Finance

Mercurial Finance, the decentralized exchange (DEX) specializing in swapping stable assets and correlated pairs, has begun offering a yield aggregator. According to Mercurial, it provides "DeFi's first dynamically optimized stable pools, powered by Mercurial vaults."

Mercurial Finance is a yield aggregator that optimizes yields on stablecoins and SOL.

While working with Mercurial Pools, Mercurial's Dynamic Vaults allocate funds to Solana lending platforms with the most optimized yield every few minutes. Currently, the assets accepted by Dynamic Vaults are stablecoins and SOL.

Mercurial Finance has been audited by Quantstamp and Halborn.

Goblin Gold

Goblin Gold currently offers optimized lending aggregator services. In the future, it will offer customized risk strategies to optimize yields from lending a wide range of Solana assets.

Goblin Gold is a lending aggregator that hunts down the best APY.

Goblin Gold currently accepts 13 assets for deposit. Strategies use Solend, Port Finance, Tulip Garden, Mango Markets, and Francium.

Goblin Gold has not been audited by a third-party security firm.

Optimizing Yields from Lending on Solana Gets Easier

Finding the best crypto lending rewards on Solana is becoming less difficult. As more protocols launch strategies to solve this pain point for users, borrowing and lending become even more optimized throughout the Solana lending ecosystem.

The Solana lending ecosystem continues to expand with more lending options as new assets enter money markets with the network's rising number of protocols with tokens. Users can take full advantage of these opportunities by researching or relying on lending aggregators to optimize their positions.

The growth of yield aggregators and lending aggregators on Solana is a testament to the development of the Solana DeFi sector. With Solana's incredible speeds and cost-effective transactions, this space has plenty of room for development as new users are onboarded to the network every day.

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