Every blockchain that wants to utilize its tokens inside its ecosystem fully needs a borrowing/lending protocol. Ethereum has MasterDAO. Which protocol can be the next big launch on Solana?
Enter Jet Protocol. It’s a decentralized and permissionless borrowing and lending protocol built on Solana’s blockchain that seems to be making all the right moves.
Two Reasons Why Jet Protocol Built On Solana
1) Transaction Speed
When it comes to Solana’s blockchain, speed is the name of the game. We’re looking at a blockchain that can handle 50,000 transactions per second, with a new block being generated every 400 milliseconds. This speed means that transactions cost less than a fraction of a dollar. Just look at this comparison with legacy chains like Ethereum.
Source: Solberg Invest
As you can see in the picture above, ETH gas fees can reach USD 15 or even much more. This makes Solana’s transactions 60,000 cheaper.
So, why does transaction speed matter for lending protocols? Because information is power. And with higher speed, you can get real-time market data. That might not be a big deal if the market is calm. But imagine a turbulent and volatile market. Then having the latest information at your fingertips empowers you to adjust the collateralization ratio flexibly to protect the outstanding loans.
2) The Solana Ecosystem Has Entered Meteoric Rise
As they say, a rising tide lifts all boats. You want to be building your project on a blockchain that is growing and has bright prospects into the future. With Solana, we have seen $SOL rising from USD 44 on August 15th to USD 159 as of today. That’s 261% growth in the last 54 days.
And we’re not even mentioning the growing number of projects on this blockchain with 423 active ones. In the case of Solana, the rising tide looks more like an awesome surfing wave. Here is a picture that summarizes how the Solana ecosystem has grown.
Backed by an Experienced Team
When it comes to management, the Jet Protocol taps into a very experienced and battle-tested founding team. For example, they proved their skill while onboard the MarketDAO lending protocol and protected it safely when everyone wanted to withdraw their money in the panic of March 12th, 2020.
They also have extensive experience in governance. For example, they successfully managed a heated community during network-crushing Crypto Kitties mayhem at MetaMask. On the other hand, according to the announcement, the Jet Protocol team raised a whopping USD 4.8 million in the seed round from many successful venture firms and angel investors.
Jet Protocol is Solving Two Huge Bottlenecks of the Crypto Ecosystem
The Jet Protocol is tackling two huge problems that plague the cryptocurrency borrowing and lending sector.
- Overcollaterization – This means you need to freeze up to 150% as collateral for your loan. This issue can be a very rigid requirement that blocks a lot of capital. However, Jet Protocol, with access to Solana’s speed, is developing a technology that can change this collateralization ratio based on current market conditions. Therefore, capital can be used more productively.
- Loan Liquidation Systems – If there is no robust Loan System, it might break down in volatile markets, and users could lose their funds. However, the Jet Protocol is using Solana’s sub-second block times to allow for liquidating position by small pieces. This protects the integrity of the loan and the safety of the funds users borrow.
Jet Protocol – AscendEX Partnership to Get $JET Tokens Cheaper.
The Jet Protocol has partnered with AscendEX to launch an IEO alliance to get Jet Protocol native token, $JET, inside the AscendEX platform from October 14th. AscendEX is a digital asset financial platform.
We're very happy to announce our IEO partnership for $JET with @AscendEX_Global! This go-to-market is available for non-US persons only – please read the details page for more information about participation. Thank you all for your support! https://t.co/Dv9H5dnQdb
— Jet Protocol (@JetProtocol) October 8, 2021
But before this happens, the AscendEX team has created a cool auction where you can get $JET for as little as USD 0.045. If this interest you, just do this:
Note: If you trade USD 5,000 on AscendEX with the above link before October 13th, you will receive 220 $JET tokens. Just leave 10 USDT in your wallet, and on October 14th and it will be automatically exchanged.
The information discussed by Altcoin Buzz is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinons relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided.
Do your own due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd. All rights reserved.