Last week was suboptimal for the Solana ecosystem as its native token, SOL, hit a bearish trail and struggled to move past its resistance level. The token dropped by over 11% over the course of the week ending on May 9.
However, SOL made headlines last week with the launch of new protocols and investments on its platform, which is poised to help the ecosystem achieve its mission of scaling blockchain for global adoption. Notably, new and continuing developments continue to add value to the Solana ecosystem.
Here are some interesting updates from the Solana ecosystem this past week.
$3 Million Raised to Build NFT Platform on Solana
Burnt Banksy, the anonymous figure who burnt a piece of artwork from Bansky during a livestream, announced the launch of Burnt Finance, the first decentralized auction protocol on Solana. The reason why the Bansky work was burnt was to show that the value of the art could be transferred from the physical to a non-fungible token (NFT).
Excited to introduce @BurntFinance 🔥
— Burnt Finance (@BurntFinance) May 4, 2021
Burnt Finance was launched after Injective Protocol, Alameda Research, Multicoin Capital, and others raised $3 million to build the platform on the Solana ecosystem. According to the announcement, the new platform enables users to mint and trade any asset in a permissionless ecosystem. The platform supports auctions for synthetics, NFTs, digital assets, and much more.
Burnt Finance was incubated by Injective Protocol, who chose the Solana ecosystem for the new initiative due to its high transaction speeds and negligible fees. The platform can process 50,000 transactions per second with transaction fees of only $0.00005 for minting new assets or bidding. Such fast transaction times and low fees remove bidding manipulation and front-running while also allowing everyday people the ability to take part in NFT auctions.
The auction platform, launching later this year, would be fully decentralized and user-friendly. It would also offer users a wide range of auction options, such as bonding curves, Dutch, English, and more. Burnt Finance can be used by artists to sell their works while new projects can use it for fundraising.
Solana Secures $100 Million Investment
In a bid to enhance the growth and development of some projects in the Solana ecosystem, five major investment funds, totaling $100 million, have launched. According to reports, the funds were raised by the Huobi exchange, Gate Labs, NGC Ventures, MATH Global Foundation, and HashKey Group. The money will go toward projects developing on Solana within the Chinese region.
— Solana (@solana) May 7, 2021
A proper breakdown reveals that each platform invested $20 million. Funds from Huobi Global will be used to improve projects building infrastructure-related products within Solana. NGC Ventures’ money will go towards offering mentorships relating to company development, financial management, and hiring.
Meanwhile, Gate Labs’ $20 million will go towards projects that provide access to growth opportunities within new markets, with a particular focus on the Asia-Pacific region. MATH Global Foundation’s contribution will focus on global investments while HashKey Group’s money would be used to provide guidance and resources to those projects that are looking to access both retail and institutional markets.
First Privacy-Preserving Smart Contract Launch on Solana
The Solana ecosystem, which continues to attract thousands of new unique users, has announced the launch of Lava Cash, the first privacy-preserving smart contract on its ecosystem. The developers of Lava Cash believe privacy in the crypto space should be default, not to mention cheap, fast, and user-friendly as well.
— Lava Cash (Solana + Privacy) (@lava_cash) May 7, 2021
According to the announcement, Lava Cash is designed as a “non-custodial smart contract that utilizes zk-STARKs to break any deterministic links between funds that have entered the “Lava Pool” from those that have exited.” It was noted that the new solution was designed to be very easy to use while providing a clean and functional interface. Another point of note is that the main difference between Lava Cash and other privacy-preserving smart contracts is that the former utilizes zk-STARKs instead of zk-SNARKs. The use of zk-STARKs features several benefits, one of which is the use of publicly verifiable randomness.
SolFarm V1 Ready for Harvest
SolFarm, a first of its kind decentralized yield aggregator on the Solana ecosystem, announced its protocol is now open for harvest. The project is designed to help users maximize their profitability by holding their funds in its vaults and taking care of the farming for the users. Auto-compounding by the project will generate optimal yield within efficient time intervals between harvests.
SolFarm disclosed that its version1 vaults have launched and support Raydium LP token deposits for the following vaults: RAY-USDT, RAY-USDC, RAY-SRM, RAY-SOL, RAY-ETH, STEP-USDC, and MEDIA-USDC.
As of the time of publication, Solana (SOL) price was $41.94 with a 24-hour trading volume of $929,456,925. SOL price fell by 2.7% over the last 24 hours.
It has a circulating supply of 272.6 million SOL coins and a max supply of 488.6 million.
Also, it is worth noting that the token has grown by 7,479% in the last year alone.
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