In this blog post, we will discover how Nezha is explaining the DeFi ecosystem on Solana. Nezha’s stake to win dynamics brings novel payout mechanisms to the quickly growing Solana DeFi ecosystem.

Let’s dive into what makes Solana such a great ecosystem to be in in the first place, and how the Nezha protocol adds to this ecosystem!

What is Solana?

So, for those who may be new here, let’s briefly recap the unique features of Solana. Solana is a thriving third-generation layer-one blockchain, meaning it is smart-contract compatible and provides a fast, scalable, and decentralized platform, on which other applications can build.

Through its innovative “proof of history” proof of stake consensus mechanism, Solana eases the otherwise required communication, enabling the chain to generate blocks faster. The high transaction speed and affordability are two of the main factors making the Solana ecosystem attractive for both applications and users alike.

Why is Solana becoming so popular for DeFi protocols?

To answer the question for Solanas popularity for DeFi, we want to discuss two important factors: Solana’s liquidity abundance and infrastucture environment, and its engaged community. Solana is offering DeFi projects a highly functional environment to build on. Furthermore, Solana has a highly engaged and skilled developing community, which has provided the ecosystem with multiple innovative projects adding utility to its ecosystem.

While being rather young, the Solana DeFi space has seen lots of high-quality projects providing necessary infrastructure, making it more and more attractive to continue building. Solana has high-quality DEXs such as Serum, and market-makers such as Cropper.finance, Oracles such as Chainlink.io, access to bridges like Wormhole, launchpads, and multiple lending and borrowing protocols such as Francium.io.

As there are more high-quality projects than we can give a shoutout to here, the combination of the Solana Blockchain itself and the developed infrastructure of DeFi projects make it an attractive ecosystem to continue building.

Lastly, and most notably, the highly engaged community make Solana a thriving place in the cryptospace. Since the end of 2020, the cumulative number of user wallets has increased from a few thousand to 12 million, indicating a steep adoption. The community is benefiting from the low transaction costs, which has led to a thriving DeFi and NFT space, and lots of early projects to discover!

Why did Nezha choose Solana as their Blockchain?

In line with the previously introduced benefits of the Solana ecosystem, Nezha has decided that Solana is the most attractive place to build in. Our protocol and the community benefit from low transaction cost and high transaction speeds. 

While the Nezha team has initially considered building on Cardano, the DeFi infrastructure on Solana has proven to be a better match for our protocol’s aspirations. While Nezha plans to become multichain in the future, to tap into liquidity on other chains as well, Solana seems to be the place where we can best scale the Nezha protocol!

How will Nezha contribute to the Solana ecosystem?

Nezha adds a novel twist to the Solana DeFi space with our gamification element adding to yield aggregation. With the Nezha Draw, Nezha offers the unique opportunity to gain potential access to the interest generated on the liquidity of all protocol participants.

Through the attractive outlook of winning up to $100,000 USDC right after launch through our insurance agreement, Nezha is in the position to draw lots of new liquidity into the Solana ecosystem.

Furthermore, in the long run, Nezha plans to offer its technology as a white-labelling solution, providing other projects, such as from the booming GameFi sector, to integrate Nezha’s liquidity engine into their products.

So, on the one hand, Nezha is going to attract new liquidity to the Solana ecosystem, and on the other, Nezha will bring additional infrastructure to Solana, making the ecosystem even more attractive to build on!

Which Solana-based launchpads will Nezha launch through?

After the launch of our testnet and mainnet, we plan to issue our native token $NEZ, packed with utility for our Nezha ecosystem! We will have our IDO on Occam.Fi and Safelaunch.io. These are two multi-chain launchpads that will attract new members to the Solana community, and the Solana-native Cropper.finance, through their fertilizer launchpad.

Make sure not to miss any news about our IDO by joining our social channels. Keep up to date by following us on Twitter and Telegram, and join the growing community of Nezharians on Discord!

Conclusion

In total, we have learned that the Solana blockchain is an innovative, high-performance chain well-suited to our needs. Its community and DeFi ecosystem have seen exponential growth, and several high-quality projects are providing the necessary infrastructure on which we can build.

We are therefore excited to be able to soon bring our gamified yield aggregator with stake to win dynamics to Solana. By offering weekly Jackpots of up to $100,000 USDC, Nezha aims to attract great liquidity and contribute to the growth of this amazing ecosystem!