BluShark Media
4 min readOct 7, 2021

Oct. 7, 2021

Quick Points

  • SolFarm is a yield aggregator that is built on Solana using the auto compounding vault system.
  • This decentralized app is created to take advantage of the Solana system’s lower cost and higher efficiency.

There are more than 7000 cryptocurrencies in the world where uniqueness and potentiality keep some cryptocurrencies ahead, and Solana is one of them.

The idea of Solana is different from the traditional blockchain technology. It introduced a decentralized clock to the crypto blockchain, which is more efficient than anyone could have possibly imagined.

What is Solana?

Solana is a cryptocurrency blockchain that supports DeFi applications and smart contracts using the proof of stake consensus mechanism. As a result, it faces a low barrier that allows transactions to happen with maximum efficiency.

Solana can process 50K to 65K transactions per second compared to Ethereums 15 TPS and Bitcoin’s 7 TPS. Unlike Ethereum 2.0 or Polkadot, Solana is a single blockchain, and it does not need to delegate operations to other chains. The Solana team has built the blockchain with a long-term vision where people from Google, Microsoft, Apple, Qualcomm, and Dropbox are at the core of this project.

What is SolFarm?

SolFarm is a yield aggregator that is built on Solana using the auto compounding vault system. This decentralized app is created to take advantage of the Solana system’s lower cost and higher efficiency. The Solana blockchain will allow SolFarm to compound frequently in its vault strategy. As a result, stakers can benefit from the higher APY without requiring any active management.

SolFarm Vault

SolFarm Vault supports 47 tokens and 3 platforms where the liquidity details are shown as a list. As it is a DEX platform, users can connect their wallets and deposit money without any hassle.

SolFarm currently allows 13 wallets to deposit in the SolFarm vault. Moreover, users can filter tokens and platforms by clicking on the list or clicking on ‘all’ to see all tokens together.

How to Invest in SoLFarm?

First, investors should choose the vault they want to invest in. Usually, it is shown as a list that includes white balance, deposited among, Daily, and weekly APR.

As soon as you click on the specific LP, it will expand to input how much currency you want to deposit.

After that, if you click on the deposit, it will take you to the wallet extension to complete the payment.

SolFarm Fees

SolFarm does not take any fee on deposit or withdrawal, but there are two types of fees applicable on the reward only:

  • Controller Fee: 0.10%
  • Platform Fee: 1.4%

SolFarm Other Features

SolFarm lending is another feature where investors can lend cryptocurrencies and see the APY. This pool will continue until the utilization reaches 95%.

Lastly, leverage farming is another option for investment where users can increase the buying power by up to 3X of their investment.

Is SolFarm Risky?

In the DeFi space, innovation has a strong demand where the Solana system is very potential due to its super-fast speed. However, platforms like SolFarm include some risks that a user cannot ignore.

General DeFi Risks

Projects like SolFarm have unrelated risks like impairment loss, stolen private keys, and even loss of funds. Therefore investors should remain cautious about the risk and follow skepticism while injecting money.

Smart Contract Risks

Currently, SolFarm is in the beta mode where all codes in this protocol are experimental and novel. Therefore, investors should use discretion while depositing money here.

Final thought

In the DeFi sector, there are many ways to earn high and safe yields, but it is not a “get rich quick scheme,.” You can make huge money but follow slow, and consistent capital growth should be the primary target. Moreover, it is better to know the DeFi sector before investing money in any yield aggregator.

The content of this article, analysis, report, or webpage is not investment advice and does not constitute an offer or solicitation to offer or recommend any investment product. This content is for general purposes only and does not take into account your individual needs, investment objectives, and specific financial circumstances. The author may hold digital assets mention in this report

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