Save, originally launched as Solend, is an algorithmic, decentralized protocol designed for lending and borrowing on the Solana blockchain. By utilizing Solana’s high-speed and low-cost infrastructure, Save aims to provide efficient and accessible financial services within the decentralized finance (DeFi) ecosystem.
Protocol Overview
Save operates as a permissionless savings account on Solana, allowing users to deposit their assets and earn interest. The platform supports various functionalities including lending, borrowing, leveraging, and shorting assets. Its core features include:
- Lending and Borrowing: Users can supply assets to earn interest or borrow against their deposits.
- Leveraging and Shorting: Advanced financial strategies like leveraging long positions or shorting assets are supported.
Key Features
- Speed and Cost Efficiency: Save leverages Solana’s capabilities to offer transactions that are 100x faster and cheaper compared to traditional DeFi solutions.
- Permissionless Pools: These allow any user to create isolated pools, facilitating the listing of any SPL token as collateral, which democratizes access to financial services.
- DAO Governance: Save is governed by the Save DAO, where SLND token holders have voting rights on key protocol decisions and treasury management.
Tokenomics
The SLND token is integral to Save’s ecosystem, used for governance and as an incentive mechanism. Key aspects include:
- Community Allocation: 60% of SLND tokens are allocated to the community through liquidity mining programs and the DAO treasury.
- Governance: SLND holders govern the protocol through voting on proposals and managing the DAO’s assets.
Security and Risk Management
- Oracles: Save relies on oracles like Pyth and Switchboard for accurate price feeds, crucial for liquidation and health calculations.
- Liquidations: To maintain pool health, liquidations are performed when borrowers’ collateral value falls below a specified threshold.
User Experience
- Wallet Integration: Users need a Solana-compatible wallet, such as Phantom, to interact with Save.
- Deposits and Borrowing: The interface allows easy deposits, borrowing, and management of assets, with real-time account health indicators to prevent liquidations.
DAO and Governance
Save’s governance is managed by the DAO, with multiple wallets overseeing different aspects such as treasury operations and liquidity mining. This decentralized governance ensures that protocol changes and treasury management reflect the community’s interests.