Save
Save (fka Solend) is a money market protocol native to Solana that allows anyone to borrow and lend crypto assets.
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- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Token: SLND
- Tags: Lending
- TVL: $349.5M (Rank #51)
- TVL Ranking by Lending: #13
- Blockchain: Solana, Eclipse
- Chain TVL
- Solana: $346.65M
- Eclipse: $2.81M
- Code reviewed by at least one experienced auditor; Kudelski audited in September 2021
- Anonymous team reduces transparency
- One mitigated protocol hack since launch
- Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
- Top 5% by total value locked reduces risk
- Core contracts can be upgraded with just an EOA wallet
- No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
- Moderate voting power concentration
- No death spiral concerns
- Solid controls to prevent oracle price manipulation
- Secured lending market that uses a combination of isolated and cross-collateral pools depending on the individual asset serves to reduce risk
- Solid controls in place to prevent risky borrowing
- Basic mechanisms in place to incentivize liquidations
- Basic method to accrue protocol reserves
- Solend is the largest decentralized lending protocol on Solana
How Save works
Save consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. Save borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, or commonly referred to as overcollateralization. Interest rates on Save are driven by market supply and demand. To facilitate this activity, Save issues cTokens to lenders that reflect accruing interest on the underlying token. Permissionless pools allows anyone to create an isolated pool on Save.
How Save makes money
Save collects protocol fees from several sources. First, the protocol collects revenue from the interest rate spread, which is a percentage of the borrow interest rate. The fee varies depending on the underlying asset. For permissionless pools, the interest spread would be 20%. Second, an origination fee is charged upon the origination of a loan. This fee is broken down into a program and host fee. The program fee contributes to Save's insurance fund. The host fee can be collected by any interface that refers loans to the protocol. The origination fee for most vaults is set to 10bps and there's an 80/20 split between protocol and host fee. Lastly, the protocol charges a liquidation insurance fee as a penalty on liquidations. The fee is currently 30% of the liqudation penalty. These funds go to the DAO treasury.
How you make money on Save
You earn lending fees on Save by depositing your idle crypto assets to be used by borrowers looking for leverage. Save also offers additional protocol incentives in its native SLND token to bootstrap demand.