Guide to Yield Farming on Solana

We explore some of the yield farming platforms on Solana and where investors can provide liquidity for yield.

Guide to Yield Farming on Solana

Solana is a high-performance blockchain with rapid transaction speeds and a fast growing ecosystem in crypto, with thousands of projects spanning DeFi, NFTs, Web3 and more.

DefiLlama data currently tracking Solana puts the current TVL on DeFi platforms on Solana to be US$6.9B.

Solana TVL. Source: DefiLlama

In this article, we explore some of the yield farming platforms on Solana and where investors can provide liquidity for yield.

Raydium

Raydium is among the first Automated Market Makers (AMM) on Solana. Raydium is unique though, Raydium’s AMM interacts with Serum’s central limit order book, pools have access to all order flow and liquidity on Serum, and vice versa. Raydium Farms offer a large variety of yield farming opportunities on Solana given its high visibility and volume flow.

Yield farming opportunity:

Raydium pools are distributing RAY tokens as liquidity mining rewards. Emissions will last for approximately 36 months, with halvenings occurring every six months.

Saber

Saber is branded as a decentralized exchange with the StableSwap algorithm, designed to facilitate optimized swaps between pegged cryptocurrencies like USDC and USDT. It has also positioned itself to be a cross-chain AMM and liquidity network to bridge liquidity between Solana and other blockchains.

Yield farming opportunity:

Saber operates its liquidity mining yield farms on Quarry Protocol, where most pools offer SBR rewards and third-party liquidity mining rewards.

Orca

Orca prides itself as a user-centric decentralized exchange on Solana. It comes with a number of yield farms called Aquafarms with an opportunity to double dip project token rewards. With weekly rewards of 250K ORCA, yield farming on Solana with Orca has been juicy.

Yield farming opportunity:

Orca is offering ORCA rewards to its liquidity pools, some pools have the opportunity for double-dipping into rewards.

Solend

Solend is an algorithmic, decentralized protocol for lending and borrowing on Solana. With Solend, users can earn interest on their crypto assets, borrow, leverage long or go short on the market with an easy-to-use platform that can scale.

Yield farming opportunity:

Solend’s liquidity mining program offers SLND tokens distributed proportionally according to each market’s weight. Some markets have dual token rewards.

Tulip Protocol

Tulip Protocol is a yield aggregation platform built on Solana with auto-compounding vault strategies. They currently offer three types of yield products, including Vaults, Lending and Leveraged Farming.

Yield farming opportunity:

Tulip is a yield aggregator, and automatically helps to compound your yields from rewards into more underlying LP tokens.

Francium

Francium is a decentralised yield strategy aggregator built on Solana. It offers users the ability to leverage farm or invest in other exotic yield strategies, with the ability to automatically compound your underlying LP tokens.

Yield farming opportunity:

Similar to Tulip Protocol, Francium automatically compounds your LP tokens deposited on other protocols

Katana

Katana is a yield generation protocol on Solana designed to generate sustainable yield from automated option strategies.

Yield farming opportunity:

Katana option vaults make it easy to automatically compound your single assets with automated option writing strategies.

Friktion

Friktion is a crypto-asset portfolio management platform, built to perform across market cycles. Volts, Friktion’s native structured products, offer sustainable income generation and volatility yield strategies.

Yield farming opportunity:

Friktion Volts also allow users to automatically compound your single assets with automated option writing strategies.

Conclusion

The above are just selected yield farming opportunities on Solana. There are hundreds of protocols in the wild and more launching everyday with new, innovative mechanisms to push what's possible in DeFi.

Before depositing money in any of the protocols, always ensure that you've done your research and due diligence. Also read about the risks of yield farming.

Risks of yield farming
Many newbies fall into the trap of depositing into the highest return pools with APY rates that go into the hundreds or thousands. In this article, we evaluate the risks of yield farming in detail.

When you're ready, you can pick up your racks and start being a farmer.

Buy SOL on Binance or FTX and get discounts on trading fees.