SOLADEFI: Solana DeFi Pool

SOLADEFI: Solana DeFi Pool

(Note: SOLDEFI will also be a sub-pool in the ALTL1DEFI Pool)

SOLADEFI Components and Weights
SOLADEFI Components and Weights
SOLADEFI Constituent Yield Strategies
SOLADEFI Constituent Yield Strategies
SOLADEFI Launch Planning
SOLADEFI Launch Planning

Solana Overview

Described as a ‘high-performance’ blockchain, Solana was created in 2017 by Anatoly Yakovenko to solve the throughput problems of both Bitcoin and Ethereum.

Unlike the previous two—which use a Proof-of-Work (Ethereum moving now to proof of Stake) consensus design relying on miners—Solana was based on a ‘Proof of History’ mechanism, one that creates historical records that prove that an event occurs during a specific moment in time.

This allows for a faster and more secure network. Solana’s transactions per second (tps) count is an estimated 65,000 (faster than the Visa network), and it is capable of supporting dApps, non-fungible tokens, and other blockchain applications atop its chain.

Solana isn’t natively compatible with the Ethereum Virtual Machine (EVM) as a way of attracting developers to the ecosystem. Rather, Solana allows on-chain logic to be written in the performant Rust programming language, while providing enough of an advantage to the developer experience that potential businesses will choose Solana as their go-to platform. Additionally, Rust is a widely used programming language beyond the blockchain space, which helps attract talent from areas such as traditional finance (TradFi).

While Solana doesn’t natively support an EVM development experience, Wormhole has been developed as a bridge between Solana, Ethereum, BSC & Terra. This bidirectional, decentralized bridge between the fungible ERC-20 standard which powers many DeFi projects and the SOL token is a promising way of porting over existing projects to benefit from Solana’s high speed and low cost.

Consensus System

The consensus system for Solana is built off two main innovations: Proof of History and Tower BFT. Proof of History is focused on the issue of “agreement on time.”

In a trustless situation like a blockchain, “nodes in the network can’t trust an external source of time or any timestamp that appears in a message.” Solana uses a different model and works on proving that a certain message occurred before and after other events. This system allows Solana to order messages without needing a timestamp. Proof of History is a Verifiable Delay Function where a sequential hash function’s states are recorded to represent the passage of time. A new message can refer to a specific recorded state to prove that it happened after that and can be added to the Sha256 loop to be hashed with the state to prove that it happened before the next recorded state.

Built on top of Proof of History, is a custom implementation of Practical Byzantine Fault Tolerance called Tower BFT. It works by having validators vote on a certain Proof of History ledger and guarantee that they will not vote for another contradicting ledger for N hashes which is a timeout.

Solana Research

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