Solend, a money market on the Solana blockchain, announced today that it will share proceeds from loan origination fees with the developers of applications that drive loans on the platform.
With over $600M in total value locked, Solend has become a formidable player in the new decentralized finance (DeFi) ecosystem on Solana. This new program could help it to grow even larger.
“Solend has lots of assets with deep liquidity now. With other primitives at similar levels of maturity (DEXes, name services, NFTs) developers can now build the next layer of DeFi, rivaling Ethereum,” Rooter, the founder of the protocol, told The Defiant.
For loans, Solend charges vault-dependent origination fees of a few basis points. Under this program, it will share 20% of those fees with developers (or protocols) that drive the adoption of Solend loans. “New protocols such as yield farming vaults, prize-linked savings accounts, and lending aggregators can all take advantage of this referral fee to be profitable from launch,” a draft announcement said.
More information can be found at Solend’s developer portal. The protocol is also offering grants of between 5,000 to 30,000 USDC to help developers get started.
Rooter called incentives for builders to build “developer mining.”
“In the same way that liquidity mining incentivizes providing liquidity, developer mining incentivizes developers. It’s a powerful way to incentivize behavior, which crypto is all about,” he said.