Solidex Finance has attracted $2.18B of assets in just a few days since the project launched on the Fantom blockchain — that’s good for the 22th slot in all of DeFi as of Feb. 28 according to DeFi Llama, which tracks total value locked (TVL).
So what’s attracting the capital? Unsurprisingly, it’s the token rewards that users are raking in from the platform.
Solidex bills itself as “a protocol to optimize yield, voting power, and liquidity provisioning on Solidly,” according to the project’s documentation. In a nutshell, the project is built on top of Solidly, a decentralized exchange deployed on Fantom. Andre Cronje, who is the founder of Yearn Finance, is the project’s lead.
Both Solidly and Solidex have tokens which the protocols are issuing as rewards to users who deposit assets in their smart contracts. In the case of Solidly, which is even ahead of Solidex with $2.18B in TVL, users deposit assets into liquidity pools to facilitate token swaps. This is similar to any automated market maker (AMM).
In exchange for providing liquidity, users receive SOLID tokens, which they can lock up for veSOLID tokens. These grant holders a claim on Solidly trading fees as well as the opportunity to boost rewards through voting. If this sounds very familiar, it is — Curve Finance’s CRV token functions very similarly to SOLID.
In keeping with the parallels to Curve and its associated projects, Solidex functions in relation to Solidly like Convex Finance does to Curve — users are able to lock up their liquidity provider (LP) tokens representing their Solidly deposits and get rewarded in not only SOLID tokens, but Solidex’s SEX tokens as well.
The yields are more than solid— even for stablecoin-pairs, a safe option because neither token is volatile, users are able to generate a 19.3% APR with a Magic Internet Money (MIM) and USDC pool as of Feb. 28.
Users are also able to convert their SOLID tokens into SOLIDsex tokens, which they can then stake for 841% APR as of Feb. 28.
CryptoYieldInfo, a DeFi influencer, sees SOLID as having a brighter future than UNI, the token of crypto’s flagship DEX, Uniswap. Unlike UNI which distributed 40% of its token to the Uniswap team, advisors, and investors, 100% of SOLID tokens have gone to the public, according to CryptoYieldInfo.
Andre Cronje famously released 100% of Yearn’s YFI tokens to the public, in what may have been the fairest token distribution in history.
Of course, CryptoYieldInfo is already eyeing the next yield farming opportunity. “If you’re enjoying $SOLID, you can be earlier on a similar play on metis that can benefit from the test in prod of solid,” the influencer tweeted on Feb. 25. Metis is an Ethereum Layer 2 and CryptoYieldInfo is eyeing a token with the HERMES ticker, which looks to be the token for a new AMM.