The Solana network has demonstrated remarkable performance this year, processing millions of transactions daily—more than many other blockchains combined. Its Total Value Locked (TVL) recently came within 10% of its peak during the 2021 bull market, signaling a strong recovery and growing interest.
This guide explores Solana’s current landscape, growth catalysts, and actionable strategies for earning yield and qualifying for airdrops within its DeFi ecosystem.
Why Is Solana Growing?
Several key factors are driving Solana’s expansion and adoption.
Meme Coin Culture
The surge in memecoin creation and trading has largely taken place on Solana. While speculative activity isn’t a direct technological advantage, it highlights several network strengths:
- Extremely fast transaction speeds.
- User-friendly experience for both crypto natives and newcomers.
- A growing narrative that Solana offers earning opportunities.
- Millions of small transactions have stress-tested the network, strengthening its reputation for reliability under heavy load.
Innovation and New Technology
During the bear market, Solana’s team focused on building. Recent innovations are now gaining significant traction:
- Solana Blinks: Allows blockchain transactions from any platform that supports URLs, potentially onboarding users outside the crypto space.
- DePIN Leadership: Solana hosts more decentralized physical infrastructure projects than Ethereum.
- ZK Compression: An upcoming upgrade that could further improve scalability.
Real-World Partnerships
Solana is forming meaningful partnerships with mainstream companies:
- Solana Pay enables low-fee, instant USDC transactions and integrates with Shopify.
- Visa expanded its stablecoin pilot to include Solana.
- Stripe’s fiat-to-crypto onboarding includes 11 Solana-based projects.
- A $60 million fund from Colosseum aims to accelerate Solana ecosystem development.
Future Developments
- Firedancer: An upcoming validator client upgrade aimed at improving network performance and decentralization.
- ETF Applications: VanEck has filed for a Solana ETF, with other institutions likely to follow.
- Continued Technical Improvements: Enhancements like ZK compression will further boost scalability.
The Solana Ecosystem Landscape
To navigate Solana DeFi, you’ll need a few essential tools.
Wallets
Phantom is the most popular Solana wallet. It supports Ledger integration and is available as a browser extension and mobile app.
On-Chain Navigation Tools
Jupiter is Solana’s largest DEX aggregator. Users can:
- Bridge assets to Solana.
- Swap tokens.
- Trade perpetual contracts.
- Provide liquidity for yield and potential airdrops.
- Participate in governance by holding JUP tokens.
Birdeye serves as a data dashboard for tracking trending tokens, analyzing holders, and monitoring portfolio performance.
Step Finance is a portfolio tracker that provides a detailed breakdown of holdings, yield positions, and NFTs.
Solana DeFi Strategies: Earning Yield and Qualifying for Airdrops
Here are some practical strategies to generate returns and position yourself for future airdrops.
Jito Network: Liquid Staking
Jito is a liquid staking platform that leverages MEV (Maximal Extractable Value) to offer additional yield on top of base staking rewards. Staking SOL with Jito can yield around 8% APY.
Simply click “Stake Now” to exchange SOL for JitoSOL. You can then use JitoSOL across DeFi applications while continuing to earn rewards. This is an excellent way to gain exposure to SOL’s upside while earning yield.
Jito’s previous airdrop was a major catalyst for the ecosystem, making it a protocol worth interacting with.
Jupiter and JLP Tokens
JLP (Jupiter Liquidity Provider) tokens represent a basket of assets and offer multiple yield opportunities. JLP is composed of:
- An index of SOL, ETH, WBTC, USDC, and USDT.
- The net profit/loss of perpetual traders on Jupiter.
- 75% of perpetual trading fees, distributed to JLP holders.
APY can range from 20% to over 100%, depending on market activity. You can acquire JLP tokens through Jupiter’s spot swap feature.
Holding JLP may also qualify you for future Jupiter airdrops, as the protocol has hinted at rewarding liquidity providers. 👉 Explore more strategies for maximizing yield
Providing Liquidity on AMMs
For those holding SOL, providing liquidity on Automated Market Makers (AMMs) like Raydium or Orca can yield high returns. The SOL/USDC pool often offers over 100% APY due to high trading volume.
Both protocols are well-established with substantial TVL. Orca is known for its user-friendly interface, while Raydium offers more advanced controls for liquidity providers.
Other Promising Protocols
Solayer is a restaking protocol on Solana. Currently invite-only, it allows users to restake liquid staking tokens (LSTs) for additional yield and potential airdrops. Tasks for eligibility include depositing into LST pools, participating in epochs, and inviting users.
NX Finance is a leverage and yield aggregation protocol. Though relatively new, it allows users to borrow against JLP tokens with up to 5x leverage. While high leverage carries liquidation risk, conservative borrowing can still yield significant returns.
Kamino Finance offers a “JLP Multiply” feature that automates leverage strategies with a single click. Users can multiply JLP exposure up to 3x or deposit USDC for triple-digit stablecoin yields.
Frequently Asked Questions
What is the best wallet for Solana DeFi?
Phantom is the most widely used Solana wallet. It supports Ledger, integrates with major dApps, and is available on mobile and desktop.
How do I qualify for airdrops on Solana?
Regular interaction with new and established protocols is key. Activities like staking, providing liquidity, and participating in governance can increase eligibility.
Is Solana safe for DeFi activities?
While no blockchain is without risk, Solana has undergone rigorous stress testing. Always use audited protocols, avoid excessive leverage, and never invest more than you can afford to lose.
What makes JLP tokens unique?
JLP tokens offer diversified exposure to major cryptocurrencies and earn yield from trading fees and perpetual market activity, making them a core component of many advanced strategies.
Can US-based users participate in Solana DeFi?
Most Solana DeFi protocols are accessible globally, but users should always comply with local regulations and ensure they are using compliant platforms.
How does liquid staking work?
Liquid staking allows you to stake tokens while retaining liquidity. You receive a derivative token (like JitoSOL) that can be used across DeFi while still earning staking rewards.
Conclusion
Despite being just four years old, Solana has matured impressively. While debates about network outages and validator centralization persist, it remains one of the most actively used blockchains.
With strong technical foundations, real-world partnerships, and a vibrant DeFi ecosystem, Solana is well-positioned for continued growth. Whether you’re seeking airdrops or high-yield opportunities, its ecosystem offers numerous ways to participate.