Solana Solend Phase One: Loan Agreement Launched and Updates Implemented

On April 11, it was reported that the loan agreement on Solana Solend had been launched in the first phase of SolendV2, and three new functions had been updated: loan weight, TWAP oracle machine and capital outflow rate limit. Among them, the new parameters of LTV and loan weight would take effect on April 17, and users need to update their open positions.

The loan agreement Solend has been launched in the first phase of the V2 version, with functions such as updating loan weights

On April 11th, it was reported that Solana Solend, a decentralized finance protocol built on the Solana blockchain, had launched the loan agreement in the first phase of SolendV2. This launch includes three new functions: loan weight, TWAP oracle machine, and capital outflow rate limit. In this article, we’ll explore each of these new functions and their impact on Solana Solend users.

Loan Weight: What is it and How Does it Impact Solend Users?

The first new function that Solana Solend has introduced is loan weight. This function allows borrowers to adjust the amount of collateral required to borrow funds based on the amount of outstanding loans they have. This ensures that borrowers with a higher loan-to-value (LTV) ratio have more collateral than those with a lower LTV ratio.
As a Solend user, this feature means that you can now adjust your loan weight to optimize your borrowing power. Additionally, loan weight helps to reduce the risk for lenders by ensuring that they have sufficient collateral to cover their loans.

TWAP Oracle Machine: Ensuring Fairness in Solend’s Price Oracle System

The second new feature introduced in SolendV2 is the TWAP (Time-Weighted Average Price) oracle machine. This feature ensures the fairness of Solend’s price oracle system by preventing market manipulation.
Previously, Solend’s price oracle system used a simple average of multiple price feeds. However, this made the system vulnerable to manipulation by malicious actors. With the implementation of the TWAP oracle machine, Solend users can be assured that the price feeds used in the protocol are fair and transparent.

Capital Outflow Rate Limit: Protecting Users From Volatility

The third and final new function introduced in SolendV2 is the capital outflow rate limit. This feature protects Solend users from market volatility by limiting the amount of capital that can flow out of the protocol in any given period.
The capital outflow rate limit ensures that users are protected in the event of a massive market crash, as it prevents the protocol from bleeding out its liquidity all at once. As a Solend user, this feature guarantees that you’re protected against sudden market shocks.

What Do These Updates Mean for Solend Users?

With the implementation of the new loan weight, TWAP oracle machine, and capital outflow rate limit features, Solana Solend users can take advantage of a more robust and secure protocol.
From a borrowing perspective, loan weight allows for more optimized borrowing power and improved lender protection. Meanwhile, the TWAP oracle machine ensures the fairness and transparency of price feeds, and the capital outflow rate limit protects users from market volatility.

Conclusion

Overall, Solana Solend’s updates to SolendV2 are undoubtedly positive for both borrowers and lenders on the platform. With three new features designed to optimize user experience and protect from potential market crashes, the protocol is now even more secure and reliable.

FAQs

1. What is Solana Solend?
Solana Solend is a decentralized finance protocol built on the Solana blockchain that allows users to lend and borrow funds.
2. What is SolendV2?
SolendV2 is the updated version of Solana Solend that includes new features such as loan weight, TWAP oracle machine, and capital outflow rate limit.
3. How does the capital outflow rate limit work?
The capital outflow rate limit is a feature that limits the amount of capital that can flow out of the protocol in any given period to protect users from market volatility.