DefiTuna Leads Solana Yield Wars Over the Last 30 Days

Solana DeFi’s yield wars are heating up, with fierce competition erupting between the ecosystem’s leading protocols.

While maximum yield generation remains users’ number one priority, Solana DeFi is maturing. The ecosystem’s staggering variety of options caters to all different risk profiles, giving users a valuable and diversified toolset.

Which protocols are leading the race, and how are Solana DeFi apps giving users more diverse options?

Who’s Leading Yield Wars in Solana DeFi?

Solana’s onchain economy is full of opportunities. While the trenches are convinced that memecoins are the only way to make it, other network participants favor a slower, more reliable approach. 

Leveraging Solana’s powerful range of DeFi tools, asset lending has proven to be a consistent method of growing $SOL and stablecoin holdings, even in bearish market conditions.

According to RudeLabs data collected over the last 30 days, DefiTuna has consistently provided the highest $SOL lending rates, offering considerably higher rates than rival DeFi apps like Drift Protocol and Kamino. 

DefiTuna’s $SOL yield dominance is a solid win for the protocol, especially considering that the relatively young app is facing off against some of the network’s most established and trusted platforms.

However, it needs to be said that DefiTuna currently only supports native $SOL, meaning that DefiTuna’s network-leading APYs do not account for yield-baring assets like LSTs. 

While simple LST lending may not provide dramatically boosted yield, tools like Kamino Multiply can help push $SOL-based APYs as high as 22%.

Stablecoin Yield Matures, Diversifies

Stablecoins are the most in-demand asset for onchain borrowers. As such, Solana’s flourishing onchain markets offer a wealth of stablecoin lending apps, leading to fierce competition as apps battle to attract TVL.

Again, Rudelabs data suggests that DefiTuna exercises a commanding lead over $USDC lending APYs over the last 30 days, followed by DriftJLP and Carrot.. Beyond $USDC, DefiTuna’s $USDT rates (5.3% at press tiem) are also superior to rival platforms when compared to rates pulled from Lulo Finance, a popular yield aggregator.

Additionally, DefiTuna is yet to offer support for alternative stablecoins, like $PYUSD and $USDS, which occasionally enjoy higher lending rates than more popular coins like $USDC.

Stepping away from simple stablecoin lending, Drift Protocol’s Insurance Fund Vaults enjoy some of the highest rates for lenders who don’t mind locking their assets. Rewarding depositors with a portion of fees from perp trades, borrows, and liquidations, the Insurance Fund Vault is another high-performer for yield hunters.

 

Drift’s high APY comes with a slight hitch, however. Withdrawing funds from the vault is subject to a 13-day cooldown period, meaning depositors won’t be able to access their funds quickly.

While DefiTuna’s generous yield might be more attractive to a certain risk profile, Solana DeFi’s other stablecoin apps may have slightly different demographics. 

For example, Lulo’s optional protected deposits mean that users are insured against protocol failures. Sacrificing maximum yield, Lulo’s protected deposits give users greater secruty and peace of mind.

Meanwhile, Carrot’s innovative $CRT vault mechanism allocates accumulated yield directly to the token’s value. Under certain taxation mechanics, like jurisdictions with low capital gains tax, Carrot’s value accrual model could be more beneficial than simply chasing the highest APY.

What Are the Risks?

Solana DeFi boasts a wealth of creative and powerful applications empowering users to put their assets to work and earn generous yield. However, these protocols are by no means bulletproof.

Audited protocols can still be hacked and black swan events can have unexpected repercussions for asset lenders. 

Depositors are ultimately responsible for educating themeslves on the risks associated with their favorite apps, which could include network outage, smart contract vulnerabilities and third party risk.

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