Psyoptions, a DeFi product suite based on Solana, just released their latest product on mainnet: Psylend. Psylend is a new over-collateralized lending primitive that is built on existing liquidity pools (LPs) to unlock additional liquidity on-chain.
Users can gain instant liquidity from their decentralized options vaults (DOVs) by now being able to borrow against them, as well as accessing leverage on existing positions and enabling the ability to hedge. Additionally, people can now lend assets, such as USDC and SOL, to those borrowing to generate low-risk yield.
The release creates a more capital-efficient market and allows for new arbitrage opportunities in the ecosystem. An example provided by the team was borrowing SOL at a lending rate of 2.99% and then staking the borrowed SOL on Jito to provide an 8.5% APY, which would net the user an APR of 5.5%.
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— PsyDAO (@PsyOptions) February 13, 2023
The launch of PsyLend marks a big step forward in increasing capital efficiency.
But why would anyone want to supply their vault tokens to a lending market and borrow $USDC or $SOL against them?
Here’s a simple arbitrage strategy that you can use with @jito_labs. 👇 https://t.co/BrWujfrGn3 pic.twitter.com/8F8e4IUEyG
The release adds new DeFi opportunities for users of PsyOptions as Solana DeFi makes a return after the FTX crisis, as after it Solana saw many protocols go under or disappear. PsyLend marks a new era for Solana DeFi, as users gain trust in the ecosystem with these new advanced and secure products.
illustrious
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