Bankless: Ethereum's native protocol is fleeing to Solana

Original title: “ETH’s Decentralized Finance Scene Eyes Solana”

Original author: Bankless

Original compilation: Rhythm Xiaogong, BlockBeats

Solana has cemented its position as a top-tier Blockchain after being reborn from the ashes of the FTX/Alameda collapse. In the community-led revival that followed, the sweat of the Solana native team drove the wheels of progress, but with the steady growth of SOL price and Decentralized Finance metrics within its ecosystem, non-Solana native protocol are also poised to seize this To The Moon opportunity.

The Solana native protocol paves the way

SOL’s surge from a low of $8 in December 2022 to $210 two months ago is one of the most compelling regression pump trends Crypto Assets this cycle, but wealth creation in the ecosystem is not limited to its native Token holders.

Developers in the Solana ecosystem continue to create sentiment highs for the market, and starting with the PYTH Airdrop in November, the Airdrop allocated Token on Solana to Address that interact with Pyth Oracle Machine on 27 networks, including Ethereum and its L2s, and marked a turning point, providing users from other ecosystems with direct financial incentives to support testing Solana.

Soon after, Solana native flow stake protocol Jito Labs conducted its own Airdrop rewarding those qualifying Wallet who earned more than 100 points by simply holding a jitoSOL deposit receipt and allocating at least five-figure Token. The dizzying allocations received by Jito users have turned Solana into a premier destination for Airdrop hunting and spurred mass adoption of points-based incentive systems through fledgling protocol within their own ecosystems, protocol which have proven to be highly successful in attracting users and their funds.

A gradually changing landscape

While native protocol laid the groundwork for the acceptance of mainstream Crypto Assets in Solana, Solana is increasingly becoming a “host” for Ethereum developers.

This transition may take place at a slow pace, but there is no doubt that the migration from Ethereum to Solana is bound to happen as more and more long projects begin to realize the abundance of on-chain activity within the Solana ecosystem and are eager to take advantage of this opportunity.

Decentralization computing shared network Render has long supported the Solana vision and chose to migrate its token migration to the SPL standard in November. And while MetaMask is often considered a laggard when it comes to improving the user experience, the project was one of the first Ethereum native apps to introduce Solana compatibility, launching “Snaps” last September, enabling users to select applications directly from MetaMask into the Solana ecosystem. To date, the Snaps integration of Solana’s native Wallet Solflare has attracted more than 500,000 users.

In addition, there are longest native lending markets on Solana, but none of them have the same level of time-tested security as Ethereum’s blue-chip lending goal Aave. To capitalize on its brand’s competitive advantage as a Solana, Aave DAO approved the January temperature check with an 83% pass rate, deploying its V3 quarantine coin the minimum viable version of the market through the Neon EVM, a fully compatible Ethereum development environment Solana Blockchain.

Last Wednesday, a community-led proposal emerged on the governance forum of GMX, the EVM ecosystem’s Perptual Futures trading platform, seeking to establish an independent exchanges deployment called GMSOL on Solana. GMSOL will exclusively utilize GMX Token for all value measurement and storage, while implementing a GMX buyback mechanism and allocating a significant portion of the fees back to the GMX Treasury to establish the GMSOL Vault.

In exchange for the dividends of this new Solana-native deployment, GMX DAO is expected to cover all costs associated with protocol audits and grant a license to copy and use its front-end code.

In addition to this, there is widespread speculation that two leader Ethereum projects, Ethena and Pendle, will be deployed to the Solana ecosystem in the near future, and these two projects have flourished in recent months thanks to the improved Intrerest Rate environment in the encryption market.

Long-term trend

Apps serve users, not Blockchain, and while long blue-chip protocol should have a high bar when considering new deployments, it would be foolish if they didn’t flock to the environment where users and activities exist. On networks that lack protocols, users will inevitably look for alternatives, putting market share dominance of existing applications at risk – especially if their chains start ceding their market share to competitors.

Ethereum and Solana take very different approaches to scaling, with the former opting for network sharding to make validators accessible to everyone, and the latter favoring a monolithic unified state. While greater decentralization at the validator level helps maintain the integrity of the Ethereum network, it certainly has some drawbacks that make Solana’s alternative vision extremely attractive in some ways.

Currently, the encryption industry is still experimental, which means we really don’t know what it will look like in 10 years, but just as investors can longing their portfolios prudently to drop risk, applications can longing their Blockchain deployments to maintain their market share.

Developers seeking maximum success must acknowledge that there is no necessary center for the future of finance, and that they should deploy their applications accordingly, whether it’s Ethereum, Solana, or even the Monad of EVM+SVM and the regulated settlement network operated by banks. encryption industry must cross a huge chasm of uncertainty to move from infancy to end-state, achieve true adoption, and bring trillions of dollars of traditional assets into on-chain.

Until then, app developers who blindly succumb to chain loyalty will lose money and market share at the table.

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