Solana is an amazing blockchain platform that has supported a variety of DeFi projects since it was launched. Today, the Solana-based DeFi projects hold a massive $8.6 billion in total value locked (TVL). It shows just how Solana is becoming a go-to blockchain platform among DeFi projects, next only to Ethereum.
Thanks to its capability of processing up to 65,000 transactions per second and cheaper transaction cost, which is as low as $0.00025 per transaction, the interest in Solana-based DeFi projects is at an all-time high. Despite this, it is very difficult to single out the most promising Solana-based DeFi projects without putting in your valuable time to research the market extensively. Thus, we have prepared a list of new Solana-based DeFi projects that you must watch in 2022. Let’s dive into it now.
Nezha: A Game-Changing Prediction Market Protocol
What comes to your mind when you hear the word “prediction market”? Is it the high reward opportunities that prediction markets offer? Or, is it the losses that users might face in case their numbers do not match with the drawn number? For most people, the thought of losing their hard-earned money seems to be playing a dampener effect, turning away the masses from participating in the promising prediction markets. Nezha, a DeFi protocol built on Solana, is solving this issue once and for all.
Nezha’s reimagined prediction market, which is rightly called prediction market 2.0, has put in place a mechanism ensuring a user does not lose their principal amount. It’s because, in Nezha, users do not wager their principal amount. Instead, Nezha users wager the interest their funds earn while in Nezha’s liquidity pool.
As for how Nezha earns this interest, it does so by directing its entire user funds to high-yield generating external DeFi protocols, such as Solend, or Tulip. In return, Nezha receives a high yield daily from these external protocols, which is deposited to Nezha’s liquidity pools every week. But before directing the user funds to external protocols, the entire user funds are aggregated at one place by the liquidity engine of Nezha.
As Nezha depends on external DeFi protocols to earn a high yield, there is a risk of default. But Nezha’s experts manage it by hedging against the risks. So, you can rest assured that your funds are safe with Nezha, despite them directing your funds to external DeFi protocols.
In the initial draws, a user that enters a game will receive six numbers per entry, where the number of entries will depend on the amount you stake on Nezha. This mechanism will change in the coming days once Nezha starts seeing spikes in its userbase. With such an amazing concept and innovative technology, Nezha will change the prediction market for good.
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