An Exclusive Interview with Rooter, Founder of Solend: Solana Emerges as the Blockchain Promised Land
In June 2021, Solend emerged as the winner of the Solana Season hackathon, with a prototype of its lending protocol. Since then, the project has experienced rapid growth, officially launching on the Solana mainnet in August and accumulating over $100 million in user deposits and $40 million in borrowings.
Rooter, the anonymous developer leading the Solend team, discussed their progress since the hackathon. He highlighted the challenges and joys of building on Solana and shared his thoughts on the recent Solana downtime and technical difficulties.
The interview also delved into Solend’s operations, including oracle issues, token listings, and upcoming launches. Rooter addressed the pressing question of when the Solend token would be launched.
The birth of Solend came from the team’s observation of the blockchain ecosystem. They recognized that Ethereum had become more suited for whales and big companies, while Solana presented an opportunity to build a successful lending protocol for the average person. Despite competition in the market, Rooter believes Solend is performing well.
Building on Solana posed challenges for the team, as it was a relatively new blockchain. However, Rooter’s previous experience with Ethereum smart contract development allowed him to guide his team. The developer tooling ecosystem on Solana was not as developed as Ethereum, requiring them to build certain solutions themselves.
The best thing about building on Solana, according to Rooter, was the speed and efficiency of transactions. He compared it to the early days of Ethereum when transactions were fast and inexpensive. Rooter acknowledged that many people’s recent experience with Ethereum was of a slow and costly network.
Regarding the recent Solana downtime, Rooter expressed concern about the size of the network and the value locked in it. Fortunately, the market remained stable during the downtime, but precautions were taken by increasing the liquidation threshold for assets. Rooter hopes such incidents won’t happen again.
Solend relies on Pyth Network oracles for price feeds. Rooter mentioned that they are analyzing an incident where one user was affected by a flash crash in the BTC/USD feed. They are considering upgrading to time-weighted average price (TWAP) oracles and exploring other options such as Switchboard.xyz and Chainlink for additional security features.
As a lending protocol, Solend emphasizes the importance of an insurance fund to protect users in case of bugs or platform issues. Rooter highlighted the risks associated with listing assets and the need for careful scrutiny. Solend plans to leverage its token generation event and DAO treasury to build up an insurance fund of $10 million to $50 million.
The next steps on Solend’s roadmap include the launch of a token and liquidity mining program. They also aim to introduce permissionless and isolated lending pools to expand asset listings and lower risks. Solend is interested in listing Saber Protocol but requires sufficient trading volume and liquidity.
As for the Solend token launch, the team prioritized having a working product before the token generation event. It is expected to launch next month, and early adopters who have supplied or borrowed on Solend will be eligible for retroactive rewards. Solend’s liquidity program will differ from traditional models, addressing flaws and offering a unique approach.
In summary, Solend has experienced significant growth since winning the Solana Season hackathon. The team has navigated the challenges of building on Solana, addressed the recent downtime, and focused on improving their lending protocol. The upcoming launch of the Solend token and liquidity mining program, along with the development of isolated lending pools, demonstrate the project’s commitment to innovation and user-friendly solutions.
