Trading Bitcoin Runes & Ordinals On Solana, Pendle Goes Live On Solana & More

Welcome back!

This is J264G and this week I’ve got these titbits for you:

• Pendle On Solana: Sandglass brings Pendle’s business model to Solana.

• Solana Integration: Solana tokens can now be traded via Coinbase Wallet.

• Visa Spending: Spend your crypto with a Spritz Visa card. 

Multiple teams are working on enabling a seamless liquidity transfer from Bitcoin — incl. Runes, Ordinals, and other standards — to Solana.

The second order effects?

Well ⬇️

While we wait for the thesis to play out, make sure to watch the Solana remake of The Big Short.

Click on any underlined heading/hyperlink to learn more.

Spotlight

Pendle on Solana

Let's talk about yield.

Pendle, one of the largest DeFi protocols on Ethereum, specialises in the tokenization and trading of yield, and currently has a TVL of $5.00B — slightly less than Uniswap at $5.76B. 

So the question is: if Pendle is so popular, why is there no Pendle on Solana?

Well, now there is!

Introducing: Sandglass

Similar to Pendle, Sandglass splits yield-bearing tokens into their principal and yield components and enables each to be traded separately.

The protocol was built by the team behind Lifinity, the first oracle-based spot DEX on Solana designed to improve capital efficiency and reduce impermanent loss. Lifinity is both highly profitable and well-funded, and has not needed to raise separate funds to develop Sandglass — mainly due to its veIDO that brought in $10M from the community. 

Going further, Sandglass enables three basic strategies:

1. If you're bearish on the yield, you can convert your yield exposure to more principal exposure, giving you a fixed APY.

2. If you're bullish on the yield, you can convert your principal exposure to more yield exposure, which gives you leveraged exposure to the yield but without any liquidation risk.

3. If you think the yield won't change much, you can passively provide liquidity and earn trading fees by depositing a single asset that would otherwise likely just be sitting idle in your wallet.

And there is already no shortage of assets whose yield can be traded — LSTs, LP tokens, deposit receipt tokens of lending protocols, tokens with staking yield, tokens with bribing yield, yield-bearing stablecoins, and more. 

Having said that, it will likely take a while for users to get educated and become comfortable expressing their views on and with yield.

However, the demand is certainly there, as many have been asking for a “Pendle on Solana” for a while now. 

It, therefore, only seems like a matter of time before a vibrant yield trading market is established on Solana.

 Time is trickling ⌛

Chart Of The Week

News Bites

Solana Integration: Coinbase is arguably one of the most important centralised exchanges. Naturally, everything the platform supports is most likely compliant and primed for mass adopted. Just recently, the CEX announced its Solana DEX integration, enabling users to trade Solana tokens with their Coinbase wallets. The significance of this cannot be overstated 😲

Visa Spending: Spritz enables users to purchase goods and services, as well as pay bills — from credit cards to utilities — with crypto. The Spritz Visa card can now be connected to your Solana wallet, meaning you can spend your on-chain assets everywhere. 

Restaking On Solana: Last week we explored EigenLayer i.e. restaking on Solana — incl. all things bonding and dual staking. If you missed it, catch up on the discussion here.

Stablecoin Utility: Sphere has partnered with Ondo, bringing USDY settlement and payments to merchants and customers. To learn more about USDY — a tokenized note secured by short-term US Treasuries — click here.

Transaction Fees: In the last couple of months, Solana has seen an unprecedented influx of users and liquidity. This has brought transaction fees back on the agenda. If you'd like to take a deep dive into all things gas fees, make sure to bookmark this Flipside dashboard. 

Validator Operations: You might have heard that running a validator on Solana can be rather lucrative. In this context, the Solana Foundation has recently revamped its delegation programme and added a way for developers to get onboarded right away, instead of waiting in lengthy queues.

Caught In 4K

Weekly Take

Keks & Giggles

And that's a wrap!

If you'd like to reach me, respond to this newsletter or reach out to me on 𝕏.

Talk soon!

J264G

_{DISCLAIMER
None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. Lastly, please be advised that we discuss products and services from our partners from which our team members may hold tokens/equity.}