The cryptocurrency world witnessed a major milestone last year with the rise of decentralized finance (DeFi), primarily built on Ethereum. While the period from June 2020 (marked by COMP’s liquidity mining launch) to September 2020 (the infamous “Sushi dump”) was celebrated as “DeFi Summer,” Ethereum’s scalability issues became glaringly apparent in 2021. Low TPS and exorbitant gas fees made participation unsustainable for even veteran DeFi users, let alone newcomers. This article explores the Solana ecosystem (often called the “SBF Universe”) and provides a step-by-step guide to yield farming with RAY, currently one of the hottest projects in the space.
Disclaimer: This is not financial advice. Cryptocurrencies can experience 40% price swings within a day. Only invest what you can afford to lose, and always conduct your own research (DYOR). Start with small transactions to avoid technical errors.
Understanding Solana: The High-Performance Blockchain
Solana distinguishes itself through its innovative architecture:
– 7000 TPS and 0.4-second block times achieved via Proof of History (PoH) – a timestamping protocol developed by its engineer founder
– Unlike Bitcoin/ETH, Solana’s time synchronization enables unprecedented transaction speed and volume
– Operates as a consensus layer for transfers while smart contract execution occurs through SRM nodes before finalizing on-chain
👉 Discover how Solana compares to other blockchains
The SBF Universe: Key Components
The ecosystem built around FTX CEO Sam Bankman-Fried (SBF) includes:
| Project | Function | Significance |
|---|---|---|
| SRM | Serum DEX | Foundation of DeFi on Solana |
| FIDA | Frontend for SRM | Earns protocol-level fees from DEX operations |
| MAPS | Mapping app with Solana wallet | Potential gateway for mass adoption |
| OXY | Leverage/borrowing platform | Future backend for MAPS |
| RAY | Liquidity aggregator | Combines yield farming with staking rewards |
RAY Yield Farming Guide
Prerequisites
- Wallet Setup: Use Sollet (browser extension or web version)
- Store private keys securely
- Fund with at least 1 SOL for token activation fees
- ⚠️ Critical: Each token requires a unique wallet address
Liquidity Farming (150% APY)
- Deposit SRM/RAY into your wallet (FTX withdrawals recommended)
- Navigate to RAY’s FARM section
- Select SRM/RAY pair and provide liquidity
- Stake the received LP tokens to begin earning
- Monitor your harvestable rewards
Note: Understand Impermanent Loss before providing liquidity.
👉 Learn advanced yield farming strategies
Staking (120% APY)
- For simpler returns without IL, use the Stake option
- Deposit RAY tokens directly
- Track rewards through Sollet (may show delays due to Solana’s speed)
Pro Tips
- Use Step Finance to track all positions
- Refresh browser if RAY interface lags
- Frequent harvesting is cost-effective due to low fees
- 100 USD can generate meaningful returns on Solana
FAQ
Q: Why choose Solana over Ethereum for DeFi?
A: Solana offers 7000x faster transactions at 1/1000th the cost, making micro-transactions viable.
Q: Is Impermanent Loss avoidable?
A: While inherent to liquidity pools, single-asset staking (like RAY staking) eliminates IL risk.
Q: How secure is Sollet wallet?
A: While Ledger-compatible, always backup seed phrases as Solana’s address system is unforgiving.
Q: What makes RAY special?
A: It aggregates liquidity across Serum-based DEXs while offering dual farming/staking rewards.
Q: Can I participate with small capital?
A: Absolutely! Solana’s low fees make $100 positions practical.
Final Thoughts
The SBF Universe represents the next evolution of DeFi – combining institutional-grade infrastructure (Solana) with user-friendly applications. Whether through RAY farming or exploring other ecosystem projects like Oxygen or MAPS, Solana offers exciting opportunities beyond Ethereum’s limitations.