Solend Season 2 Distributes Over $460k to Loyal Users, What’s Next for OG Lending Market?

Building off Solana’s surging DeFi activity, popular lending market Solend has announced the conclusion of its Season 2 rewards initiative. With the three-month-long incentives program drawing to a close, what does the future hold for Solend?

Long-Term Depositors Favored in 1.1M SLND Airdrop

Sensing ‘Points Fatigue’ from the wider Solana community, the Solend team made their intentions clear for Season 2 from the beginning. In place of the oft-maligned points system adopted by many Solana protocols, the Solend team promised clear and distinctive terms:

• 7 figure SLND rewards pools

• A 3-month program timeline

• A 2x rewards multiplier for long-term depositors 

With the rewards program officially ending at 13:00 UTC, the Solend team has announced that 1.1M SLND tokens, valued at over $460k, will be distributed to loyal Solend users. Reward claims will go live at 13:00 UTC, July 15, directly from the official Solend site. Users are encouraged not to click any alternative claim links.

Solend Season 2 By the Numbers

Solana’s burgeoning DeFi landscape is a competitive and militant arena, however, Solend’s strategy of rewarding long-term depositors seems to have played in their favor.

According to Dune Analytics data, the number of Solend users peaked directly after the announcement of the rewards program and tapered off following the cutoff date for multiplied rewards. Throughout the three-month program, Solend averaged 1,488 DAUs (Daily Active Users).

Meanwhile, TVL (Total Value Locked) stored in the protocol remained consistent throughout the incentive period. Over the course of Solend Season 2 TVL peaked at $310.7M, up 17.64% from its starting figure of $264.15M, based on DefiLlama data.

While this consistency suggests that Solend’s rewards program didn’t attract a dramatic surge of TVL, that’s not necessarily a bad thing. Incentives programs are a great way to attract TVL, but these funds often come from mercenary providers, diluting rewards for genuine supporters of the protocol. Onchain data suggests that airdrop farmers have largely avoided Solend Season 2, implying that genuine Solend users might be eligible for generous allocations.

What’s Next For Solend?

With Season 2 closing its doors, the question begs to be asked: Where to next for Solend?

All eyes now turn to an eagerly anticipated Season 3, which Solend hinted towards in their earlier 𝕏 post.

In an exclusive statement, a Solend representative told SolanaFloor:

“We have something huge coming up that we can't reveal right now. Season 3 will be an integral part of that. It will happen sooner than everyone thinks”

A long-term contributor to Solana, Solend has expressed interest and enthusiasm in collaborating further with other ecosystem applications. When asked if Season 3 will incorporate the wider Solana ecosystem, the popular lending protocol confided:

“Solend is built around decentralization and permissionlessness. We highly value partnerships with other projects and, yes, we intend to collaborate closely with other projects for Season 3.”

Regardless of what Solend has in store, the protocol’s long-standing reputation and durability suggest that it’s well-positioned to enjoy further adoption as Solana’s thriving Defi ecosystem continues to expand.

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