Over the past months there have been many wonderful developments on the Solana blockchain. As huge supporters of the ecosystem and having been developing with the protocol for sometime, we believe that the ability to earn yield is a growth catalyst and something that is needed on Solana. With Acumen, we hope to bring seamless yield earning to the platform, fostering more growth and innovation on the Solana blockchain.
A major problem that plagues most DeFi protocols on the Ethereum blockchain are gas fees. Since Acumen is natively built on Solana, Acumen can attain the network’s sub-second finality and the average transaction fee of $0.0001, making the protocol faster and more efficient while at the same time saving money. Speed and cost is an essential component for lending protocols; if gas fees are too high it makes basic transactions unprofitable and ineffective. By leveraging Solana, we are able to remedy the problem that plagues most lending protocols on the Ethereum blockchain and make micro lending a profitable reality.
Acumen protocol also has other use cases. Individuals who are bullish on a specific asset can use the protocol to earn additional returns on their investment by supplying assets in the protocol. For example, if someone was bullish on SOL, they can lend out SOL and earn interest on it. Conversely, the Acumen protocol can also be used to short tokens. For example, if an individual believes that token X will depreciate, they can borrow asset X sell it for a stablecoin, and when asset X depreciates, buy it again, repay the loan and keep the difference.
Individuals can also benefit from the easy-to-use liquidation platform (covered more in-depth later on). In order to be a liquidator on most protocols, one must have an innate knowledge of smart contracts to code and launch their own bot. Acumen makes liquidation easier by allowing users to see all undercollateralized loans. From the liquidation tab, users can then choose which loans they want to liquidate. Essentially, buying their assets at a discounted rate, this will be discussed further in the documentation.