This is my first “proposal” so plz bear with me.
As crypto begins to mature and composable projects enable interesting combinations of dapps to mesh together, revolutionary new financial products are bound to be unleashed into the skies.
As we all understand to varying degrees the promise of Solana relative to Ethereum 1 & 2, it isn’t a stretch of the imagination to consider that most if not all of the projects on Ethereum will eventually end up being developed on Solana.
With that being said, I have an idea that has yet to be considered until today: cloning Alchemix.
For those that don’t know, Alchemix (ALCX) is a borrow/lending protocol built on Ethereum that leverages Yearn Finance vaults in order to generate yield on deposited assets. Funds deposited on Alchemix can , but are not necessarily required to, be used as collateral for loans. ALCX then uses the yield generated from deposits, minus a small percentage that goes back to their treasury, in order to pay off whatever a user has borrowed. This creates a product where individuals, or even DAOs themselves, can take out self paying loans!
I believe that Jet Protocol can clone Alchemix and utilize several Solana DeFi projects in order to bring this incredible product to Solana. By utilizing collateral deposited to Jet and deploying those funds to other projects like Solfarm, Mango Markets, Raydium, Saber etc., Jet Protocol can create a type of loan, similar to ALCX that is self paying, but is much more capital efficient by leverage multiple sources of yield as opposed to just one.
Here’s what I’m thinking:
User deposits SOL into a Self Paying Loan Pool (SPLP) that is unique for each user’s account.
This pool gets automatically deposited into the highest yield for USDC (a program can created similar to SolFarm to automatically shift funds between different protocols in order to maximize interest).
Once deposited, user receives jSOL. This can either be HODLed for interest, or the user can swap for USDC (there can be a liquidity incentive program as well).
While the user is doing god knows what, the collateral’s generated interest is going towards paying off whatever % of the collateral is borrowed against.
Feel free to take this and make it your own, offer feedback, or just cringe at my smoothbrain. Just thinking out loud here