Injective Yield Farming on Solana
INJ is now available on the Solana blockchain. Users can begin to earn a projected 20% APY on their wINJ using a newly released wINJ Covered Call Vault on the rapidly growing Solana DeFi protocol, Katana.
Injective is an interoperable blockchain built using the Cosmos SDK that seeks to bring together the multichain world through innovative applications. This also marks one of the first times that a Cosmos SDK based chain has transferred tokens to Solana.
What is Katana?
Katana describes itself as the premier protocol for yield generation on Solana.
At its core, Katana simplifies yield generation on Solana by identifying, composing, and packaging the best strategies in DeFi into accessible yield products.
How is the yield generated?
Katana has set up a wINJ covered call strategy on their platform.
The wINJ covered call vault accepts wINJ deposits and earns yield via an automated wINJ covered call strategy. The strategy works by first depositing the underlying wINJ on PsyOptions and minting out-of-the-money wINJ calls in return. The vault then sells these call options earning the option premium as initial yield. If the price of wINJ is below the strike price at the time of expiry, the vault earns the full value of the options it sold and can repeat the strategy, compounding its WINJ over time.
What else can I earn?
Katana will also be rewarding early depositors with early access Katana NFTs.
What are the risks?
The vault may underperform simply holding wINJ if the price of wINJ is above the strike price of the call options at the time of expiry. If so, the options are deemed to have expired in the money and can be exercised for the wINJ locked by the vault, although users will still up in USDC terms. Strike prices are chosen such that these events are rare.
What other projects are available on Katana?
Katana is currently quite exclusive to leading projects and has only integrated the likes of Solana, Terra, Bitcoin and Ethereum.
How do I get started?
You will have to have wINJ on Solana. You can easily use the Wormhole bridge in order to bridge over ERC20 INJ over to Solana.
After having wINJ, you will just have to interact with the wINJ Vault on Katana using a Solana native wallet such as Phantom wallet.
And that’s it! You can deploy wINJ into Katana to enjoy yields on Solana.
How does this benefit Injective?
Injective is a custom interoperable blockchain for building powerful DeFi, derivatives and Web3 applications. The INJ integration with Katana and Solana offers a new high yield staking option on Solana which currently is one of the fastest growing blockchain ecosystems.
In the future this would open up new avenues for DeFi experimentation as the Injective community may look to integrate Solana via a bridge.
Injective is a custom interoperable layer one protocol for building powerful DeFi, derivatives & Web3 applications. Injective is an application-specific chain built using the Cosmos SDK that is able to achieve instant transaction finality and lightning fast speeds. Users can build innovative applications on Injective such as exchanges via which users can access and create unlimited DeFi ecosystems. INJ is the native deflationary scarce asset that powers the Injective Protocol and the DApps built on top. Injective is incubated by Binance and is backed by Pantera Capital.