WTF is Solrise Finance?

After the 2021 Solana x Serum virtual DeFi Hackathon was completed, 9 projects were chosen as winners. Solrise Finance was one of them.

Solana x Serum virtual DeFi Hackathon is usually an occurrence where hackers and developers create novel DeFi applications and infrastructure/ tools, to allow a positive impact on Decentralized Finance, scalability, low fees, and blazing speed. And, above all, integrating Serum or Solana in their projects.

Apart from Parrot and Synthetify, Solrise Finance was also chosen as the second-place winners. The hackathon was judged by the President of Solana Foundation, Anatoly Yakovenko, CEO of Circle, Jeremy Allaire, CEO of FTX, Sam Bankman-Fried, Chief Strategy Officer of CoinShares, Meltem Demirors, and many more. All the winners received $20,000 USDC each.

What Is Solrise Finance?

Solrise Finance is simply a decentralized trustless and non-custodial asset management and trading protocol. It usually allows investment protocol and fund management on Solana for two kinds of users. These include fund investors and asset/ fund managers.

The network’s decentralized asset management protocol can efficiently connect the world’s best asset managers and investment with investors on this Solana blockchain in a permissionless, trustless, and non-custodial fashion.

In simpler words, non-custodial asset or fund management describes a service in which assets or funds are never held by any third-party platform, at any moment during a transaction or duration of delivering service.

As opposed to custodial services that assume possession of a user’s assets or funds for management and safekeeping, non-custodial asset or fund management takes place via trustless smart contracts. These are computer protocols that enable the implementation of credible transactions on this blockchain, minus third parties. In most cases, non-custodial services are described as a real-world example of non-reliance on intermediaries, decentralization, and implementation of blockchain technology.

Based on a recent study performed by Grand View Research, the worldwide asset management market size is predicted to reach $1,292.17 B by 2027. Solrise Finance focuses on serving a percentage of this market with its futuristic non-custodial decentralized asset management protocol and, thus, allowing asset management to the blockchain.

Solrise Finance can enable fund managers to deposit and create investment funds, and even select assets to trade for the ideal fund performance. It also enables fund investors to invest, evaluate the performance of investment funds, as well as track their earnings. Solrise Finance can render its non-custodial, permissionless asset management services with only several button clicks, as opposed to conventional asset management processes.

What Makes Solrise Finance Exciting?

Solrise Finance is developed on the Solana blockchain, which is the fastest blockchain as of now.

Some of the common features of Solrise Finance are fast transactions, much affordable, real-time monitoring of managers’ performance, asset exchange & rebalancing mechanism, standardized SPL token infrastructure, price discovery oracles, wallet adapter, and multiple assets support.

These characteristics of Solrise Finance generally make it an excellent one-stop asset management protocol that allows you to invest your capital in a wide range of strategies while ensuring an immutable and transparent track record.

Typically, Solrise Finance enables a fund manager to set up a fund account and even deposit funds to that account. The asset/ fund manager needs to mint tokens that can represent a portfolio of assets that mostly includes the SOL, USDC, LINK, SRM, and SUSHI. This minted token allows asset/ fund managers to bypass the demand for manually rebalancing their portfolios.

Asset/ fund managers could adopt an asset management strategy effectively without needing to manually juggle each individual asset in their portfolio. These fund investors may explore public funds by their amount of investments, fund strategy, performance, and/or fund manager’s record, with the choice to invest into various funds without a minimum cap.

There are many risks involved when it comes to custodial services, such as BlockFi, Genesis Capital, and Bitfinex. These may include counterparty risk, complexity, a central point of failure, extended processing period, insolvency and illiquidity, downtime, confiscation by regulatory agencies, and censorship.

On the other hand, non-custodial services such as dYdX, Compound, and MakerDAO, are decentralized fast and censorship-resistant protocols with easy-to-use interfaces that cannot be confiscated and have no risk of downtime or insolvency.

Below are some of the benefits of Solrise Finance when it comes to asset management that makes it more exciting:

- Assets tailored to market demand. Assets might be made to satisfy certain investor requirements and better adapt to the changing demand.

- Increased secondary market opportunities. Heightened connectivity between digital assets and related networks brings more market opportunities and ultimately enhances the potential for liquidity.

- Lower risks for investors and wider market access. The reduced cost of issuance, global distribution, and fractionalized ownership ensure that affordable assets become accessible to bigger investor pools.

- Process efficiency and lowered costs. Smart contracts usually automate asset management processes such as reporting, transaction monitoring, payment settlement, KYC/AML, and compliance.

- Instant post-trade processing and settlement. Typically, blockchain activates instant change in the arrangement of transfer, records of ownership, and settlement of funds.

The Solrise Finance Protocol Token & Governance Model

The Solrise protocol enables anyone to set up an Investment Fund and even act as a Manager of that fund. Besides, the Investment Fund also holds a pool of assets that facilitate any SPL tokens that are available on the Solana blockchain. Although the protocol presently supports wrapped and native assets, they will soon be expanding this to incorporate more generalized asset classes.

They will attain this by onboarding price oracles - this was originally carried out by the team, but later via protocol governance. They are looking to generalize the definition of “assets” to incorporate everything that has a determined price, such as asset buckets, inverses, stocks, synthetic assets, and even other funds.

As of now, the protocol allows a single Manager key to carrying out trades with incorporated platforms for fund investors without the chance of exiting the funds. They also have plans of including a pluggable governance module. This enables fine-grained access control when it comes to investors along with constraints on the kind of whitelisted assets and protocols the fund is permitted to perform.