Add support for binance pegged SOL to Venus core pool on BNB chain

[Omar.bnb]

Add support for binance pegged SOL to Venus core pool on BNB chain

Summary

After a recent surge in Solana price and network usage, SOL on BNB Chain saw a significant raise in on chain liquidity and volume, making it an ideal asset to list on our core pool, with a lot of potential and use cases, listing SOL can bring significant revenue to Venus, as it’ll be the only EVM lending protocol for lending and borrowing Solana.

Background

Overview of the Solana Network

Solana is a blockchain platform designed to host decentralized, scalable applications. Founded in 2017, it is an open-source project currently run by the Solana Foundation based in Geneva, while the blockchain was built by San Francisco-based Solana Labs.

The network saw a significant growth in 2024, reaching over 60 Million active users in November 2024 according to TheBlock on-chain data.

About SOL

Due to the surge in usage and demand, the liquidity of wrapped Solana has seen a significant boost in on-chain liquidity, reaching over $5M on BNB chain, moreover, the daily trading volume at the time of writing is just over $5 billion.

Liquidity

Solana is available for trading on all major CEXs, and it has vast liquidity on Pancakeswap V3 and few other DEXs on BNB Chain

PCS V3 WBNB Pair: 0x1E4600929Edf7F36B4A7eAc4C7571057D82a246c

PCS V3 USDT Pair: 0x9F5a0AD81Fe7fD5dFb84EE7A0CFb83967359BD90

Baby Swap USDT Pair: 0xAe08C9D357731FD8d25681dE753551BE14C00405

Baby Swap WBNB Pair: 0x8abd16bCC9077A6C5eD834eC5bA43Ad03b9139dc

Biswap WBNB Pair : 0x3530F7d8D55c93D778e17cbd30bf9eB07b884f35

Motivation & Benefits

The venus community has asked and requested the listing of SOL for multiple times, In addition, the proposal also aims to increase the protocol usage by attracting Solana ecosystem users, which could result in noticeable revenue boost within the core pools.

Reasons for borrowing SOL from venus could be:

• Staking SOL to help validating the network to achieve higher APY than the Borrow APY.

• Using SOL to buy into different IDO’s without the need to convert assets into SOL.

• Using SOL for trading without the need to convert assets.

• Using Sol to participate in Bybit launchpools

Specifications

Token Address: 0x570A5D26f7765Ecb712C0924E4De545B89fD43dF

Liquidity on Dex: Over $5M

Market Cap: $120 billion

Oracle: Chainlink SOL / USD Price Feed | Chainlink

Sources

Token address: https://bscscan.com/address/0x570A5D26f7765Ecb712C0924E4De545B89fD43dF

Liquidity:

Cryptocurrency Prices, Charts And Market Capitalizations | CoinMarketCap

Market Cap: https://coinmarketcap.com/currencies/solana/

Trading Volume: https://coinmarketcap.com/currencies/solana/

[Danny]

Absolutely! 100% with you on that one and adding to the priority list.

[JucoPablo]

How come we took so long in something like this? Where do I sign, please go ahead… approve 10000000%

[Xvs_Believer]

Fully agree on this

We should also take into consideration Ondo and it’s yield stablecoin like usdy

Let’s push this one and keep add market which could bring real interest

100% supportive on this one , let’s make it on snapshot and process in vip fast

[ZeroSumGame]

SOL is eating all the other chains lunch and to have wrapped SOL on Venus must surely be a priority.

[Frayst]

Time to deploy it !

[Tomm]

BIG YES!! We need to list SOL on BSC core pool.

[chaoslabs]

Overview

Chaos Labs supports listing SOL on Venus Protocol’s BNB Core Pool. Below is our analysis and recommendations for initial risk parameters.

Market & Ecosystem

The Solana ecosystem experienced significant growth in 2024, starting the year with a TVL of less than $1B and reaching a peak of $9B by year-end. From January 10, 2025, the Solana ecosystem saw further expansion, with its TVL rising from $8.5B to a peak of $12B, demonstrating an overall upward trend.

The current total supply of SOL on BNB stands at 1.1M, translating to an on-chain market cap of $249M, distributed among 316K holders.

Below, we present the total supply of SOL over time. For the past three months, the supply remained stable at 800K, with a significant increase in the last two weeks, reaching the current level of 1.1M.

Currently, 34% of SOL is held by two top holders: Binance Hot Wallet 20 and Binance Hot Wallet 6. On January 25, 2025, a large mint of 300K SOL occurred from a wallet under Binance’s control, which was subsequently moved to Binance Hot Wallet 20.

Transfers of SOL on BNB have increased significantly over the past three months. In November and December 2024, transaction volume surged, with the daily average exceeding 10,000 transfers.

SOL Token Contract Overview

Liquidity

SOL’s DEX liquidity on BNB is primarily sourced from PCS V3 and Thena Fusion. On Thena Fusion, the SOL/BNB pool currently holds approximately $1.4M in total TVL. On PCS V3, there are six main pools providing SOL liquidity, with the SOL/WBNB pool ranking first, holding a total TVL of $2.1M. The second-largest pool is the USDT/SOL pool, with a total TVL of $987K.

Below, we present the combined liquidity over time. The data shows some fluctuations in buy liquidity, but a strong uptrend is maintained.

Volatility

SOL is moderately volatile, with a daily annualized volatility of 88.03% and a 30-day daily annualized volatility of 100.25%. Its maximum price drop in the past 90-days timeframe was 8.4%.

Collateral Factor

The Solana ecosystem showed a consistent upward trend throughout 2024. Likewise, SOL’s supply and transfer volume on BNB have exhibited steady growth. While SOL’s DEX liquidity on BNB has experienced some fluctuations and remains relatively small compared to its total supply, the current liquidity of around $5M is sufficient for us to recommend listing SOL in the BNB Core Pool.

Based on the above reasons, a higher set of parameters could be justified. However, considering SOL’s current volatility, we recommend setting its CF at 72%.

Interest Rate Curve

Given the limited use cases for volatile assets beyond staking, we recommend setting SOL’s Kink at 50% and aligning its IR with other volatile assets in the pool. We also recommend a Reserve Factor of 20%.

Supply and Borrow Caps

We recommend setting the supply cap at 2x the liquidity available under the Liquidation Incentive. Using this methodology, we recommend an initial supply cap of 18K SOL and setting the borrow cap at 50% of the supply cap.

Oracle Configuration/Pricing

We recommend using the Chainlink SOL/USD Oracle when pricing SOL.

Specification

Asset	SOL
Chain	BNB Chain
Pool	Core
Collateral Factor	72%
Liquidation Penalty	10%
Supply Cap	18,000
Borrow Cap	9,000
Kink	50%
Base	0.02
Multiplier	0.2
Jump Multiplier	3.0
Reserve Factor	20%

Disclaimer

Chaos Labs has not been compensated by any third party for publishing this recommendation.

Copyright

Copyright and related rights waived via CC0

[Omar.bnb]

Can we not have the kink at 50% and reserver factor at 25% before we build proper liquidity for the asset? I listed more than 3 use-cases for Sol, these parameters will not attract suppliers just like what happened with TWT, kindly reconsider the kink to be set at 65% and reserve factor to 10%, this can be changed once the liquidity and supply on venus improves with time.

Also in your specification you mention 20% reserve factor, so do you recommend 20% or 25% lol

[chaoslabs]

Thank you, @Omar.bnb, for your question. However, we find that your proposed reasons for being more lenient with SOL’s borrowing parameters are likely to increase the risk for the protocol. It is critical to remember that this is a bridged version of the asset, thus carrying unique considerations, as described in our analysis. The asset’s liquidity is far worse than the native SOL on Solana. Regarding your proposed borrowing use cases:

• Staking: given that there are numerous native borrow/lend protocols on Solana, it is unlikely that users would borrow the bridged version on BNB, bridge back, and then stake. Additionally, this activity would make BNB SOL’s liquidity worse, potentially increasing risks for Venus.
• Using SOL for IDOs: this is a legitimate use case, however, our parameters are designed to facilitate this activity. It is critical that Venus maintain a buffer given that SOL is likely to be used heavily as a collateral asset; in the event that SOL’s price falls while borrowed SOL is locked in an IDO, utilization would rapidly increase, potentially causing bad debt. It is prudent to observe market dynamics before allowing increased borrowing of the asset.
• Using SOL for trading: While it is unclear what this refers to, our proposed parameters do allow for SOL borrowing. We prefer to list the asset with conservative parameters that can be adjusted following observation.
• Using SOL to participate in Bybit launchpools: this is the same consideration as using SOL for IDOs.

Regarding the Reserve Factor, it is unlikely that supply yield will be a determining factor in whether a user deposits on Venus given the already established competition on Solana; a user will deposit SOL on Venus because they are using it as collateral in the BNB Chain ecosystem. The additional risks associated with this asset require a higher Reserve Factor, set to 20% as per our specification table. We will continue to evaluate this market after listing and, if necessary, will propose changes that balance efficiency and risk mitigation.

[Tomm]

Very detailed explanation, let us watch and adjust in time.

[Masala]

100% Agree! We list SOL at BSC core pool now