Welcome to Xenon Protocol
Enjooy leveraging your portfolio across the Solana Ecosystem
Solana currently is facing liquidity issues as liquidity in the ecosystem is very fragmented, with dozens of lending protocols popping up in the space. This fragmentation makes the capital in the space inefficient thereby affecting the growth of the ecosystem. This calls for a unification of the ecosystem, where the focus needs to shift from isolation to composability.
This is where Xenon Protocol comes in as the composable margin lending protocol which aims to free up liquidity in the ecosystem. Xenon is the first universal margin protocol built on Solana, allowing you to use leverage across DeFi protocols, all from a single margin account. All you need to do is deposit collateral into the account and you can borrow additional capital.
All this sounds cool, but what exactly can you do with the capital?
Xenon is designed to be composable in such a way that it allows you to trade on any DeFi protocol that integrates with it! Be it an AMM, a CLOB or any other lending protocol for that matter, all can be integrated with Xenon, and therefore be leveraged upon.
Upon doing a survey of existing margin protocols on Solana, we found that they either provide overcollateralized loans (deposit more, borrow less) or undercollateralized loans (deposit less, borrow more) but restrict the capital within the protocol itself.
Xenon is designed for composability and removes these capital restrictions, allowing the free flow of capital to the underlying protocols and ultimately the market.
There are two types of users who can benefit from Xenon. The Traders who wish to leverage their portfolio and the Lenders, who are generally risk-averse and looking for passive yields.
The Traders on one hand get to use leverage on their favourite DeFi protocols while simultaneously arbitraging the market for opportunities.
The Lenders on the other hand get an avenue where they can provide liquidity across DeFi protocols. A natural consequence of this is capital efficiency thereby leading to optimal and sustainable yields, irrespective of the market conditions.