Michael Petch (Blade Protocol), Jack Lipstone (Rari Capital)
Rari Capital has been investigating the opportunity to expand cross-chain and offer permissionless lending on Solana. Achieving this would give Rari a first-mover advantage to capture new users and TVL while solidifying its brand across Ethereum and Solana with Rari-branded products.
Blade, an asset management protocol, is building vault strategies and structured products natively on Solana. Blade is additionally exploring the co-distribution of products through its robust architecture and helping Ethereum protocols launch products on Solana.
Building on Solana is difficult, partnering with Blade will give Rari a turnkey solution while both protocols provide their respective resources and share revenue.
The Blade Protocol has been under development for months, during which the Blade and Rari core contributors have had frequent chats discussing how Rari could launch products on Solana. Ultimately we would like to explore building permissionless lending (Fuse) on Solana as well as the opportunity to co-distribute Ethereum vaults on Solana and vice versa.
Building on Solana is difficult - the blockchain is not EVM compatible and to make things more complicated its native language is Rust. This means smart contracts on Ethereum need to be completely rewritten on Solana. Additionally, program development and architecture are completely different. Below is a list of some of the challenges Ethereum developers face when building on Solana.
- There is no easy path to converting Ethereum smart contracts to Solana programs and converting existing ERC-20 tokens, or ERC-721 NFTs, to Solana counterparts.
- Solana programs and transactions have different limitations and requirements and are stateless. Meaning, you cannot store data directly inside of a program.
- Solana programs (smart contracts) are stateless. Meaning, you cannot store data directly inside of a program.
- There are no compatible or existing frameworks or toolsets like Truffle, Ganache, Brownie, Infura, Etherscan, Remix, etc., and associated tools. (Note, there are up and coming tools and frameworks but they are still under development -e.g., Anchor as a framework is closest-, and there are some explorers making progress.
- Because the Solana blockchain is so different, existing toolsets, scripts, commands, cli, python tools, etc. would have to be reconfigured, rebuilt or migrated.
- Lack of available engineers and qualified talent. This is partially due to Solana being in an early adoption stage and Rust engineers are in short supply. Rust is an advanced language and transitioning from Ethereum Solidity is not easy.
Rari Capital has been solely focused on the Ethereum blockchain since its inception. Over the last several months, Rari has seen its product offering price out new users due to the surge in gas costs on Ethereum. During this time, Rari has also seen new opportunities from other chains and have been watching the evolving cross-chain DeFi space very closely.
I (Jack) have spent a lot of my free time researching Solana and communicating with developers, core team members, and blockchain advocates who have all secured my interest in building out Rari Capital on Solana.
Fuse itself is a fascinating protocol in the sense that it provides permissionless lending and borrowing to any user in the world. Solana has yet to see a product like this. I (Jack) am very excited for the potential opportunity to work with Blade to build out our products on Solana with vaults and permissionless lending being at the forefront, followed by structured products and DAO/governance bridges.
Blade and Rari form a task force to build permissionless lending on Solana and explore the co-distribution of each other's vaults on Ethereum and Solana.
Blade will be responsible for the technical build-out while leveraging Rari’s core team experience with building Fuse. Details around timing, fee split, marketing are to be determined once community feedback is received and the proposal is approved.
DO create a task force with Blade to explore permissionless lending on Solana and potential co-distribution.
DO NOT pursue building on Solana with Blade.