Repost the original title “Liquidity pledge new paradigm, understand the decentralized margin trading protocol Glow Finance | CryptoSeed”

Liquidity mining has always been a hot topic in the market, but most liquidity mining tokens are still in the stage of ‘yield packaging tools’, lacking composability and strategic flexibility. This leaves users with a choice: sacrifice asset liquidity for returns, or give up returns to participate in more complex DeFi strategies.

Glow Finance is trying to address this issue. Glow aims to help users improve the efficiency of capital utilization, flexibly manage risks, and execute complex strategies by integrating borrowing and trading functions.

What is Glow Finance?

Glow is a decentralized margin trading protocol that provides a full set of financial tools designed to maximize capital efficiency and broaden revenue opportunities. Its cross-margin account feature allows assets to interact dynamically, enabling users to manage, borrow, and operate positions within a unified framework.

Glow Finance’s core is a liquidity engine of ‘Margin Account + Modular Components’. Users can borrow, trade, and manage assets through non-custodial margin accounts, avoiding frequent platform switching. The account also supports sub-account functionality, similar to sub-account operations on centralized exchanges, facilitating advanced strategy deployment and risk isolation.

Glow Finance product matrix:

• Glow Margin Accounts: Cross-protocol, combinable leverage, releasing trading power.
• Glow Strategy Formula (Glow Recipes): Automated yield strategy to help users execute complex DeFi operations.
• $glowSOL: Supported by Solayer super validator, providing high-yield liquidity staking tokens (LRT) on Solana.

Team Background and Project Progress

Nicholas Roberts-Huntley, co-founder of Glow Finance, holds a Master’s degree in Evidence-Based Policy Evaluation and Economics from the University of Oxford. From 2013 to 2018, he worked as a doctor in the medical field, focusing on urological oncology surgery, emergency medicine, colorectal surgery, and other areas. After 2018, he transitioned into the venture capital field, serving as a Venture Architect at Virtual Ventures, then as Vice President at Point72, and finally founding Concrete in 2022.

Image Source: Nicholas Roberts-Huntley

Glow Finance originated from the lending platform Jet Protocol. In October 2024, Blueprint Finance acquired Jet and carried out a comprehensive restructuring, updating the technological architecture, and redefining the product positioning. It is reported that the Blueprint Finance team previously built the yield protocol Concrete in the Ethereum ecosystem. Concrete currently has accumulated a TVL of over $6.5 billion.

On April 14th, Glow Finance officially launched on the Solana mainnet, but the team’s vision does not stop at Solana. Nicholas Roberts-Huntley stated that Glow’s architecture has already prepared for future expansion to include new-generation on-chain ecosystems based on Solana Virtual Machine (SVM), such as Fogo and Atlas.

How Glow Finance works

Glow Finance provides a complementary set of DeFi tools built around margin accounts, pooled lending, and automated strategies.

Glow consolidates user assets into the margin account and connects them to the margin pool and external protocols through adapters, ensuring optimal capital efficiency for users when accessing various DeFi services.

Glow core architecture and functionality

The leveraged SOL re-staking strategy is the flagship strategy of Glow, designed to maximize returns and points from Glow and Solayer while avoiding the risk of exposure to SOL price fluctuations. The strategy involves creating a position with an optional leverage ratio using glowSOL and sSOL (Solayer’s liquidity staking tokens).

Users can obtain multiple times of SOL in an independent margin account for re-staking rewards, while earning double points for Solayer and Glow, and avoiding the price fluctuation risk of SOL. This position can also effectively isolate risks due to Glow’s independent margin account mechanism, avoiding liquidation due to SOL fluctuation.

Specific operation mode:

• The user creates a Glow margin account and enters the “Leverage glowSOL Re-Pledge” page;
• Under the guidance of the application interface, users can choose to deposit SOL from their wallet or existing margin account and invest it in a strategy;
• Users’ glowSOL holdings will continue to appreciate with the accumulation of staking rewards, thereby earning profits in a neutral position without price risk;
• glowSOL is also wrapped sSOL, which means that users can earn Glow points and Solayer points, and the number of points earned increases according to the selected leverage multiple;
• The user borrows SOL and holds glowSOL, so the position is essentially neutral to the price changes of SOL, avoiding the downside risk of price and enjoying the income from staking rewards. Unless the anchoring relationship between SOL and sSOL is broken, the user will not face liquidation risk.

(This article only introduces early projects and does not constitute investment advice.)

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