Solana Treasury Firm DeFi Dev Corp Turns to Yield Farming to Boost SOL Reserves

Nasdaq-listed DeFi Dev Corp has announced that it will use some of the funds from its Solana treasury to invest in a yield-generating protocol. This is aimed at having it grow but not just sitting dormantly.

Solana Treasury Firm Moves On-chain

DeFi Development Corp. (DFDV) recently announced a partnership with Solana-native protocol Hylo. The partnership will see a share of the company’s Solana holdings being put into use through on-chain yield strategies, as opposed to being left unused.

It would also assist in boosting the accumulation of SOL and support the day-to-day running of operations for the company. It is an indication that public-listed companies are viewing the crypto treasury as an operational asset and not just an asset that is static in nature.

Hylo’s rapid growth appears to have been a key factor behind the decision. In just four months, the protocol expanded from zero to more than $100 million in total value locked. They also earned over $6 million in annualized fees on the Solana network.

Rather than letting its Solana treasury hold its funds idle, the company aims to allocate its carefully selected assets to strategies formulated to maximize returns for the ecosystem.

The revenue created through the on-chain yield will be used to support the company’s budget. The revenue would be used to increase its Solana holdings and assist with share repayments.

This move is also part of the company’s efforts to expand its reach. In October, the firm announced the launch of DFDV JP. This would be another Solana treasury in Japan. Notably, it was its second major launch in Asia after the initial debut of DFDV KR in South Korea.

The company said to these efforts as being part of their overall “Treasury Accelerator Program.”

Treasury Firms Increasingly Seek Yield

DeFi Development Corp is not alone in being proactive about managing digital assets. Within the sector, treasury-oriented companies are increasingly staking, lending, or investing their assets in DeFi to obtain gains.

An Ethereum-focused company called BitMine started staking its ETH at the end of December last year. It has now staked almost 780,000 tokens worth over $2.5 billion.

In addition to this, last September, Sharps Technology staked some of its Solana treasury in BonkSOL. Also, Coinbase is generating revenue from staking the balance of ETH and SOL held by the platform itself.

Bitcoin firms like Mara Holdings and Riot Platforms have also started borrowing funds using BTC as collateral. This does not affect their underlying assets.