#4. Friktion SOL vs mSOL Volts

    "Friktion offers an income generating covered call product to users. A covered call option involves holding a long position in a particular asset, for example, SOL, and writing a call option on that same asset with the goal of realizing additional income from the option premium. How much SOL was deposited during the February 4th and February 11th epochs and how many unique users were in the SOL covered call volt? How much mSOL was deposited during those same epochs and how many unique users were in the covered call volt? Why do you think one volt has been gaining more adoption than the other?

    Introducing Friktion

    Your DeFi portfolio manager, built to perform across market cycles.

    📈 Crypto asset management isn’t easy!

    Friktion introduces an Automated Portfolio Manager (APM) into the DeFi ecosystem, offering both active and passive strategies, known as Volts. The APM provides a set of profit opportunities for Users, finding ways to maximize returns while capturing volatility yield in various market environments. Starting with options and non-linear products, we aim to identify sustainable sources of yield and bring risk management into the ecosystem!

    ⚡ Volts are Solana’s first structured products

    Volts are Friktion’s native designed products. They allow anyone to invest and trade structured products with principal protection, yield generation, and volatility in mind.

    The first Volt strategies include Covered Calls, Protected Puts, Volatility Yield, and a custom Hedge for Impermanent Loss. Learn more here!

    Volts identify and capture the best options, futures, perpetuals, and spot pricing across on-chain exchanges (CLOB, AMM, OMM), market makers, and within the protocol.

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    Zoom In

    • As you can see, the popularity of SOL on Friktion platform is much higher than mSOL.
    • The average daily number of investors in both groups has remained almost constant and we do not see a sharp jump or decline.
    Let's do further analysis on Daily Investors

    The chart below shows the total number of unique users who have invested in each of these groups, with SOL being the most popular among users.

    Friktion Volt #1 : Generate Incomes

    Volt #01 focuses on income generation strategies, running automated covered call selling programs. Once deposited, funds are deployed into the current epoch and the Volt becomes your active portfolio manager. Your deposits are auto-compounded weekly. Option strikes and expires are algorithmically determined to maximize your returns and minimize the chance of an option being called or underlying asset assigned. Withdraws can be pre-set and claimed once the withdrawal window opens.

    Which Tokens Can Be Staked in Friktiion ?

    Friktion supports many tokens such as Luna,SOL,mSOL , BTC,SBR,TRR,RAY,... (above 100 tokens)

    let's analyze the SOL and mSOL usage. but what is mSOL?

    What IS mSOL?

    In stake proccess, we can exchange our Sol for mSOL, which is the staked version of SOL, and we will find it in our wallet when we exchange the SOL for the mSOL. The operation of MSOL is very similar to the Anchor protocol with UST and aUST. mSOL is a cryptocurrency that increases in value with respect to SOL without the need to have your cryptocurrencies locked in a platform. So, when a year has passed, you will be able to exchange your mSOL for SOL back and receive the same amount of SOL you indicated + the annual % APY given by the platform. Also, you can check after a few days or months, how the same amount of mSOL, will give you more SOL tokens each time, by increasing its value with the staking.

    Let's Draw Some Charts!

    The chart below shows the number of addresses that invest two SOL and mSOL tokens per day through Friktion

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    SOL/mSOL Daily Volume Invested

    The next analysis that we can do on the data is to examine the amount of investment made daily by users using the Friktion. Platform. The charts below is the result of grouping data by tokens per day.

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    Total Value Invested

    In the specified period, about $16,000 has been invested using SOL and $2,500 using mSOL.

    Whos The Winner ?

    As can be seen from the charts and data analysis of Solana tables, the SOL token is the undisputed winner both in terms of popularity among users and in terms of investment.