FTX Fallout to DeFi Leader: SwissBorg CEO&Founder Cyrus Fazel on Solana’s Comeback

Solana has entered 2024 with renewed momentum. After the FTX collapse in late 2022, the blockchain faced doubts due to its close ties with the exchange and Alameda Research. However, instead of fading away, Solana proved its resilience, becoming a go-to platform for fast, low-cost decentralized applications. 

To understand Solana’s comeback, BeInCrypto sat down with Cyrus Fazel, co-founder and CEO of SwissBorg, a leading crypto wealth management platform. Fazel, once a skeptic of Solana, now champions its integration into SwissBorg’s operations and its role in the future of decentralized finance (DeFi).

Skepticism and Early Impressions of Solana

Fazel was upfront about his initial doubts about Solana. In the early 2020s, the blockchain was closely tied to FTX and Alameda Research, two entities that caused unease. “When I saw that Alameda held 10% of Solana’s supply, I thought, this isn’t going to end well,” Fazel said. Token concentration was a major concern, and he feared the inevitable dumping of assets would hurt the network’s long-term potential.

His initial reaction wasn’t just technical but also personal. “To be honest, part of it was jealousy,” Fazel admitted. “FTX was dominating the market in 2021, and their aggressive promotion of Solana made it hard to see past the hype.” 

However, Fazel’s team at SwissBorg saw Solana differently. Engineers on his team were captivated by its technical capabilities, often working on it during hackathons or side projects. “The team saw potential in Solana long before I did,” he added.

The turning point came when SwissBorg’s Chief Technology Officer (CTO), Nicolas Rémond,  presented a detailed analysis of Solana’s infrastructure. “He explained that Solana was the only chain with DEX-supporting CLOBs system (centralized limit order books). When I saw the numbers, I couldn’t argue anymore — it was clear they were light-years ahead,” Fazel said. This realization marked the start of SwissBorg’s journey with Solana.

The collapse of FTX in late 2022 put Solana in a precarious position. The blockchain’s reputation was heavily tied to the exchange, and its token price dropped dramatically. Critics were quick to predict Solana’s demise. Fazel admitted that he shared these doubts initially. “At the time, I thought Solana wouldn’t make it. It was hard to see how they could bounce back from something this damaging,” he recalled.

What happened next, however, surprised many, including Fazel. Instead of crumbling, Solana’s developers and community doubled down on building. “They didn’t let the collapse define them. They kept innovating, holding hackathons, and releasing new tools. That kind of resilience is rare in crypto,” Fazel shared.

Fazel credited much of Solana’s recovery to the leadership of the Solana Foundation. “Lily, their president, was instrumental. She focused on the long-term vision instead of getting caught up in token prices or public opinion,” he explained. The foundation’s ability to maintain focus and support its developers ensured that Solana could weather the storm. “Most projects would have folded under that kind of pressure, but Solana proved they were here to stay,” Fazel said.

For SwissBorg, Solana’s ability to recover from such a major setback validated the blockchain’s strength. “It showed me that Solana wasn’t just another project — it had staying power,” he added.

The Place in SwissBorg’s Ecosystem

Today, Solana plays an important role in SwissBorg’s operations, most notably the integration of leading Solana DEXs like Orca and Raydium into SwissBorg’s meta-exchange, which is powered by 11 centralised and decentralised exchanges. The meta-exchange enables trades to be routed and fractionalised across multiple order books to always find the best liquidity and rates, often outperforming all other competition on the market.

Fazel described a common scenario: a SwissBorg user wants to convert Swiss francs into SwissBorg’s BORG token. Typically, this involves converting francs into Solana via a centralized exchange (CEX) and then using Solana to acquire BORG, either on a CEX or a decentralized exchange (DEX).

High gas fees would make DEX usage impractical, as the costs would outweigh the benefits. “If the gas prices were high, we would never use DEXs and would always stick to CEXs,” Fazel said.

With Solana’s low fees, however, this process becomes feasible, enabling SwissBorg to prioritize DEX trading when it offers better prices. Additionally, SwissBorg has introduced a feature that batches multiple DEX transactions into a single order.

“We group five or ten transactions into one to lower costs even further,” Fazel explained. This batching not only reduces fees but also minimizes exposure to maximum extractable value (MEV) attacks. “By combining transactions, there’s a smaller chance of getting sandwiched,” he said.

Beyond cost savings, Solana’s speed and scalability has allowed SwissBorg to scale its services. Fazel stressed that this scalability translates directly to better user experiences. “It’s not just about technology — it’s about providing seamless tools for our community. Solana lets us do that,” he added. 

While Solana is an important part of SwissBorg’s ecosystem, Fazel highlighted the need for diversification. “Relying on one blockchain is risky. It goes against the principles of decentralization,” he said.

SwissBorg has adopted a deliberate, “Swiss-style” approach to blockchain adoption, carefully evaluating potential options. “We’re very slow on this model,” Fazel explained. The company is exploring Ethereum Virtual Machine (EVM) compatibility with platforms like Base and Arbitrum but has yet to commit to a specific chain. “For now, we haven’t found the perfect fit,” he added.

Fazel highlighted that this cautious approach includes exploring grants and partnerships to align efforts with meaningful collaboration. “Acknowledgment of our contributions is important to us as a collaborative company,” he noted.

Reflecting on their integration with Solana, Fazel explained that SwissBorg never sought external funding for their work but focused on building tools that benefited both their users and the broader ecosystem. “We always tried to help ourselves in both ways, which worked out well,” he said. This model serves as a foundation for SwissBorg’s ongoing exploration of new blockchain partnerships.

Solana’s Role in the Future of DeFi

Solana’s combination of speed and low transaction costs makes it an excellent choice for building decentralized finance (DeFi) tools. Its ability to process large volumes of transactions at minimal cost sets it apart from other blockchains, enabling projects that might not be practical on platforms with higher fees. For SwissBorg, these characteristics are essential in creating financial tools that are both efficient and accessible to users.

SwissBorg’s integration with Solana extends beyond its operational benefits. The BORG token, which has been bridged to Solana, plays a central role in the ecosystem. Complementing this, the SwissBorg community has created BorgPad, a liquidity bootstrapping protocol designed for fair launches. This initiative empowers projects that align with the ethos of decentralization and community-driven growth, embodying the collaborative spirit of DeFi.

Fazel also commented on the rise of fair launches and community-driven projects. While he acknowledged that trends like meme coins can seem frivolous, he emphasized their importance in keeping the ecosystem dynamic. “Meme coins and fair launches bring new people into the space. They create engagement, which is vital for growth,” he said.

The company’s move onto Solana also included a focus on liquid staking, an area the platform explored extensively with Jito. “We’ve been working with Jito for a while now, particularly on liquid staking,” Fazel shared. This collaboration eventually led SwissBorg to consider re-staking, a concept that has gained attention despite being a somewhat controversial topic. “Re-staking is something we’ve been experimenting with, and we still see potential in it,” he added.

Beyond Solana, SwissBorg has also worked closely with EigenLayer, becoming one of the largest providers of ETH and USDC on its protocol. “Many of our users have farmed their tokens successfully, and the rewards have been strong,” Fazel said.

However, he noted that EigenLayer’s business model focuses on risk management across different Layer-2 networks, which makes its use case more niche. “They’ve built something solid, but the business case hasn’t yet fully proven itself. Despite this, EigenLayer’s $15 billion in total value locked (TVL) is impressive,” he explained. 

Jito, on the other hand, has taken a different approach by incorporating MEV rewards into its liquid staking protocol. “Their idea of distributing MEV rewards to data nodes and validators is really fresh,” Fazel added.

Inspired by this model, SwissBorg spin-off Kyros has now developed a re-staking protocol on Solana in partnership with Jito. “Kyros.fi delegates rewards to different validators, and it’s a really exciting step forward for DeFi on Solana,” the CEO shared. The protocol will go live in the coming weeks, with Fazel highlighting its potential to drive engagement without requiring massive amounts of TVL.

Looking ahead, Fazel is optimistic about the possibilities DeFi offers and the role Solana will continue to play. “Solana’s strengths help us stay at the forefront of what’s happening in DeFi,” he said. For SwissBorg, the blockchain remains a vital part of its mission to democratize access to finance. Its scalability, low costs, and adaptability have made it a reliable partner for building tools that empower users.

As SwissBorg explores opportunities with other blockchains like Sui, Fazel sees Solana as an integral piece of the puzzle. “We’re always looking ahead, but Solana consistently helps us deliver on our mission to give people the tools they need to take control of their financial futures,” he concluded.

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