View original announcement at https://medium.com/soda-finance/the-soda-revolution-9185fdb99fc1
Whether you’re a Sushi Chef or you totally missed the boat, no worries. Either way, you’re going to love SODA!
SODA is the next generation of DeFi that will take Yield Farming to where it has never gone before! Strap in and get a straw — this is gonna be soooooo good!
Different from other projects, Soda is far more than just another farming token — that’s so “July” and boring. For instance, with SODA, you can borrow and invest with higher leverage via our unique and awesome SoETH token, completing the DeFi loop back to Ethereum (take that Sushi!).
What’s so special about Soda?
Ready to be impressed? SODA uses novel dual token economics(SODA and SoETH), and this means that anyone can deposit Wrapped Ethereum (WETH) along with other assets to earn SODA. In return, you can choose to borrow SoETH from the protocol and use SoETH to earn even more SODA.
Just like in the traditional financial world, Soda allows you to make money off of borrowed assets, and therefore, increase your profits exponentially. Perhaps Vitalik (the father of Ethereum) will take a sip of SODA and appreciate our innovative approach.
This is just the beginning of our sweet adventure and you will see more magic from us in the future. It’s SO(DA) good!
How to get SODA and SoETH
We currently have a total of 4 pools and each of them has unique features.
Pool 1 is for WETH. Simply deposit WETH and earn SODA tokens automatically. While deposited in this pool, you can borrow SoETH without losing any of your farmed SODA and leverage your investment even further for more fizzy rewards.
Pool 2 is for USDT-ETH SLP. With this pool, you farm two tokens at once: SUSHI and SODA! This pool utilizes the SushiSwap project.
Pool 3 is for SoETH-ETH UNI-V2 LP. This pool provides the initial liquidity to SoETH. Theoretically, the price of SoETH and WETH will be 1:1, but fluctuations can occur. This pool gets 2x rewards.
Finally, Pool 4 is for SODA-ETH UNI-V2 LP. While you contribute liquidity to SODA, you will receive 4x rewards plus the revenue reward of SoETH! (see Soda Revenue below)
When you deposit tokens into any SODA pool, your deposit is wrapped and returned as a “vToken” which represents the liquidity you provided to the pool. When you withdraw your deposit, the vToken will be burned. Simply put, the vToken represents ownership of your deposited assets; do not transfer this token to others, otherwise, you will be unable to withdraw your assets.
The genesis reward token distribution will occur on September 16th (UTC) at 12:00a.m(0:00). The list of eligible LP tokens can be added in the future via on-chain governance by the community of SODA holders.
During the mining of every Ethereum block (about 15 seconds), 100 SODA tokens will be generated. These tokens will be distributed proportionally to all who participate in the listed liquidity pools. However, for the first 100,000 blocks (about 2 weeks), the amount of SODA tokens produced will be 10x higher; resulting in 1,000 SODA tokens being minted per block which will reward early farmers and adopters of the protocol. Once SODA is live, the community can vote to add more liquidy pools and change the reward weight of the pools.
SodaDev Pool
Unlike Chef Nomi of SushiSwap, who withdrew and sold the dev tokens before the migration of the liquidity pools, we want SODA to be a long-term, successful project with a team that has the project’s best interest at heart! With this goal in mind, just 5% of all SODA generated will be added to the SodaDev Pool for continued development, future iterations, and a comprehensive security audit (see below for more details). Anyone can swap SoETH for SODA within this pool at a fixed 95% discounted price of SODA value. To make a community-first ecosystem, we, the developers cannot withdraw SODA from this pool but only SoETH.
To The Future!
To The Future!
The total supply of SODA tokens will be 330,000,000 with distribution being completed in about one year. So, you may be asking yourself after all SODA tokens are distributed, why will users continue to stay in the Soda project? Well, our unique Dual Token Model and Soda Borrowing will continue to benefit all involved! Now let’s dive into the scientific, economic, and engineering details.
Dual Token Model
The Soda project has a unique dual token economic model:
- SODA token plays the role of rewards for liquidity providers.
- SoETH is a fully collateral-backed currency whose value is soft-pegged to that of WETH (WETH is wrapped ETH in ERC20 format, whose price is anchored to ETH).
We believe that LP tokens have higher intrinsic liquidity and financial value beyond its stated value. Due to this, users can generate SoETH by depositing collateral assets into the Soda Borrowing. Every SoETH in circulation is backed by excess collateral.
When the price of 1 SoETH is above the price of 1 WETH, market arbitrageurs are encouraged to sell SoETH, which will reduce the price of SoETH to meet the target price of WETH. The same holds true if the value of SoETH is below that of WETH.
During the beginning stage of Soda Borrowing, only WETH can be deposited as collateral to generate SoETH. However, all SODA holders can also vote to accept new collateral assets expanding the liquidity and usability of SODA.
Why do we need SoETH?
In our example case, imagine an individual has 100 WETH staked in the Soda protocol, and as a result, is earning SODA tokens. While enjoying the passive income, the individual can choose to receive a loan of up to 70 SoETH that is collateralized via the protocol. The SoETH token can then be swapped to WETH via Uniswap allowing them to leverage an additional 70% of their investment and even stake the additional WETH and earn even more SODA.
SoETH helps leverage more liquidity for collateral assets. How sweet is that!
Even more than SoETH?
Our smart contracts are very well-designed which allows for future “SodaMade” tokens; the SoETH token is just the first of many. In the future, we are prepared to add new loan calculators into the system which will allow us and the community to generate other types of asset-backed tokens — for example SoBTC or SoUSD. Don’t be surprised when you see these assets available in the future!
Soda Borrowing
Deposit accepted collateral assets into the Soda protocol to receive SoETH. The initial borrow ratio is 70%, and the initial liquidation ratio is 90%. For example, if you deposit 100 WETH into Soda protocol, you would receive 70 SoETH. When your debt plus interest fees is above 90 SoETH, your collateral would be at risk of liquidation. Both borrow and liquidation ratios can be changed within a specified range via the governance system.
Pay down debt and interest fees
To retrieve a portion or all of the collateral, borrowers must pay down or completely pay back borrowed SoETH plus interest fees that have continuously accrued on the outstanding SoETH. The initial daily interest rate is 0.05% (18.25% yearly). SODA holders can vote to change the interest rate to a maximum of 1% daily (365% yearly). The interest fee must be repaid in SoETH.
Liquidation
When the borrower’s debt plus interest fees is above the collateral value and liquidation ratio, the collateral will be under risk of liquidation. Anyone can trigger the process through the smart contract. The liquidator will retrieve the collateral plus the farming rewards by paying back SoETH at a discount ratio.
Discount Ratio = 50% * (Liquidation Ratio + 1)
All debt, interest fees and liquidation fees must be repaid with SoETH. The debt portion will be burned by smart contact and the remaining goes into the Soda Revenue.
Soda Revenue
The Soda Revenue Pool collects the profit of Soda Borrowing including interest fees and liquidation fees. 90% of all collected SoETH tokens will be sent to Pool 4 (SODA-ETH UNI-V2 LP) and will be distributed proportionally by the LP stakers. While the remaining 10% goes to the SodaDev Pool.
Smart Contracts
Smart contract list available on announcement page.
Security Audit
Security is important to us! We have completed reasonable Unit code coverage and system testing via the Ethereum testnet.
However, we want our project to be the most secure on Ethereum! To help with this, we are fully prepared to pay 5 ETH for the first 5 experienced smart contract community developers who audit the code and report any found bugs in the Soda smart contract repository, which is available at github.com/soda-finance.
In the meanwhile, we also invite professional security companies to audit Soda’s smart contracts for further safety.
In fact, compared to many other projects, SODA was developed by real, professional solidity developers with years of experience! Regardless, we want to be sure all the smart contracts are secure before putting any assets at stake! Everything is considered BETA; use at your own risk.
You’re Invited to Participate — Join Us!
We welcome you to participate and earn early extra farming rewards! To support a fair, public release, we are waiting 48 hours after publishing this article, releasing all code on Github (link below) for initial review to launch the Soda project and distributing the genesis SODA rewards!
To take part in this project as early as possible, visit soda.finance on September 16th (UTC) at 12:00a.m(0:00). After joining a pool, be patient to get your first SOOOOODA!
Follow Us & Participate
- User Interface：soda.finance
- Discord Server: discord.gg/Tbzh8tF
- Twitter: @Soda_finance
- Github: github.com/soda-finance
View original announcement at https://medium.com/soda-finance/the-soda-revolution-9185fdb99fc1