Soda V2 🥤🥤🥤 Do You Like This Proposal?

Soda.finance
Oct 4, 2020 · 4 min read
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The SODA token’s circulation is approaching 100,000. We, the Soda team, appreciate the support that we have received from all of you.

Again, yield farming is a highly risky game. We understand that the SODA token’s price went down a lot, but everything happened was purely due to the supply and demand of the market. Don’t participate in anything that is beyond your risk tolerance.

It was mentioned earlier that, after the initial 100,000 tokens are distributed, we will let the community vote to decide what to do next.

Here is a proposal from us, called “Soda V2”. It comes from us the dev team again, but Soda holders, you have the right to approve or disapprove it. You can also join the discussion in Discord https://discord.gg/Tbzh8tF

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SODA V2 = YFI + MakerDAO

In Soda V2, there will be no more yield farming. However, we will provide different investment strategies though our vaults.

To do this job better, we will learn from other projects, for example YFI, YFII, or YFV.

The system may charge up to 10% of the investment profits as fees. And the fees will be used to cover gas cost, to provide incentives for strategy providers, to purchase insurance, and to be distributed to SODA holders as dividends. Different vaults may have different allocation plans, and the details should be subjected to decentralized governance.

And the Soda project will continue to create bubbles. Just like how SoETH (SodaEthereum) was created, users will be able to create a new series of “SodaMade” tokens, by using vault assets as collaterals. As we will be using new algorithms, the new series of “SodaMade” tokens will have a prefix of “sd” instead of “So”.

“sd” tokens will be more advanced than “So” tokens that 1) Borrowers can pay their debts with installments. 2) It will support a wider range of collaterals.

For instance, if there is a USDT vault that provides a positive APY, now you can not only stake your USDT to gain interest from it, but can also borrow from the vault to get sdUSD.

The legacy SoETH tokens will still be supported until most of the loans are paid off (And we the team will do the best to facilitate the process).

A Total Supply of 200,000

We propose to cap the total supply of SODA to 200,000, and to generate the remaining 100,000 SODAs in 5,000,000 blocks (takes approximately 2 years time) based on the following rules:

  • Only liquidity providers of “sd” tokens can get SODA as incentives, and the allocations among different “sd” tokens should be decided by decentralized governance.
  • We the Dev team, will charge 10% instead of 5% from the minted tokens. In Soda V2, we will spend more effect to make sure all contracts are safe, and pay auditors to do the job, thus ask for a higher percentage.
  • We will let the community decide when we can pull the trigger to start the generation of the remaining 100,000. And once the trigger is pulled, the process will last for 5,000,000 blocks.
  • No more incentives for holders of SODA-ETH-UNI-V2-LP. Providing liquidity to SODA is too risky, and we don’t want to see any users losing money from it again. As the project itself grows, we are sure it will gain liquidity from elsewhere, for example CEX listing.

Stake SODA to Get Dividends

Fees from investing, and interests from loans, are the revenues of the system.

After deducting operation costs like gas fees or insurance, the remaining part becomes the profit of the system.

We propose that any SODA holders can stake their SODA tokens for a minimum of 3 days to get dividends. And again, we the Dev team, would like to charge 10%, and the holders will get the remaining 90%.

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What Happens Next

On October 10th, on the Soda main website, we will provide UI to let SODA holders to delegate their voting power to themselves or anyone else (for example the dev).

After the voting power is delegated, the address with the power can vote to approve or disapprove any proposals.

The “Soda V2 proposal” will then be submitted by us officially, and let you decide whether we should move forward with it or not.

Once the proposal is approved, we will need approximately one month time to finish the development work and get the contracts audited.

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