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Solace Announces Phase 1 of $SOLACE Airdrop

Edit: As of April 6, this article has been updated to separate the airdrop into three phases, introduce a points system, and to include an explanation for retroactive rewards.

Solace, the decentralized insurance protocol, announces the first phase of the $SOLACE airdrop. This article will explain what’s the scope of the airdrop, how the airdrop is broken between it’s phases, how users obtain eligibility and points, and how it measures each user’s airdrop size.

Airdrop Overview

Solace will be distributing up to 2% of the total token supply, or 20,000,000 $SOLACE. By participating in the growth of the Solace ecosystem and community, $SOLACE holders will be eligible for the airdrop.

The airdrop utilizes a points system, where users are rewarded for engaging with the Solace community and ecosystem.

The airdrop will begin with Phase 1 — Community Bootstrap. In Phase 1, existing and new community members will earn 40 points for each new member they invite to the Solace Discord server. Throughout all phases, points gained from new member invites will be counted towards the airdrop.

After two weeks, Phase 2— User Engagement begins. In Phase 2, we’ll begin capturing discord members and wallets engaging with Solace via purchasing policies, staking, and locking $SOLACE token. Then, Solace will take a snapshot at an undisclosed date of current and past policyholders, token holders, and stakers.

After the snapshot, Phase 3— Lockdrop begins. In Phase 3, users that are eligible for the airdrop can choose to claim their tokens to one of their existing $SOLACE locks and multiply their airdrop reward size, or directly claim the tokens to their wallet.

Airdrop Tokenomics

Solace will be distributing 2% of the total token supply, or 20,000,000 $SOLACE, to policyholders and $SOLACE stakers. This 2% is coming from a portion of the Incentives distribution, which originally had 8% of $SOLACE for liquidity mining incentives. Below is the breakdown of token distribution with the airdrop:

Breakdown of $SOLACE Token Distribution

Discover more about Solace’s tokenomics in our previous article here. Find the Aragon Solace LaunchDAO token distribution vote here.

Phase 1: Community Bootstrap

Phase 1 is focused on driving community growth. Therefore, new and existing users gain eligibility to the airdrop by joining the Solace Discord server and inviting people to the server. Each valid invite will be worth 40 points to the airdrop.

Phase 2: User Engagement

In Phase 2, users have several options to increase their points for the airdrop. The first way is to buy a Solace Wallet Coverage policy. For policies, the airdrop reward is relative to the highest position covered in a wallet. The higher the position covered, the larger the reward.

The second way is to refer users to buy a Solace Wallet Coverage policy. Currently, any user with a policy can create a referral code that they can share to get $50 free coverage for both themselves and their friends. The more referrals, the larger the reward.

The third way to access the airdrop is to stake and lock $SOLACE tokens. For staking, the airdrop reward is relative to the size of the $SOLACE stake, and the time length of the lock. The larger the $SOLACE stake, the larger the reward. Similarly, the longer the lock time, the larger the reward.

For example, a user locking $SOLACE for four years will have significantly higher points accumulated than a user that locks $SOLACE for one month.

Global Multipliers

Moreover, multipliers are also activated based on the greater community’s engagement through metrics such as number of policyholders, number of token holders, number of $SOLACE staked vs. circulating, average lock time, among others. The more tokenholders, the larger the reward per person. The more staked SOLACE, the larger the reward per person. The more covered capital, the larger the reward.

Once Phase 2 begins, more details will be shared about points for the above behaviors.

Phase 3: The Lockdrop

In essence, the lockdrop is like an airdrop, where eligible wallets from a snapshot will be able to claim their tokens. The difference is that users have the option to invest their claimable tokens into one of their existing $SOLACE locks to further multiply their airdrop reward portion. Moreover, locking the airdrop will accelerate their reward earnings and increase their voting power in the Solace DAO.

How To Become Eligible for the $SOLACE Airdrop

As described above in the Phase 1 section, there are five ways to gain eligibility in preparation for Phase 2. [Note, even though Phase 2 hasn’t begun, you are still able to

  1. Invite users to the Solace Discord server
  2. Buy Solace Wallet Coverage on Polygon or Ethereum
  3. Stake and lock $SOLACE on any supported chain
  4. Provide Liquidity in any of the $SOLACE Pools
  5. Retroactive Bonders, Stakers, and LPs

Discord Community Growth

We want to reward community members that are activating the community at large, which is why users that join the Solace Discord server can increase their airdrop rewards by inviting new members to the discord.

Buy Solace Wallet Coverage

Solace Wallet Coverage is a game changer in DeFi insurance. It is the first and only DeFi insurance product that allows a user to get one policy for their wallet and insure positions for over 180 DeFi protocols across Ethereum and Polygon. The coverage is personalized to your wallet’s portfolio, even if you change DeFi positions daily.

Solace Wallet Coverage improves on several friction points users deal with from competitor products, such as fixed coverage amount and time lengths, fixed pricing, and requiring users to manage their insurance policies as their DeFi portfolio changes.

Learn more about Solace Wallet Coverage in the video below:

Want to Buy a Policy and cover your DeFi activity? Check out the video above.

We encourage users to activate their first policy on Polygon to avoid high gas fees and guarantee they’re covered on both chains. If you need MATIC for gas, check out PearZap’s Faucet.

If you want to discover the power of Solace Wallet Coverage, check out our latest article explaining the risk assessment process behind the scenes.

Stake and Lock $SOLACE

$SOLACE is a “rights to fees and governance” token, taking its inspiration from the Curve “ve” token model. $SOLACE holders obtain governance rights and rewards from policy sales and token emissions once they stake their tokens. Moreover, they can increase their reward size by taking advantage of staking locks to multiply their rewards and voting power.

Learn more about the token utility in the video below:

Stake your $SOLACE to obtain rewards and voting power in the Solace DAO.

Provide Liquidity for $SOLACE Pools

Solace has currently has three active liquidity pools. These pools are:

  1. $SOLACE/USDC pool in Sushiswap on Ethereum
  2. $SOLACE/FRAX pool in Uniswap on Polygon
  3. $SOLACE/wNEAR pool in Trisolaris on Aurora

Currently, the Trisolaris and Uniswap pools have a liquidity mining incentive, distributing 6 million $SOLACE for each pool over 90 days. The incentive on Trisolaris began on February 8, while the incentive on Uniswap began on March 7.

Learn how to provide liquidity here.

Retroactive Rewards

Users that have previously bonded, staked, locked, or bought policies prior to the airdrop announcement will be eligible for the airdrop. Testnet users will also be eligible. More details will come to point values for each behavior once Phase 2 begins.

$SOLACE Resources

Below is a list of several articles and docs you can use to learn more about Solace Wallet Coverage, staking, locking, and the $SOLACE token.

  1. Solace Wallet Coverage on Polygon
  2. How and Where to buy $SOLACE
  3. How to Stake and Lock $SOLACE
  4. How to Provide Liquidity for $SOLACE

If you have any additional questions about the airdrop, reach out to the core team in the Solace Discord here.

About Solace

Solace is a decentralized insurance protocol. Born as a DAO, Solace’s mission is to build innovative and intuitive insurance products for DeFi explorers. With its Wallet Coverage, Solace separates itself from other crypto insurance competitors by offering simple, scalable and transparent insurance for people who want to freely explore DeFi without the hassle or worry that they’re not covered.

Solace is backed by builders like Illia Polosukhin (NEAR), Sandeep Nailwal (Polygon), Evgeny Yurtaev (Zerion), Julien Bouteloup (StakeDAO & rekt.news), Alex Shevchenko (Aurora), Preston Van Loon (Prysmatic Labs), and Seth Ginns (Coinfund) who are assisting in the expansion of Solace across DeFi. To learn more about Solace, check out the links below.

Website | Medium | Twitter | Discord | Docs | Notion | Github | Telegram

Unlisted

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0xnimz

0xnimz

Head of Growth @ Solace | USC Grad Student | writing ✍️ | musician 🎸