Hi, glad to see the Sonne Finance application.
Could you please make available the twitter of the members and links to where they worked before or currently?
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Hello @ScaleWeb3 and thanks for your appraisal, thoughts and criticism!
We believe that it would be unfair to seperate tokenomics from the project, as itâs one of the main reasons for this traction of Sonne Finance. Our ability to create demand for SONNE token, and SONNE staking is what enables us to grow while not destroying the token price. (LGE price was $0.04)
Also with the current rate of utilization and total borrows, $250k/yr buying pressure for SONNE is there. (Not considering the VELO reward distribution.)
We agree that we havenât launched an unexplored niche yet, but even now, SONNE is the best liquidity market for OP token. In just 3 weeks, we filled the gap of utilizing OP better than other examples in your message. And as we stated above, competition is healthier for both users and Optimism ecosystem rather than monopoly.
Hundred Finance, Iron Bank, Granary etc. is here for longer than us, but had hard time to gather liquidity. This is the power of being native. Also, because we are native to Optimism, we can act fast and do updates faster than our competitors. This may not be an example for filling a gap, but for example, we integrated our pool on Velodrome in our website for ease of users on Optimism:
https://sonne.finance/swap
Also, wanted to add that Sonne is the only project among those that considering Optimismâs unstable blocks per year in order to calculate the true APR (both supply/borrow and reward APR) for users.
Tarot and Homora has isolated pools for leverage farming, so itâs less dangerous for them to have âexoticâ liquidity markets. Sonne adding those pairs would danger not just Sonne holders but whole liquidity suppliers. Weâll add those tokens when they have good liquidity on Optimism.
Sonne being native and being able to incentivize the activity on Optimism is another value proposition that is supported with the TVL growth on Sonne and Optimism since the day we launched. This short-term success already made an example for other teams to launch on Optimism. We are already in touch with two protocols (to be launched on Optimism as native protocols) to pass the knowledge and experience we had and are having.
For co-incentives part; our liquidity from LGE was locked in Velodrome Finance for 6 months and this locked liquidity makes 71% of SONNE/USDC pool and has $125k USDC in the pool. Even everything goes bad, even without considering protocol revenue buying SONNE back, and even without considering VELO distribution incentives for SONNE stakers, our co-incentives will be equal to 75% of asked OP. Based on current trend, the co-incentives will be 819% of asked OP.
TVL is one of the biggest marketing tool for DeFi ecosystem and growth of Optimism. Just to give an example to this, a user opening the DefiLlama to see whatâs happening in Defi in general, he/she will see this:
Being in the first eight or not in TVL is a huge difference there for appearance. And itâs just one example. Also, more TVL equals better liquidity and more usage. Although itâs overrated in general, we believe that TVL growthâs importance should not be underrated either.
Proposalâs first edit was asking 500k OP for 1 year, and we edited that for 6 months and half the OP asked.
Near-term roadmap looks like this:
- We are in touch with QiDAO, and will discuss about how MAI can be utilized in Sonne Finance.
- We are in touch with DLC.Link, and will enable native BTC lending/borrowing on Optimism in 4-5 months.
- We are in touch with Synthetix to discuss how SNX can be utilized in Sonne Finance to help Synthetixâs grow more on Optimism.
We are in touch with two of the biggest banks in Turkey and Turkish Real Estate Exchange for having collateralized NFT-based loans (for real estate) on-chain, but that doesnât look like to happen in near term. We are well-equipped for integrating financial NFTs (like veVELO) as collateral, but on-hold for a better environment to launch that.
Thanks for the reply and thoughts, and will appreciate future feedbacks as well! If our answers didnât satisfy, weâll try to answer them again!
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Hello @OPUser !
We donât believe that is the only reason will move to Optimism, but also believe that thatâs one of the main reasons for migration.
Will update the github as soon as possible.
Right now we donât have the exact data for that, but started working on that. It will be up soon. Will edit this message once itâs up.
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Hello @AxlVaz . Thanks for the appraisal and sorry that we missed this question.
Our developers do not want public doxxing, but if you want, we can provide the information in private message.
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Not public doxing, but outside of atakan which is a known figure we know very little about the rest of the team.
Which one?
Which ones?
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Could you touch on your vision for NFT-based loans? Iâd be interested to hear your long term view on using uniswap v3 LP positions and other financial NFTs as collateral.
So this was a thread i wrote almost 2 years ago: https://twitter.com/DefiIntro/status/1358059563556237313
This happened last week : https://twitter.com/Rusty_Bill/status/1582098885933027328
We believe that one day DeFi will be just Fi. NFTs (or a better tech in the future) will represent most of real world assets, and people will be able to take loans against them.
We are working and will continue to work towards this goal. Right now we are in education phase, as we first need to educate and convince those institutions to make this happen, and itâs a very slow process. But if traditional banks accept real estate as collateral, why shouldnât we?
If you were asking about financial NFTs, the NFTs need to be liquid in platforms like Quix. Letâs say, volume of veVELO or Uniswap v3 LP positions grow a lot on NFT markets.
The liquidation can be done with auctions or anyone can pay the borrowing amount to take the position. It has been done with normal NFTs (like BAYC etc.), but it was not a great idea to do so with those assets at that time, as it was endangering suppliers.
The UI and UX should improve for the financial position sales. If NFT markets can achieve that, and if people start to trade those positions, and if the volume is good enough for us to integrate, there is no reason why those shouldnât be collateral. Though, the c-ratios will be very low at first in order to protect our suppliers.
It will be a hard task to decide for c-ratios, interest rates etc. for every position for Uniswap v3, but itâs not undoable. NFTs like veVELO wonât be that hard though, so weâll probably add those first. (the NFTs that represent staking)
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Hello @Netrim !
For Gathon, we can provide the information privately. He is not comfortable sharing it publicly, as it would instantly doxx him.
For Ameterasu, she was working with me in a VR startup for one and a half year. It was an awarded project in Turkey as âTurkeyâs best VR/AR productâ in 2022, but business-wise it didnât achieve what we want it to achieve, so we dismissed that project.
I had a vision for a long time for liquidity markets, and she was a very good full-stack developer according to our CTO at the time, so I offered her to study solidity/web3 development (specifically liquidity markets) instead of looking for a new job around 10 months ago. She took the offer, killed it and here we are working together to make Sonne shine. Hunger for success and hype of Ameterasu combined with the experience of Gathon made a great combination of a core dev team.
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I am not interested in private doxxing, it would put me in a difficult position all around and I am not a delegate nor a committee member.
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Sonne made a good entry to the optimism ecosystem and i especially like the innovative tokenomics and launch mechanism of getting Protocol Owned Liquidity in the fairest way possible through a LGE. Bribing and farming with POL then distributing POL farmed Velo to its stakers to generate a immediate source of revenue and incentive to stake the token, instead of farm and dump.
A new way of launching tokens, only possible on a chain that have a succesful solidly-type dex with good traction.
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I feel the responses Sonne made to the questions and comments were reasonable and well stated.
I believe some healthy competition is good regarding similar protocols.
The git repo update does seem a bit important however. From what iâve gathered from the Sonne docs, the team token allotment has a 2 year linear vest with a 3 month cliff. This seems to show commitment to the project and OP eco. Allowing the community to run diff checks on the source and confirm the vesting contract(s) could be helpful in garnishing support. Hopefully the update indeed does take place soon and might be something that attracts a second delegate to put this to vote.
A further note is that the current market size and TVL seems to be about 50% more than what is stated in the proposal. considering this, and the term asks in other proposals, I feel like 250k tokens over six months is more than reasonable. I could be crazy here, but even twice that amount is something I would not oppose although iâm mostly a nobody in opinion weight. Six months imo is a very long time in the defi chrono bubble.
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market cap is over 1 million. does that mean this figure has doubled to 2000% now?
I feel like anyone that would have sold from that first big spike after the LGE, would have sold already. The sonne discord looks active and the recent PA seems to be organic in nature. Can never tell of course but i feel like all things considered with sonne on velo and tarot and the native staking apr on the sonne platformâŚthis trend in price appreciation could continue or at the very least hold current market cap.
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Hello Delegates with enough voting power: Is the Sonne Proposal far enough along to move to a vote?
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I think it maybe a good iead.
I support Sonne. 