Introducing Bonding Mechanism for SOUL

Protocol Updates
1

As promised, we will roll out some significant upgrades to the protocol this week. The primary upgrade involves a new mechanism for minting $SOUL, which involves bonding your LP in an innovative manner.

Please note that this will consume 25% of total SOUL emissions and will begin this Saturday.

Another thing to take note of is we will remove the 14% withdrawal fee from the SoulSummoner in order to enable anyone to move freely out of the Summoner and into bonding, which will enable our most loyal users immediate access to this attractive alternative means of acquiring SOUL.

The secondary benefit of this move is it will provide us with more agility in terms of adjusting the rewards on the Soul Summoner to better align with volume without users feeling stuck behind a fee they are bound to. This opportunity cost was originally overlooked in our fee-structure.

We hope these new initiatives will enable us to grow our liquidity twofold:

  1. Bonding means more liquidity held by the DAO, which means less need for providing SOUL incentives in the future. Our ultimate goal is self-sustainability and a removal from a rental model (paying to rent liquidity).

  2. Fee erasure will incentivize more participation in the liquidity mining as we will no longer deter the fee-antagonists.

Please use this forum to discuss your views, thoughts, opinions, etc. We would love to hear from you!

OUR DISCLAIMER

Please ensure you fully understand these conditions prior to interacting with the Soul Bond contract. We are not responsible for any accidental losses and we are not advising you to invest in anything, so please do your research and ask us questions, if there is any aspect you do not FULLY understand.

The contract is unaudited, so please use at your own risk. We are not responsible for any financial losses or otherwise.

Key Considerations

  • When depositing, you are surrendering your deposit to the DAO Treasury upon minting SOUL.

  • You are contributing to the ecosystem and are rewarded with variable gains paid out in SOUL.

  • You may only claim once – it is all or nothing.

  • You must claim before creating a new bond.

Warm Regards,
Enchantress Buns

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Love what you do!! Keep it up please!!

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Love the idea of doing away with LP incentives for farm and dump crowd.
Point I like to bring forward is if there is going to be a use case for stablecoin within the POL
I suggest looking into the possibility of using MOR stablecoin.
It has a unique mechanism with profit sharing allowing the protocol to generate more yield
They are about to launch on fantom January 22/22
Thought I share

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Thanks for sharing!

Just curious where you think a stable comes into play with our PODL? What makes this option preferable over collecting LPs? As we are primarily interested in acquiring liquidity reserves to facilitate trading, though I am open to ideas you have for integrating a stable coin.

@Love please make a separate topic for that discussion, if you find it will bring light to a valuable aspect the protocol is missing out on.

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Love what you are doing here. I do have one question regarding the bond APRs. Will these remain fixed?

[Update] Ignore that, I have just seen that they are changing. It may have seemed like a stupid question to start with, but if the APRs change drastically, then the cost of locking funds could be prohibitive.

1 Like