To our friends and supporters:
What a turbulent week across crypto and macro markets! Just as things were looking a bit bleak with token prices tanking everywhere, sentiment has swung around again with the latest US political developments and ETH ETFs approvals appearing imminent!
As always, the SOFA team remains hard at work and our protocol has seen an encouraging pick up in new users and daily inflows, with cumulative inflows having surpassed $159M and total users breaching 10k. A series of successful trading competition campaigns with our protocol partners and the launch of our leveraged functionality most certainly contributed to last week’s success.
Protocol Update
Last Week:
- Successfully launched our ‘Leveraged’ functionality on our Earn products, which enjoyed significant user reception and product traction
This Week — Lots of New Token Denomination Support!
- We will be launching our long-awaited stETH denominated products in Earn & Leverage formats, marking a key SOFA milestone as the first yield-enhancement DeFi protocol for Lido’s stETH token
- Launching USDC denominated Earn & Surge products
- Launching RCH denominated Surge product
New Milestones
- SOFA has now contributed to ~25% of total USDT quota on Arbitrum
- Total inflows exceeded $150M, with over $50M added in the past 1.5 weeks alone
- Wallet users surpassed 10000+, gaining 6000+ new users in the same past 1.5 weeks
- Announced partnership with BTC L2 chain Merlin Chain to expand our ecosystem reach while driving volume growth
- Collaborating with OKX Web3 Wallet on a new giveaway campaign
- Hosted a successful event with dappOS at ETHCC with a follow-on co-marketing campaign
- Officially announced UK-based Block Scholes as our research partner, offering institutional quality research on DeFi structured products soon to be available to our community
Since our launch on June 7th, the SOFA protocols have seen tirelessly expanding our product offerings, token coverage, protocol collaboration, and overall community outreach as we have set up to do from the get-go. We are blessed to be at a stage where we have a full list of integration and expansion work with our partners, and we will be spending the new few weeks to target, study, and execute tangible deliverables from many of our recently announced partnerships.
Please stay on the lookout as we will continue with our A series of community and co-marketing events, while letting our protocol stats speak for themselves as our collaboration efforts begin to be monetized.
Stay strong our friends, the best is yet to come!
A Quick Note on Our Leverage Functionality
Our leveraged functionality was very well received by the community, many of which had reached out with feedback desiring a modified version of our popular Earn product with a more aggressive upside. As asset safety is always our 1st priority, we didn’t want to operate a conventional leverage model which could incur systemic liquidation risks across the protocol. As such, we opted to design a variation that would still cap the maximum exposures within our vault-locked assets, while finding an optimal model balance where depositors could choose to ‘risk’ just a tiny fraction of their deposit for significantly higher return possibilities.
As market conditions evolve, user risk preferences will naturally adjust as well, so we will continuously monitor our ecosystem feedback and calibrate our leverage parameters as needed. Please continue to share your thoughts and feedback with the team as always!