[Asset Onboarding Application] - $ScnSOL - Socean Finance

Interested Party Profile

Name of the party submitting application: eggpanned from Socean Finance

Contact (forum / twitter / email): @eggpanned on Twitter

Submission Date: 14/6/22

If endorsed by Jet Community Member, list here:

Application Profile

What is your motivation for submitting this application?
The purpose of this application is to provide the Jet Community with details on scnSOL to approve its onboarding as collateral.

What is your association to the proposed asset?
I am the co-founder of Socean Finance, the stake pool of $scnSOL

What are the key benefits to the Jet Protocol for onboarding the asset?
It is widely integrated on many Defi Protocols. The utilisation for it as collateral has been high on other lending protocols such as Solend and Apricot.

What are the known limitations of the asset?
Pegged to SOL, therefore price is dependent on SOL.

Project Profile

Please provide a brief, high-level description of the asset’s native ecosystem (project), including protocol’s type (peer-to-peer/ peer-to-liquidity/ etc.).

tldr

Socean Stake is a stake pool for the Solana blockchain.

Socean Stake unlocks your SOL, earning you staking rewards while allowing you to participate in DeFi.

Longer description

Solana is a proof-of-stake blockchain where you can earn rewards by staking your SOL tokens. By staking your SOL tokens, you help secure the network and earn rewards while doing so. Everyone who holds SOL should stake SOL. However, there are two main problems with staking SOL.

Firstly, SOL holders face a fundamental trade-off between liquidity and returns. While staking SOL secures the network and grants staking rewards (~7% APY), staked SOL can’t be traded or transferred. This means that SOL holders must choose between locking up their SOL to earn staking APY, or holding unstaked SOL (giving up the staking rewards) in order to participate in the DeFi ecosystem (borrowing, trading, providing liquidity, yield farming etc).

Secondly, the UX of staking SOL is very poor. Staking normally to a validator takes up to three days to activate your stake, and three days to deactivate it. As a result, most SOL holders choose to delegate to only one or two validators. Many stakers will choose to just delegate with validators with a large amount of stake. But this is suboptimal for both network health and APY (high variance if one’s chosen validator underperforms).

The Socean stake pool solves both of these problems. Users can deposit SOL to receive scnSOL tokens, which represent that user’s ownership of the stake pool. We take that SOL and delegate it to validators using an algorithmic delegation strategy which maximises expected returns and minimises variance.

Who are the founding members? What is their current involvement with the project?
The founding members comprises of HY, FP, SF, eggpanned and Jesse. They remain the core team of Socean Finance. The founding team actively contribute to core development in the Solana runtime and participate in a variety of Solana ecosystem projects.

Also, the founding team worked with the Solana Foundation for many months, helping to develop the Foundation’s stake pool program. We have also received multiple grants from the Foundation to develop the stake pool ecosystem.

Please indicate the ICO date, initial price and valuation of the token and total capital raised (in USD and crypto terms).
NA - No ICO

How much of the capital raised via the ICO was converted into FIAT (in terms of FIAT currency and amount of tokens)?
NA - No ICO

What was the way of issuing and distributing the tokens? Were there pre-ICO investors?
Every $scnSOL is created when SOL is staked - it is a liquid staking derivative that is pegged to the value of SOL and increases in value every epoch, taking into account the staking rewards. In other words, it almost serves as an IOU for the SOL you have staked. NIL.

What is the current token distribution (project team vs. investors vs. public)? Has the token distribution changed over time?
As mentioned above, every scnSOL is created when SOL is staked in the stake pool, as such, 100% of the distribution

Are there any fees generated by the protocol? If yes, please provide details and amounts.
We charge a one-time withdrawal fee (0.03% of transaction size) and an ongoing management fee (~2.0% of staking rewards).

Is the protocol audited? By what firms? Please provide link(s) to the audit documentation.
Socean uses the Solana Foundation’s stake pool program, which we helped to write, develop and audit. In addition, the stake pool program has been audited by Kudelski, Quantstamp and Neodyme.

Other relevant project data or comments:

Asset Profile

Asset name: scnSOL

Asset type (native/ wrapped): Native

One-sentence description of the asset: Liquid staking derivative of SOL

What’s the purpose of the asset within its native ecosystem?

As scnSOL tokens are transferable and tradeable, they can be used in DeFi for utility and extra returns. For example, the scnSOL tokens can be used to provide liquidity in pools like Orca or Saber or as collateral via Solend for borrowing/margin trading. Users can swap scnSOL for SOL instantly via liquidity pools. As scnSOL tokens can always be redeemed for the SOL one put in there is no risk of losing one’s initial capital. In the worst case, scnSOL tokens are no less liquid than SOL staked to a validator.

Does the asset have any use outside of its native ecosystem (integrated protocols)?

  • Able to be used as collateral on lending protocols Solend and Apricot Finance
  • Covered call vaults on Friktion and PsyFinance
  • LP-ing on Orca, Saber, Raydium, Atrix, Saros Finance

Smart Contract address:
5oVNBeEEQvYi1cX3ir8Dx5n1P7pdxydbGF2X4TxVusJm

Asset Liquidity

What exchange(s) support the asset?

Orca, Raydium, Crema Finance, Atrix, Saber, Saros Finance

Does the asset have liquidity on Serum? What is the liquidity depth (resting orders)?
Yes, on Atrix.

Please provide 7-day asset trading history (daily aggregated trading volumes for trading pair of asset with USDC).

Which oracles monitor the asset? How many feeds are available?
Switchboard.

How often does the asset drop significantly in price?
It is pegged to Solana, so whenever Solana drops significantly in price.

For stablecoins only : Has the asset ever lost the peg? If yes, for what reason?
NIL

For wrapped assets only : Which bridges are used? Are they custodial or non-custodial? Are they audited?
NIL

What amount of asset’s liquidity exists in the integrated protocols (if applicable)?
102k scnSOL on Solend ($3M),17k scnSOL on Friktion ($532k), 15k scnSOL on PsyFi, 253 scnSOL on Apricot ($8k), 16,789 scnSOL-SOL LP ($457,679) on Saber, mSOL-SOL LP ($157,609.81) on Crema Finance, scnSOL-SOL + scnSOL-USDC LP on Orca, scnSOL-SOL + scnSOL - USDC + scnSOL-BTC + scnSOL-ETH LP on Atrix.

List any parties interested in taking part in liquidations for the proposed asset type.
NIL

Key Mechanics

How many active addresses/ users currently hold the asset?
315,805.09

Is the asset supply expected to increase or decrease over time? Is there a token burn mechanism? Is the project able to mint more tokens in the future?
Increase - as previously discussed, users deposit SOL to receive scnSOL tokens, which are minted and represent that user’s ownership of the stake pool.

Please explain the staking mechanism (if any).
On Solana, stake pools provide a way to delegate SOL to a validator delegation strategy rather than directly to an individual validator. Deciding which validators to delegate to requires technical skills and ongoing maintenance. With a stake pool, delegators can task a “pool manager” with deciding how to best delegate their SOL. Once delegators identify a stake pool manager or particular strategy they find favorable, they can deposit their SOL into that stake pool and let the stake pool do all the work. In return, delegators receive a stake pool token representing their percentage ownership of the pool.

After delegators deposit their staked SOL into a stake pool, validators in the stake pool will be delegated SOL according to the strategy chosen by the stake pool manager. Delegators who deposit into the stake pool receive stake pool tokens, which represent their proportional ownership of the stake pool. These stake pool tokens represent a delegator’s fractional ownership of the stake pool, and can be treated as a liquid token.

Please explain the slashing mechanism (if any).
NIL

Are there tokens on vesting schedule? If yes, what is that schedule and related vesture limitations?
No

Are any tokens allocated for specific purposes or issuance schedules (e.g. liquidity mining)?
No

Legal Profile

Is the project or the asset owned by any incorporated organization?
a. Y / N
b. Organization Name:
c. Jurisdiction:

N

In which jurisdictions was the token issued?
NIL

Was the token issued as part of regulatory process (e.g. securities offering)?
No

Was the token issued as part of fundraising process?
No

Has the project or the asset obtained any legal opinions on the regulatory standing of the token? If yes, please provide links to the relevant documentation.
NIL

Has the project or the asset had any legal interactions? If so, describe and provide documentation.
NIL

Links

  • Link to project’s white paper:
    Notion Page
    Validator White Paper

  • Link(s) to active communities related to the project:
    Discord
    Twitter

  • Link(s) to project’s documentation portal/ source code for the system(s) that interact with the proposed asset:
    Verifying the Program

  • Link(s) to audits - both procedural and Smart Contracts:
    Kudelski
    Neodyme
    Quantstamp

  • Link(s) to legal opinions:
    NIL

  • Link(s) to other legal material:
    NIL

  • Other relevant links:
    NIL

Relevant Solana Addresses

List all relevant Solana addresses here

Marketing / Campaign Material

If you have additional marketing material, recorded discussions, or collateral onboarding campaign material, link here:
Solana Podcast
AMA with Grape
AMA with Jupiter
Cryptonary Podcast

1 Like

Thanks for the application @eggpanned. A quick scan for scnSOL liquidity didn’t show up much at all. Where are the major markets for trading scnSOL<>SOL and/or scnSOL<>USDC?

1 Like

Ah thanks @eyevzz, i’ll do a quick update in my post!

3 Likes