[Asset Onboarding Application] - $SOL - Solana
Author(s): @Winfred
Tags: asset-onboarding
Asset Name: Solana
Asset Code: SOL
Submission Date: 2022-05-31
Ratification Date: 2022-06-14
Status: Active
Forum URL: https://forum.jetprotocol.io/t/asset-onboarding-application-sol-solana/977/16
It’s that Token Tuesday time of the week everyone! I hope you’re doing well.
Below, you will find the second asset to be formally proposed for onboarding through JetDAO’s Asset Onboarding process. This application serves a similar purpose as the USDC application; to confirm the DAO’s desire to have the already listed $SOL asset as a collateral type on Jet Protocol, and to continue highlighting the Asset Onboarding process.
Today marks the submission of this application, as well as the start of the Community Discussion, and Community Sentiment Polling (found at the bottom of this post). You are encouraged to discuss the pros and cons of adding this asset as a collateral to the Jet Protocol, as well as vote in the off-chain informal poll below. Off-chain polling will conclude on Monday 6-June . We will then move this vote On-Chain on Tuesday, 7-June to confirm JET token holder’s stance for using $SOL as a collateral.
As a reminder, voting On-chain for the USDC application concludes 2-June 15:00 UTC. Vote here if you have not done so yet.
Application Profile
1. What is your motivation for submitting this application?
The main motivation of this application is to be able to provide the possibility of making deposits and taking loans using SOL token in Jet Protocol. In the following summary, details will be provided as well as the CODEC analysis of it.
2. What is your association to the proposed asset?
None
3. What are the key benefits to the Jet Protocol for onboarding the asset?
Having SOL as a collateral type, Jet will be allowed to interact with the 399M circulating supply of tokens and allow the 291K active wallets to interact with Jet services.
4. What are the known limitations of the asset?
The fact that SOL price fluctuates in notable percentages, we can consider it a relatively risky collateral asset compared with e.g BTC or ETH.
Project Profile
1. 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.).
Solana (SOL) is the name of the native token of the Solana blockchain. Mainly focused on the speed and price of transactions, Solana proposes a new blockchain structure based on the high frequency Verifiable Delay Function “Proof Of History”. As its name indicates, this proof of order verification and passage of time between events, together with its Tower BFT (Byzantine Fault Tolerance) consensus mechanism, place Solana at the top of the blockchain in terms of effectiveness and accessibility
2. Who are the founding members? What is their current involvement with the project?
The founding members, Anatoly Yakovenko ,Raj Gokal, Eric Williams, Greg Fitzgerald are still working on Solana Labs & Solana Foundation. The Solana Foundation helps fund ongoing development and Solana Labs remains as a core contributor to the network.
3. Please indicate the ICO date, initial price and valuation of the token and total capital raised (in USD and crypto terms).
10 PM PST on March 23 2020 until 4 AM PST on March 24 2020.
Auction Type: Dutch Auction
Dates: March 17 Deposits Open & Pre-bids start. March 23: 6 hours for live auction.
Participants: Non-US.
Starting Bid: $4/token.
Reserve Price: $0.04/token.
Minimum Bid: $100.
Supply: 8M (1.6% of the genesis block distribution)
4. How much of the capital raised via the ICO was converted into FIAT (in terms of FIAT currency and amount of tokens)?
Since the investments rounds were made through USDC / USD, the raised amount was originally Fiat.
5. What was the way of issuing and distributing the tokens? Were there pre-ICO investors?
Apr 2018. Seed Sale. 79.9M Tokens. $0.04/token. $3.1 M Raised
Jun 2018. Founding Sale, 63.1M Tokens, $0.2/token. $12.6 M Raised
Jul 2019. Validator Sale. 25.5M Tokens. $0.225/token. $5.7 M Raised
Feb 2020. Strategic Sale. 9.1M Tokens. $0.25/token. $2.3 M Raised
Mar 2020. ICO (Dutch Auction). 8M tokens. ~$0.32/token. $25.6 M Raised.
6. What is the current token distribution (project team vs. investors vs. public)?
Initial 500M genesis block tokens distribution: Investors 35,6 % / Community 33.9 % / Foundation 12.5 % / Founders 12.5 % / Grant Pool 4.6 % / Auction 1.6 % . We can say that the distribution has changed over the time and will keep changing since the projected supply for the year 2032 is ◎746,913,269.
7. Are there any fees generated by the protocol? If yes, please provide details and amounts.
Each transaction sent through the network, to be processed by the current leader validation-client and confirmed as a global state transaction, contains a transaction fee.
In an attempt to create a sustainable economy through protocol-based rewards and transaction fees, a fixed portion (initially 50%) of each transaction fee is burned, with the remaining fee going to the current leader processing the transaction.
For more information about how fees works on Solana, visit this link.
8. Is the protocol audited? By what firms? Please provide link(s) to the audit documentation.
Solana’s software architecture was audited by Kudelski in November 2019.
9. Other relevant project data or comments:
Asset Profile
1. Asset name:
SOL
2. Asset type (native/ wrapped):
Native
3. One-sentence description of the asset:
SOL is the native token of the Solana blockchain.
4. What’s the purpose of the asset within its native ecosystem?
SOL is used to pay the network fees as well as a token reward from the staking system.
5. Does the asset have any use outside of its native ecosystem (integrated protocols)?
Yes, SOL could be used as a trading asset on all the centralized exchanges and could be stored on hardware wallets. Users are also able to bridge their tokens to different blockchains.
6. Please provide all Smart Contract address.
Asset Liquidity
1. What exchange(s) support the asset?
SOL can be traded in all the exchanges.
2. Does the asset have liquidity on Serum? What is the liquidity depth (resting orders)?
Yes, SOL has liquidity on Serum.
3. Please provide 7-day asset trading history (daily aggregated trading volumes for trading pair of asset with USDC).
4. Which oracles monitor the asset? How many feeds are available?
Pyth provides data feeds to SOL.
5. How often does the asset drop significantly in price?
SOL has suffered a downside from NOV-2021 until today. The motives are attached to the bear market situation.
6. For stablecoins only : Has the asset ever lost the peg? If yes, for what reason?
N/A
7. For wrapped assets only : Which bridges are used? Are they custodial or non-custodial? Are they audited?
N/A
8. What amount of asset’s liquidity exists in the integrated protocols (if applicable)?
9. List any parties interested in taking part in liquidations for the proposed asset type.
SOL as the native asset that powers the Solana Network attracts a wide variety of parties interested in liquidations, from smaller users to institutional investors.
Key Mechanics
1. How many active addresses/ users currently hold the asset?
2. 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?
The total supply is expected to increase over time. The following chart exposes how the circulating supply has increased since august 2021.
3. Please explain the staking mechanism (if any).
Users can Stake their SOL tokens by delegating them to validators who process the transactions and thus run the network. Token holders can enjoy this financial model by sharing both profits and risks with the rest of the delegators.
4. Please explain the slashing mechanism (if any).
Yes, there exist a Slashing mechanism for Solana validators, as the “Slashing Rules” state in the Solana Documentation: “We intend to implement slashing rules which, if broken, result some amount of the offending validator’s deposited stake to be removed from circulation “
5. Are there tokens on vesting schedule? If yes, what is that schedule and related vesture limitations?
Nine-month lockup after network launched for the three pre-launched private sales. Nine-month lockup after the network launched for 12.5% of the initial supply, these tokens will vest monthly for another two years and are expected to be fully vest by January 2023.
The Grant Pool and Community Reserve, represents 38% of the initial total supply. These tokens together started to vest in small amounts since Mainnet launch. The entire allocation for these two categories was totally unlocked in Jan 2021.
6. Are any tokens allocated for specific purposes or issuance schedules (e.g. liquidity mining)?
N/A
Legal Profile
1. Is the project or the asset owned by any incorporated organization?
Yes, Solana Labs & Solana Foundation.
2. In which jurisdictions was the token issued?
San Francisco, California, US
3. Was the token issued as part of regulatory process (e.g. securities offering)?
No, SOL is not registered with the SEC as a security token.
4. Was the token issued as part of fundraising process?
Yes, there were several rounds of fundraising noted above, pre ICO. The latest fundraising round was completed in June 2021 for $314 M.
5. 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.
N/a
6. Has the project or the asset had any legal interactions? If so, describe and provide documentation.
N/a
Links
Link to project’s white paper:
Link(s) to active communities related to the project:
Link(s) to project’s documentation portal/ source code for the system(s) that interact with the proposed asset:
Link(s) to audits - both procedural and Smart Contracts:
Link(s) to legal opinions:
- N/a
Link(s) to other legal material:
Other relevant links:
List all relevant Solana addresses here:
- Yes
- No
0 voters
