Hi everyone, I’m eggpanned, co founder of Socean Finance! 
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The Socean team have been huge fans of Jet Protocol from the very beginning and I’m here to put up a proposal to add our stake pool token scnSOL as collateral.
We’re so excited and would love to collaborate with Jet Protocol to increase composability and decentralisation in the Solana ecosystem! Feel free to ask any questions, I’ll be happy to discuss and answer them.
Proposal:
Detailed description of the asset and the reason(s) the Jet Community should consider onboarding it.
Socean Finance is a stake pool that launched on mainnet on the 9th of September 2021. A stake pool allows users to deposit SOL and get a staked SOL liquid token (scnSOL), which can be redeemed for staked SOL at any time. The stake pool token represents a proportion of the SOL that is held in the pool. For example, if there were 120 scnSOL in circulation, and 240 SOL in the pool, 1 scnSOL = 2 SOL. Because staking SOL gives staking rewards, the amount of SOL in the pool continuously increases, and thus scnSOL continuously appreciates in value relative to SOL at ~7% APY.
Since launch, Socean Finance has captured $100M USD in TVL, all of which has been organic, without liquidity mining incentives. We have been actively integrating with other protocols in the Solana ecosystem such as Orca, Saber, and Atrix Finance.
Collateral Asset Profile
- Collateral ticker: scnSOL
- Collateral short description: scnSOL is Socean’s stake pool token which can be redeemed at any time for staked SOL.
- Total in circulation: ~611.2k scnSOL, ~100M USD
Why list scnSOL?
In general, liquid staked SOL is an excellent asset for collateral on Jet due to its price stability and slow and consistent appreciation.
The Socean program guarantees that scnSOL can always be redeemed for at least 1 SOL + any staking rewards that have accumulated over time. Thus, a positive collateralization ratio can be maintained. Traders who hold long SOL positions can enjoy the risk-free appreciation of scnSOL instead: this can be significant over the course of months or when holding leveraged positions.
In addition, there are additional advantages of scnSOL:
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High APY performance. This is useful for traders who want to long SOL position.
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High demand for lending. On our end, we have many users who have indicated they are interested to lend and borrow on their scnSOL.
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Low protocol risk. We have had multiple audits by different independent audit firms.
Why Socean Finance?
There’s four reasons why we believe Socean Finance (and by extension scnSOL) aligns with Jet Protocol’s ethos and values to create a richer Solana decentralised finance ecosystem.
First, we are builders at heart. We have executed at breakneck pace with a small team. This is due to the fact, humbly, that the Socean team are some of the best technical developers in the space. Our reputation as “the most sophisticated stake pool on Solana’’ is not unfounded. The team has the closest relationship to the Solana reference implementation as the team has contributed 25% of the codebase of the Solana reference program and therefore understands the codebase better than most others in the space.
Second, we believe in transparency. We will never hide who we stake with or refuse to disclose our holdings. We have never cut backroom deals with validators and will never cut any deals - we are fully committed to publishing who and how we stake with. We have a real-time dashboard to monitor where and with whom we are staking your $SOL.
Third, we refuse to compromise on decentralisation. We hold no conflict of interest by owning validators; and do not force our validators to go through complicated onboarding processes and give up control of their stake account. As such, we do not have any preferred set of validators - our delegation algorithm selects validators based on good performance.
Fourth, our mission and values align with Jet Protocol. Our mission is to increase value in the world by building decentralised, positive-sum financial products. We believe that this would be the start of a long-term partnership with Jet Protocol as they continue to innovate secure, never-before-seen DeFi primitives on Solana, but also bring forth these tools and instruments to the real world to create an impact on finance globally.
Use Cases:
- 7% risk-free yield on SOL
- scnSOL/USDC and scnSOL/SOL farms on Orca
- scnSOL/USDC and scnSOL farms on Saber
- scnSOL/USDC, scnSOL/SOL, scnSOL/BTC, scnSOL/ETH farms on Atrix
- Further integrations with other Solana Defi protocols to come
Risks:
Technical Risk: Multiple versions of the Socean stake pool program have been fully audited by different independent audit firms, to mitigate every chance that a bug in the stake pool program could be exploited to steal users’ funds.
Staking Loss Risk: When slashing is implemented on Solana, the price of scnSOL could fall relative to SOL if too much staked SOL is slashed. Socean mitigates this risk by distributing stake over a large number of different validators such that the slashing of one or two validators will not negatively affect the total staking return (and thus the price of scnSOL).
Liquidity Risk: There is currently ~$60M USD in scnSOL-SOL liquidity pools across Orca and Saber, with more liquidity expected to follow when Socean launches its governance token.
Relevant Links:
Website: https://www.socean.fi/
Whitepaper: Litepaper - Socean
Excited for launching native token to support