Jet Protocol x Socean Finance

Hi everyone, I’m eggpanned, co founder of Socean Finance! :fried_egg: :

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:

  1. High APY performance. This is useful for traders who want to long SOL position.

  2. High demand for lending. On our end, we have many users who have indicated they are interested to lend and borrow on their scnSOL.

  3. 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

21 Likes

Additional Links:
Stake pool documentation: Stake Pool Introduction | Solana Program Library Docs

5 Likes

It seems to me that validators need to have market pressures in order for a healthy system to emerge. While all liquid staking pools are good for Solana’s decentralization, Socean’s dynamic validator selection is a unique tool to incentivize new, decentralized validators. If once a validator is whitelisted they’re in, incentives may become warped by closed-door politics.

By listing scnSOL as collateral, Jet is directly addressing the number one criticism of Solana by true proponents of distributed ledger technology’s decentralizing potential: that Solana is not adequately decentralized.

Don’t take it from me—Anatoly himself argues that liquid stake pools are a top concern in this fight. Given Jet’s role as Solana’s AAVE, it seems only right that Jet would help steward decentralization wherever possible. Socean in the waters and Jet in the skies; Solana can’t lose.

7 Likes

I think it’s worthwhile to do

3 Likes

I support this proposal! This is great way to further Solana’s decentralization making it censorship resistant. Socean’s philosophy on using an unbiased algorithmic validator delegation allows it to take into account network health while maximizing staking rewards is a win-win for Solana and it’s users. Adding scnSOL as collateral would encourage more staking through use cases for it’s liquid staking token. It’s a win-win-win! :handshake:

3 Likes

I’d support it as well, and welcome a diversity in SPT

3 Likes

I like using Socean, and it’s good to support a variety of staked SOL platforms so that staking decisions don’t get too concentrated.

2 Likes

Hi Jet Protocol, what else is needed to take this forward… Adding scnSOL as collateral will be a big step forward to diversifying the staked platforms, so users have more choices.

3 Likes

This is the great, sirr!! can’t wait for launch and will support on every step.

3 Likes

I am Socean Lover and I love Socean :grin: Excited for launching native token to support

3 Likes

I am so excited to be a part of this project. Community of this project become my second family. Small step for a man, giant step for crypto

2 Likes

Well, I’m here to say that I love using Socean and can’t wait anymore for the launch!

2 Likes

Hey!)
I’m huge fan of Socean so I strongly support it! :slight_smile:
It will be a huge step!

1 Like

Hey!
That would be awesome! Love Socean and this partnership will benefit Jet for sure!
Big projects - Big partnership!
100% pro

Welcome to all the first time posters! I’m excited to have you in the Jet forums. We have a number of collateral proposals currently up for review. Any quantitative information you think is important to be aware of will be helpful for the Jet community to make it’s choice once token voting is enabled.

When the markets are falling, Socean is the perfect solution for saving and increasing your capital! When markets go up, Socean goes up faster. No kidding!
A “no brain” idea
I fully support this suggestion

Socean, the one who will change the rules of the game defi, I am excited about Socean and his community, glad to be part of this family!

heavy in favour of this, got my vote,cheers

I like Socean and i support this proposal! I think interaction Jet Protocol with Socean and adding scnSOL great way to get ahead

seems like a nice project. design is also realy pleasant