Sonne Finance has been awarded a $600k grant from Optimism, with the entire amount allocated to lending, borrowing, and staking rewards within the decentralized liquidity market protocol.
OP Grant to Boost Trading Activity
Sonne Finance, a decentralized, non-custodial liquidity market protocol built on the Optimism blockchain, has been selected for a 250k OP grant.
The OP grant, which is worth $600k, will be allocated entirely to lending/borrowing and staking rewards to boost trading activity within the Sonne protocol. 40% of the funds will be used for lending activities, 40% for borrowing activities, 10% will be allocated to SONNE/USDC pool on Velodrome Finance as a bribe, and 10% to boost staking activity among sSONNE stakers.
The tokens will be distributed linearly over a period of six months. In the event that the $250k OP grant proves successful, Sonne Finance will apply for another grant.
Sonne Finance was launched on the Optimism blockchain on September 21, 2022, followed by a Liquidity Generation Event(TGE) with the goal of becoming the best liquidity market of Optimism. The protocol generates revenue by varying reserve factors for different liquidity pools when users borrow from liquidity markets.
As per the proposal, Sonne distributes all revenue it generates to SONNE stakers, creating a demand for SONNE tokens and incentivizing lending and borrowing. Stakers of the Sonne protocol receive two types of revenue (VELO and SONNE or USDC) as well as the option to choose between SONNE and USDC as their reward asset.
From protocol revenue, Sonne has distributed 1.1M SONNE, 120k USDC, and 6M VELO to its stakers as of January 24. SONNE is currently trading at $0.3185 with a market cap of more than $762 million.
What is Sonne Finance:
Sonne Finance is the first native decentralized lending protocol on Optimsim, providing financial services to individuals, institutions, and protocols. This protocol is permissionless, open-source, and serves Optimism users. The user can deposit assets, use them as collateral, and borrow against them.
By providing a ‘top-tier’ blockchain experience with the power of optimism, Sonne Finance aims to achieve organic liquidity growth and enlarge its ecosystem by attracting capital from other chains.
Learn more about Sonnie Finance:
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.
BSC NEWS is a private news network. All posts posted by this user belong 100% to bsc.news All rights are reserved to BSC NEWS for more information about BSC NEWS contact BSC NEWS HERE.