Blockchain News
Sonne Finance has Been Selected for the 250k OP Grant Worth $600k
By
Soumen Datta
March 7, 2023
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:
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Author
Soumen Datta
Soumen Datta
Soumen is an experienced writer in cryptocurrencies, DeFi, NFTs, and GameFi. He has been analyzing the space for the last several years and believes there is a lot of potential with blockchain technology, even though we are still at an early stage. In his spare time, Soumen enjoys playing his guitar and singing along. Soumen holds bags in BTC, ETH, BNB, MATIC, and ADA.
