SafeOHM (SOHM) — a decentralized reserve currency protocol, based on the SOHM token. Each SOHM token is backed by a basket of assets (like BNB) in the SOHM treasury, which gives it an intrinsic value below which it cannot fall. SOHM also brings unique economic and game-theoretic dynamics to the crypto defi market.
Contents:
What is so special about SafeOHM?
SafeOHM's goal - to build a policy-driven monetary system, where SOHM token behavior is controlled at a high DAO level. The crypto project team believes that in the long term, this system can help to optimize, ensure stability and consistency so that SOHM can function as a global unit of account and currency exchange. In the short term, the developers intend to optimize the system for growth and wealth creation. Market participants have two main strategies: staking and linking. Stakers stake their SOHM tokens in exchange for more SOHM tokens, while bonders provide LP tokens in exchange for discounted SOHM tokens after a fixed vesting period.
Market participants have two main strategies:
| Staking | Stakers are betting their SOHM tokens in exchange for more SOHM tokens. |
| Bonding | Bonders provide LP tokens in exchange for discounted SOHM tokens after a fixed vesting period. |
The main benefit for stakers - the increase in supply. The protocol mints new SOHM tokens from the treasury, most of which go to the participants. Thus, the profit for the stakers will come from their balance with automatic compounding, although price risk remains an important factor. The main advantage of Bonders - price constancy. Bonds deposit capital up front and are promised a fixed income at a set point in time. This yield is expressed in SOHM, and, therefore, the bondholder's return will depend on the SOHM price at maturity.
More about the staking project
At a high level, SOHMDAO consists of a protocol-driven treasury, protocol-owned liquidity (POL), a bond mechanism and stake placement rewards, which help to drive the expansion of the offer.
Members of the management can participate in the forum and in discussions on the Discord servers in the community and DAO, respectively. Also, subscribe to other social networks:
- twitter;
- blog.
Instead of WhitePaper, the site has published another introductory document in English and Chinese. It contains general information, answers to questions and much more. The smart contract has not been audited.