Soar: Getting started.
Welcome! With this article I intend to help new users and investors understand the basics of the Soar.fi ecosystem and its native token, $SOAR. I’ll focus primarily on the frictionless yield mechanism of the token and give a quick overview of the project for those just starting to read on soar. I’ll also leave a list of useful links at the end of the article. Lets get to it!
Now, we’ll go through what the project as a whole is trying to accomplish, but my guess is that if you’re reading this you are either thinking about investing in SOAR or you just bought the token and wanna quickly learn about the yield generating mechanism, so I’ll explain that first.
Tokenomics and Frictionless Yield Mechanism.
As you can see on the image below, there is a total supply of 10 million tokens. Some were airdroped to users who had been rugged, some went into the liquidity pool.
What’s important to us is that $SOAR is a non-inflationary asset. This simply means that there will never be more than 10 million tokens in circulation. This is important because of the frictionless yield generation mechanism of the contract, which applies a 1% fee on every transfer and distributes it directly to holders on their wallets. You read that right. You buy the token, you hold it in your wallet, and for every transaction made (this includes moving your soar from wallet to wallet) you will receive a portion of the fee in correlation to the amount of $SOAR you hold. No need for staking. As long as the $SOAR is not kept on an exchange, any Eth adress will work, regardless of the wallet you are using.
Now the question can be posed: “how much yield does this generate?”
Well, it depends on two things: A)how much $SOAR you hold (the more the better), and B) How much the asset is traded. The more transaction volume, the bigger the reward for holders. If 100 tokens are transacted on a given time period, then on that time period 1 token will be redistributed among holders. Now imagine on that same time period a million tokens are transacted. Then 10k tokens would be distributed. So as the project grows and people trade it more, holders benefit more and more from the yield mechanism. Just to give an example, today (April 5th, 2021), 5481 SOAR were distributed, but this changes every day.
If you want to see how much APY you are getting on your SOAR at any given time I recommend checking out the dashboard: https://observer.soar.fi/dashboard In there one is able to check a lot of useful information such as price, daily volume, and transaction history. To check your current APY simply go to the “Yield Stats” section.
There is something else to take note of. When swaping the token on Uniswap, because of the frictionless mechanism, it is necessary to use a round number of tokens and increase slippage to 2%. With the BSC integration right around the corner, you also need to know that this mechanism won’t work on this chain. This is to facilitate swapping and boost adoption of the project. So If you want to swing trade the asset, it makes sense to do it on BSC, considering there are no gas fees and it is easier to execute. If you want to simply buy and hold, it may be wise to keep them in your ERC-20 address.
If I may give my own opinion, I think this is in tune with the nature of the project in a way. Soar is not a pump and dump type project, not a trade oportunity, but an investment one. The devs are working hard to bring out a lot of products. The yield generating mechanism alone is incentive enough to hold, and makes holding the asset more profitable than trading it a lot of the time.
So now that we’ve talked about the most immediate concern that an investor may face, let’s take some time to talk about the project as a whole.
Soar. fi’s vision.
Soar.fi is an expanding ecosystem of products that aims to solve three fundamental problems that currently exist within the Defi space:
— The leftover ETH beneath failed projects or which stopped delivering.
— No system for projects to merge their liquidity.
— No easy way for users to swap their liquidity from one pool to another.
Basically, SOAR.Fi is a decentralized framework for liquidity control. If you are new to Defi, this might seem a bit confusing, so i’ll explain it in simpler terms. Decentralized exchanges don’t use the traditional order book model that traditional exchanges use, where there are market makers constantly providing liquidity for users. They rely on liquidity pools. The funds held in the liquidity pools are provided by users who earn passive income on their deposit through trading fees based on the percentage of the liquidity pool that they provide. What’s important here is that in Defi there are liquidity pools underlying every project, they play a fundamental role and provide a basic strategy for any investor trying to increase their token holdings. Combine this with the recent surge of rug pulls and it should be apparent then that liquidity control is an all-important subject. Soar expects “to accumulate residual liquidity across Uniswap, existing beneath projects with no current plans or active development, and become an ever-increasing ecosystem of users and liquidity.”
To achieve this, Soar.fi has already lauched their core product, the Liquidity Migrator, which is a contract that allows LP token holders to seamlessly migrate their LPs’ liquidity to SOAR. Once again, I’ll try to explain the basics of it in simpler terms for those of you that are new to Defi: When an investor stakes in a pool (let’s say on the xtoken-Eth pair, as an example), an LP token is created, representing the part of the pool that the investor owns. Soar’s Liquidity migrator works by reedeming the Eth and the xtokens that were in the pool, burning the LP tokens. This way, the ETH is added as liquidity in the SOAR-ETH Liquidity Pool, after buying the SOAR tokens needed to pair the ETH. This process generates SOAR LP tokens. Thus, the investor has transferred liquidity from x-project to SOAR. This applies the 1% fee, which is spread to all $SOAR holders. This process is simpler and cheaper than doing it by hand, it is done in only one transaction so it costs less fees.
Now the Liquidity Migrator is Soar’s main product, but it isn’t the only one. I’m now going to give you just a quick glimpse of other products that are soon to come.
SoarSwap: SoarSwap is a decentralized exchange with a novel reflective mechanism for fee accumulation and distribution among liquidity providers. This will be the place to exchange all tokens launched on Soar’s NovaPAD. At the time of writing, this product is done and audited.
SOARX: SOARX will be the utility token of the SOAR ecosystem and everything that revolves around the NovaPad. To farm and own SOARX, which gives you the right to vote & participate in NovaPAD sales, you need to provide SOAR/ETH liquidity.
NovaPAD: Will be a framework to launch community curated projects comparable to Polkastarter, where users decide by voting with SOARX tokens the projects launching on the platform.
SOAR Cross-Chain (BSC) Implementation: Implementing BSC compatibility for SOAR in the pursuit of expanding the ecosystem. Coming very soon.
Useful links and closing thoughts: This article hopes to be an introduction to Soar.fi, and is by no means a thorough review of the ecosystem. To truly familiarize yourself with the novelty that this project will bring to the Defi space, I encourage you to dive a bit deeper. Below you will find a list of links to keep investigating and some useful information.
0xBae5F2D8a1299E5c4963eaff3312399253f27Ccb -Contract Address.
(2% slippage and round numbers are needed to buy or sell SOAR due to the frictionless reward mechanism).
https://migrate.soar.fi/ -Link to the Liquidity Migrator.
https://research.soar.fi/ -On this site you will find official information about the producs.
https://www.stakingrewards.com/journal/interview-with-the-soar-fi-team Q&A with Soar’s creator.
https://walitz.medium.com/why-and-how-soar-fi-liquidity-migrator-works-a47b50d9d6c -This article provides an in-depth review of the ecosystem’s products.
https://www.coingecko.com/en/coins/soar -Coingecko page.
https://soar.fi/ -Official Site.
https://twitter.com/Soar_Fi -Soar.fi’s Twitter.
https://soar-fi.medium.com/ -Soar.fi’s Medium page.
http://observer.soar.fi/ -Again, this is the link to the observer.
https://t.me/SoarFi -Community Telegram.
Lastly, I hope you enjoyed the article and found it informative. Please feel free to reach out to me if you have any questions .You can contact me on https://t.me/tomoandres.
Cheers!
Tommypeepo.
