SODADAI (transferable ERC-20 token):
This smart contract mints and automatically distributes SODADAI between lenders who have provided DAI ◈ to the credit pool smart contract in order to earn interest on SODA. Also it automatically burns SODADAI after the lender withdraws their DAI ◈ from the credit pool smart contract.
Lending:
Being a lender on SODA is similar to purchasing shares in a company, and your assets (SODADAO tokens) earn you weekly interest depending on your share of the total assets. SODA uses the pool model for aggregating cryptoassets in one place. There is no need to wait for matchmaking to happen between borrower and lender (P2P). This text focuses on the lending and gives guidance from the lender’s perspective.
Lending Procedure:
In order to earn interest the lender provides their cryptoassets to the credit pool smart contract. Compatible cryptoassets for lending on SODA can be found on the website https://www.soda.network or in the source code of the lending pool smart contract on GitHub: https://github.com/sodacrypto. Еarly SODA versions will support DAI and USDC.
Lent liquidity is locked up for 60 days.
Anyone is able to provide their funds to the credit pool smart contract and start receiving a share of the DAO's interest. When the lender provides their cryptoassets to the credit pool smart contract, they receive SODADAO tokens that are used for: 1) Setting the lender’s share in the DAO's interest; 2) Distributing the DAO's interest on-chain between lenders.
Thus, SODADAO tokens set the lender’s stake in the credit pool and their equivalent interest share. For example, if the lender has provided 10,000 DAI to the credit pool smart contract and the total amount of DAI in the credit pool is 100,000 DAI; 10% new SODADAO tokens will be minted and sent to the lender and they will start to receive 10% of the DAO’s interest.
70% of the DAO’s interest is distributed between lenders respective to the capital they have provided. 30% of the DAO’s interest goes into the development fund via the SODA Foundation. The interest is distributed on a weekly basis through smart contracts with public on-chain proofs of transactions for lenders.
To convert SODADAO tokens back to the lender’s cryptoassets, the lender sends SODADAO tokens to the credit pool smart contract. Following that, they receive the lent cryptoassets to the same Ethereum-address they used to deposit them. Since the lent liquidity is locked up for 60 days, the conversion can be conducted on the 61st day after receiving SODADAO tokens. Until that, the conversion function is blocked.