1XBit

Soteria Starting IFO on Pancake on January 21, BSC Welcoming New Era Safeguarded by Soteria

| Updated
by Andy Watson · 6 min read
Soteria Starting IFO on Pancake on January 21, BSC Welcoming New Era Safeguarded by Soteria
Photo: Shutterstock

As of January 19th, Soteria has 440 members and the capital pool size has exceeded 10, 0000 BNB.

Just ahead of its IFO we’ve talked to the Soteria project team and found out what this platform can offer to the community.

Photo: Soteria

What is Soteria?

Soteria is a community-based insurance platform on BSC that gives the power of insurance back to users. Due to the low transaction cost and fast speed of BSC, Soteria is able to make full use of these features and highly integrated with the BSC DeFi ecosystem, allowing anyone to become a member and buy cover, and greatly reducing and even diminishing the financial risk of hacks.

Soteria is completely owned by the members, which fundamentally replaces the concept of a traditional insurance company. The model encourages engagement as members receive economic incentives for participating in Risk Assessment, Claims Assessment and Governance.

Currently, there have been various cases on hacker attacks because of smart contracts vulnerabilities. To solve this problem, Soteria provides insurance for losses caused by the aforementioned issues, and protect DeFi products from risks. In Soteria, users with tokens are both profit gainers and risk bearers. They can use the tokens to determine whether to approve claims and the amount of insurance coverage.

For whom was it built? The target audience of the project

As smart contract audit could not guarantee any bugs or vulnerabilities whatsoever, and the biggest risk in the DeFi projects, such as DEX or lending, is hacking attacks by flash loan or oracle attacks recently, Soteria is aiming to become the DeFi protector on BSC and it is for all users that wish to guarantee their funds and security.

At the same time, smart contract experts and fund providers who rely on expert audit results can use the Soteria platform to conduct risk assessments on smart contracts, and guarantee the contract security by staking SOTE tokens, which can reduce the price of insurance. When the cover is sold, the risk assessor who staked the corresponding contract will receive 50% of the cover cost as a reward for risk assessment.

What does the platform brings to its users?

  • Purchase smart contract cover.
  • Contribute funds to the mutual and hold SOTE tokens.
  • Stake on smart contracts if they believe the contract is secure, and then they can earn rewards.
  • Put forward governance proposals (under construction).
  • Vote on proposals raised by the team or other members (under construction).
  • All members share risk with each other.

What are the main peculiarities of Soteria that make it unique?

Just as traditional co-insurance companies, Soteria is adopting a co-insurance model to collect funds from policyholders. In the meantime, members from the community will share risks and premium income together. The funds will be held by the community, which means the capital pool is used for insurance claims. As for the source of funds in the capital pool, it partly comes from the insurer’s purchase of token funds, while on the other hand, 50% of the funds purchased by the policyholder will be injected into the fund pool. When compensation occurs in a certain contract, the SOTE token pledged in the contract will be first destroyed to cover the compensation. If the pledged SOTE cannot fully cover the compensation, other funds in the fund pool will be used. Therefore, although users pledge SOTE for different contracts, in fact, the insurance fund pool is shared by all contracts.

However, unlike other insurance projects, Soteria’s model can promote public participation and MCR (Minimum Capital Requirement) guarantees that when a claim occurs, it can be fully paid. Thanks to the formula in the smart contract, the SOTERIA price is linked with the risk protection capital. As capital decreases, SOTE price decreases accordingly, yet it still needs to meet the minimum requirement of MCR%.

In conclusion, the value of SOTE tokens and the purchase demand will keep increasing if the platform can incentivize more users to pledge tokens, which will realise the sustainable development of the Soteria ecosystem and even protect the DeFi ecosystem along with the benefits for its users.

What are the functions of the SOTE token?

SOTE is the operating basis of Soteria mutual insurance. With SOTE, users can conduct platform governance, claims assessment, and risk assessment etc. At the same time, SOTE also represents the membership. All funds belong to all members, which means the project team has no right to move any fund. All risk & claim assessment decisions are made by members.

Claim Assessment:

  • With SOTE, users can vote on claims.
  • Vote with the consensus earns SOTE.
  • Vote fraudulently and the stake will be burned.

Governance:

  • SOTE is the voting weight in governance. Participating in voting earns SOTE.
  • Voting locks tokens from redemption & transfer for a period of time.

Risk Assessment:

  • STOE can be staked against any smart contract to lower the price of cover.
  • When purchasing cover, stakers will earn SOTE.

Cover purchase:

  • 90% of SOTE used to purchase cover is burned.
  • 10% is retained by the Member and can be used as a deposit when submitting claims

What is Wrapped SOTE? How is it possible to get it?

Soteria Mutual launched with initial 10,000,000 SOTE tokens. SOTE token is bonded tightly with the internal economics of Soteria. On one hand, SOTE price reacts to the prevailing conditions and capitalization levels. On the other hand, SOTE is distributed to reward active members for participating in risk assessment, claim assessment, and governance. Membership rights will be represented by SOTE tokens. All funds raised from token purchases belong to members. Soteria uses a Continuous Token Model, also referred to as a bonding curve, which means SOTE can be purchased and redeemed directly via the platform.

Wrapped SOTE (wSOTE) is a 1-to-1 backed token that can only be generated by wrapping genuine SOTE. SOTE can only be traded among members, wSOTE is fully tradeable but can’t be used at all within the Soteria platform.

  • 15% (1.5 million) will be used in the IFO on PancakeSwap
  • 14% (1.4 million) for DeFi partners. SOTE/wSOTE is either farmed or spent on DeFi projects in Soteria.
  • 61% (6.1 million) for future governance. In the first stage, the governance tokens can be used to help initial risk assessment for projects, review the code and stake tokens to build confidence in the security of the projects, and accordingly reduce the cover price when user purchase cover of these projects. In the second stage, advisory board will be elected by the members, and the usage of governance token will be decided by the governance process.
  • 10% (1 million) for team members and future employees.

What are the next main milestones in the roadmap of the project?

Currently, Soteria on BSC mainnet has already live. User could register membership and swap BNB for SOTE tokens. At 4 pm (UTC+8, Singapore time) of January 21, Soteria will start IFO with PancakeSwap, using CAKE-BNB pool tokens to purchase SOTE tokens.

How many members has already joined Soteria? What is the size of the fund pool?

As of January 19th, Soteria has 440 members and the capital pool size has exceeded 10, 0000 BNB, with the specific number of 10,962.01 BNB, which is equivalent to 492,906.09 US dollars. It is worth mentioning that the insurance function of PancakeSwap has started January 19th. Within 5 hours, the staked SOTE volume has exceeded the 500,000, with the exact number of 510,779.39.

Altcoin News, Blockchain News, Cryptocurrency news, News
Andy Watson
Author Andy Watson

Please check out latest news, expert comments and industry insights from Coinspeaker's contributors.

Related Articles
EarnBet