In this article, we’ll go over the SafeOHM project and the SOHM token. What is SafeOHM (SOHM)? What is the SafeOHM token? What is the SOHM token?
What exactly is SOHM?
SafeOHM (SOHM) is a decentralized reserve money mechanism that is built around the SOHM token. Each SOHM token is backed by a basket of assets (for example, BNB) in the SOHM treasury, providing it with an intrinsic value that cannot be depreciated. Through staking and bonding, SOHM also introduces novel economic and game-theoretic dynamics into the market.
SOHM is a cross of SafeMoon and OHM, a decentralized financial reserve protocol that provides compounding interest via its community-owned and protected treasury. $SOHM has intrinsic value since it is backed by BNB in the treasury.
Through staking, bonding, and selling penalties, $SOHM also presents a superior (3,3) game theory.
What is the purpose of SOHM?
Our goal is to create a policy-controlled currency system in which the DAO has a high level of control over the SOHM token’s behavior. We believe that in the long run, this approach can be used to optimize for stability and consistency, allowing SOHM to act as a global unit of account and medium of exchange currency. We seek to optimize the system for growth and wealth creation in the short run.
How do I get involved in SOHM?
Market participants might choose between two strategies: staking and bonding. Stakers stake their SOHM tokens in exchange for extra SOHM tokens, whilst bonders trade LP tokens for discounted SOHM tokens after a set vesting period.
Governance participants can participate in conversations on our forum and on our community and DAO discord servers, respectively. We are always searching for new members of the community to contribute!
What are the advantages of SOHM for you?
The key advantage for stakeholders is increased supply. The protocol creates new SOHM tokens from the treasury, with the bulk of them allocated to stakers. As a result, the benefit for investors will come from their auto-compounding balances, albeit price exposure is still an important concern. Stakers would profit if the increase in token balance outpaced the probable decline in price (because of inflation).
The key advantage for bondholders is price constancy. Bonders invest capital upfront and are promised a specified return at a specific moment in time; that return is in SOHM, so the bonder’s profit is determined by the SOHM price when the bond matures. Bondholders profit from growing or stable SOHM prices.
Selling will also affect the price of SOHM, lowering the revenue of the Bond. When someone sells SOHM, the system will levy a 10% transaction fee and invest in bonds within one hour in order to raise bond prices.
SOHM was created by whom?
SOHM was created by a distributed pseudonymous team and is supported by the SOHM DAO community.
SOHM is run by whom?
Nobody. SOHM is DAO-governed. All choices are determined by token holders through snapshot voting after being formed by community members on the forum.
SOHM’s key value accrual approach is staking. Stakers stake their SOHM to gain rebase rewards on the SOHM website. The rebase incentives are derived from bond sales proceeds and might vary depending on the number of SOHM invested in the protocol and the reward rate set by monetary policy.
Staking is a long-term, passive approach. The rise in your SOHM stake translates into a constantly declining cost basis that eventually converges on zero. This means that even if the market price of SOHM falls below your initial purchase price if you stake for a long enough period of time, the increase in your staked SOHM balance should eventually overtake the price fall.
When you stake, you secure SOHM and receive an equivalent quantity of SOHM in return. At the end of each epoch, your SOHM balance is automatically rebased. SOHM is a transferrable protocol that can be combined with other DeFi protocols.
When you unstake, you burn SOHM and receive a corresponding amount of SOHM. Unstacking means that the user will miss out on the next rebase payout. It should be noted that the forfeited reward only applies to the amount that was not staked; the remaining staked SOHM (if any) will continue to receive rebase incentives.
SOHM’s secondary value accrual technique is bonding. It enables SOHM to purchase its own liquidity and other reserve assets, such as BNB, by selling SOHM at a loss in exchange for these assets. The protocol quotes the bonder on conditions such as the bond price, the number of SOHM tokens the bonder is entitled to, and the vesting term. The bonder can collect a portion of the incentives (SOHM tokens) as they vest, and the whole amount will be claimable at the conclusion of the vesting term.
Bonding is a high-energy, short-term tactic. Bond discounts are more or less unpredictable due to the secondary bond market’s price discovery mechanism.
As a result, bonding is regarded as a more active investment method that must be regularly watched in order to be more profitable than staking.
SOHM can amass its own liquidity through bonding. We refer to our own liquidity as POL. More POL ensures that our trading pools always have locked exit liquidity to assist market operations and protect token holders. Since SOHM has become its own market, in addition to providing extra certainty for SOHM investors, the protocol has accrued an increasing amount of revenue via LP incentives, reinforcing our treasury.
The First Network State
This may appear to be contrary to our currency’s goals, but we assure you that it is not. SOHM can be modified to optimize for a variety of factors. The primary tradeoff is between volatility and profitability and stability and consistency. Growth comes with instability and profit, and this is what we want early on.
SOHM should perform well as a reliable asset with tight regulation and size. Pressures should be able to stabilize at a non-intrinsic value. SOHM has the capacity to serve as a wealth-generation machine with loose policy, regardless of scale. The token’s market premium measures the game’s positive total; all extrinsic value represents fresh money created.
The Alpha State
The initial network includes a one-way treasury (no money comes out), the bonding contract (which increases supply and profits), and the staking contract (where profits are distributed).
The original policy states are as follows:
The BCV varies depending on the type of bond. The Policy team tunes it on a regular basis to fulfil the protocol goals. For example, if the protocol wishes to accumulate more liquidity in its treasury, it can reduce the BCV for liquidity bonds in order to enhance bond capacity. Visit the SOHM Policy Dune page to see the BCV objectives for various bond kinds.
Bond vesting period
For all bond kinds, it is set at 144,000 BscScan blocks or approximately five days.
The spread of SOHM
Every time someone buys a bond, the money goes to the SOHM treasury. The same number of SOHM will be coined and allocated to three parties:
Bonder: During the vesting period, the bond purchaser will receive the quoted amount of SOHM in a linear fashion.
The bonder receives the same amount of SOHM as the DAO. This is the profit of the DAO.
Stakers: After accounting for the SOHM distributed to the bonder and the DAO, the remainder will be dispersed to all protocol stakeholders.
SOHM includes policy constants that allow us to tune the system.
We can use the BCV to scale the rate at which bond premiums rise. A greater BCV indicates a smaller bonder discount and more protocol profit. A lower BCV equals a bigger bonder discount and less protocol profit.
The vesting duration regulates how long bonds take to become completely redeemable. Longer time horizons simply lower inflation and bond demand.
The DCV allows adjusting the protocol buy pressure. A higher DCV indicates increased buy pressure and higher deflation. A lower DCV indicates a weaker floor and less buy pressure.
The sole treasury variable is profit allocation. This gives us the ability to choose who benefits from the protocol.
The staking contract contains no variables. SOHM and SOHM are always 1:1 redeemable, and profits are always dispersed equally via rebase.
If you wish to acquire SOHM on PancakeSwap or any other DEX, make sure the token address matches the one mentioned above. Never purchase a SOHM token whose address you cannot check. Furthermore, if you know the SOHM token address, you can view a list of holdings and various exchanges that provide SOHM liquidity on BscScan. SOHM contracts are listed below by version, with the most recent version being the presently active contract.
The current price of SafeOHM is $4,752.65 USD, with a 24-hour trading volume not provided. Our SOHM to USD pricing is updated in real-time. In the last 24 hours, SafeOHM has dropped,552.55 percent. The current position on CoinMarketCap is #9006, with a live market cap of not provided. The circulating supply is depleted, and the maximum supply is depleted.
SOHM cryptocurrency is now available on Binance’s mainnet. The SOHM token address
Be cautious not to buy any other token with a different smart contract than this one (as this can be easily faked). We strongly suggest that you remain cautious and safe throughout the launch. Don’t allow your emotions to get the best of you.
The information on this page is not intended to be financial advice; rather, it is designed for GENERAL INFORMATION PURPOSES ONLY. Cryptocurrency trading is HIGHLY RISKY. Make certain that you are aware of these hazards and that you are accountable for what you do with your money.
Thank you for reading my article. I hope you found it interesting and useful. Let me know your thoughts about the token in the comment section below.