SODA is a DAO where you can borrow up to 1,000 DAI ◈ within 15 minutes with a fixed interest rate using Bitcoin as a collateral.
Every Bitcoin HODLer can get a loan on SODA without KYC or invasive and long winded processes.
First things first: unlike other closed lending businesses, interest on SODA is distributed between SODADAO token holders (70% of interest) and the SODA Foundation (30% of interest). Second things second: every loan is collateralized with Bitcoins (140% of the loan amount in DAI ◈ equivalent). Third things third: anyone is able to provide their cryptoassets to the credit pool smart contract and start receiving part of the DAO's interest. When you provide your cryptoassets to the credit pool, you recieve a SODADAO token, which is used to: 1) set the user's share in the DAO's interest; 2) distribute the DAO's interest on-chain.
Interest rates on SODA are ALWAYS 30% LOWER than the market weighted average. Our partners LoanScan.io are calculating SOBR (Secured On-demand Borrowing Rate). SODA smart contract sets the interest rate 30% lower based on the current SOBR date. As a result, SODA users get to benefit from the best interest rates possible.
Interest rates on SODA are ALWAYS 30% LOWER than the market weighted average. Current interest rates to borrow on SODA are:
DAI: 7.0% APR USDC: To be added soon
Bitcoins for providing them as a collateral (by converting BTC to SODABTC: ERC20 token of Bitcoin) and MetaMask to get SODABTC and a loan in DAI ◈.
Send DAI to the smart contract. You will need to pay back the same DAI ◈ amount to what you have borrowed.
If you have sent more than you should, the smart contract will automatically send you back the excess.
You are paying interest rate to lenders and to SODA Foundation. Once you’ve sent your collateral in Bitcoins and received a loan in SODA, the smart contract will transfer the interest amount from your collateral in Bitcoins (SODABTC).
For example: your loan amount is $10,000 in SODA, your collateral in Bitcoins is 1.4 BTC ($14,000), you have transferred your SODABTC as a collateral to the smart contract; if your loan’s interest rate is 1% / month and you’ve taken out a loan of $10,000 for 2 months, then the smart contract will automatically take $200 in SODABTC (2% of the loan amount if the loan period is 2 months) after you deposit your collateral.
Firstly, when you need cash to pay the bills and still want continue HODL’ing BTC, get a cryptoloan, exchange it to fiat money and continue to hold your Bitcoins. Secondly, if you are an altcoin trader, don’t let the bull market arrive and see your your beloved altcoins moon without you. Use SODA to jump on the train and enjoy your winnings without selling your BTC. Thirdly, use it as a leverage or to short cryptoassets.
Market trends are not endless. Win big with SODA.
Yes, you can. Send the amount you want to repay to the smart contract.
The amount of the debt will be automatically lowered after the transaction is confirmed.
When the collateral’s (Bitcoins) price falls to 110% of the loan’s DAI ◈ amount it gets liquidated. The minimum collateral’s DAI ◈ equivalent in Bitcoin is 140% from the loan amount.
Anyone is able to provide their funds to the credit pool smart contract and start receiving a part of the DAO's interest. When you provide your crypto assets
to the credit pool, you recieve a SODADAO token which is used to:
1) set user's share in the DAO's interest;
2) distribute the DAO's interest on-chain
70% of the SODA DAO interest is distributed weekly between lenders. There is no need to wait for matchmaking between borrower and lender. After the user provides their crypto assets to the credit pool (currently available: DAI ◈) they receive SODADAO tokens.
This token sets a lender’s stake in the credit pool and their equivalent profit share. For example, if a user has provided 10,000 DAI to the credit pool smart contract and the total amount of DAI is now 100,000; then 10% new SODADAO tokens will be minted for that user and they will be receiving 10% of the DAOs interest. Lended liquidity is locked up for 60 days.