Tokenomics
Tokenomics of a protocol are of critical importance for the long term success of RIA, and for this reason a lot of thought and consideration have gone into the structure of Soteria's tokenomics. However before going into the tokenomics it is important to understand the goal of the protocol itself.
Protocol Goals
- Increase the treasury in a manner that does not negatively effect the current users and participants within the Soteria protocol
- Increase treasury multiplier giving users access to greater liquidity and increased backing.
- Be as decentralized as possible and do not gate keep any functionality from users.
Distribution
- Elastic supply
- Total Tokens: 1,000,000 RIA
- Team Tokens: 200,000 RIA
- Initial Liquidity: 300,000 RIA
- Treasury Reserves: 500,000 RIA
Minting and Redeeming
Minting: After the initial launch phase anyone will be able to mint new tokens. This can come in two forms. The first is releasing already existing tokens into the circulating supply by buying them from the treasury at the current multipler. The second is to mint tokens directly into the treasury and sell them on the open market. However in the case that the latter is choosen if the action does not increase the treaury multipler the transaction will revert and no tokens will be minted.
Redeeming: Just as above users can redeem RIA tokens for their underlying weth (minus a small fee), or users can buy back RIA off of the open market. Just like with minting though, if this action does not increase the multipler value then it will be reverted.
Fees
- Mint, redeemption, and borrow fee: 1%
- borrow fee is also applied to when users add additional collateral
- Buy / Sell fee: 0%.
Users who sell $RIA for WETH on the open market through the treasury, and are thus increasing the multipler, receive a small fee for doing so. The fee is 10% of the profit generated from the arbitrage opportunity. This helps the protocol keep the market price close to the multipler allowing for users to create greater leverage if they so desire, and help them get close to 100% LTV relative to the dollar cost of buying $RIA.