Greetings, Ser!
It’s been a while since our last Medium update on Sodium. Since we’re about to launch, it might be the perfect time to loop you in and explain what we’ve been busy with over the last couple months.
Without a doubt, the NFT market has seen better times, and perhaps not surprisingly, the nay-sayers are back again. Despite all the fud, we managed to find a quiet corner. and took some time to reflect on the core problems NFT liquidity protocols face, explore potential shortcomings of our own product, and work out a plan of action to solve these problems.
Now, we can proudly say that Sodium is back and stronger than ever. We have changed the protocol design, extended our team, and gained even more WAGMI karma points.
Why redesign the protocol?
Sodium 1.0 was designed to be a fully ML price-estimation-driven NFT liquidity platform that provided instant liquidity. The Fair Price Engine we developed is truly remarkable, as it’s 94% accurate for certain collections — but when we tried to apply this mechanic to a greater variety of collections, accuracy decreased.
The FPE dilemma in a nutshell:
> High accuracy — limited number of collections
> High variety — limited accuracy of estimations
We didn’t want to choose — we wanted to build the ultimate solution.
As a first step, we formulated a new set of requirements for our platform redesign:
☞ Accessible to as many collections as possible
☞ Fair collateral evaluation
☞ Instant liquidity
☞ Efficient liquidity price discovery
☞ Borrowers to retain the NFT utility
☞ No liquidation during the loan term
☞ Optimize complex UX
Was it doable? Could we really build something that met all these requirements? (Spoiler alert: the answer is YES)
NFT Liquidity 2.0
Sodium is solving what we see to be crucial problems hindering current NFT lending platforms, with our all-new Hybrid Liquidity design.
By combining P2Peer flexibility with P2Pool efficiency, Sodium’s new platform design creates a competitive lending market — resulting in increased efficiency, lower interest, and higher collateral valuation.
⇢ As a Borrower:
Access instant liquidity for more than 100 collections while keeping control of the NFT's utility. Sodium’s smart wallet design enables silky smooth connection to Twitter PFP, Collabland, P2E, airdrops, and literally any other dApp during the whole loan duration.
Furthermore, enjoy the highest collateral valuation in the entire industry — your NFT’s rarity, traits, and other influential factors can all be priced in with Sodium’s unique collateral valuation mechanic.
⇢ As a Lender:
Provide liquidity on individual terms, and create your own risk/reward strategies or combine them to maximize your gains. Act as a Lender on the peer market and discover all sorts of unique investment opportunities; provide liquidity to one or multiple collections via automated pool markets, or create a custom lending pool to fill existing demand. With Sodium, you decide when and how your money is allocated — contribute to a loan manually or through your personal liquidity pool.
⇢ As a Creator:
Initiate a liquidity market for your collection to create an easy-HODL environment for your community by allowing them to release liquidity while decreasing secondary market sell pressure.
Sodium’s self-balancing hybrid design is key in solving complex NFT liquidity puzzles. To date, there is nothing more flexible or efficient on the market.
What’s Next
We are live on the Goerli test-net — a huge thanks to our 30+ UX/UI testers that helped by whip the platform into shape by giving tons of feedback, and of course, this all wouldn’t be possible without our devs. When Sodium > Summer Holidays for the people on your team, you know that something good is in the works…
☞ Sodium Platform Public Launch - September 2022 [🚨]
For further info, including more technical details, keep your eyes glued to our Twitter page over the next few days!
Your support in spreading the Sodium word is highly appreciated.
Degens — eager to push the launch with us? Simply reach out, and we will be more than happy to onboard you personally.
