What is sodium? Sodium is an NFT Lending platform that combines the P2P and P2Pool Lending models to provide loans with good liquidity. Let’s find out what is special about this project with Weakhand in this article.
Before jumping into the article, you can learn more about some of the following projects to gain more knowledge about NFT Lending:
- What is BendDao? BendDao cryptocurrency overview
- What is NFTfi? Overview of NFTfi cryptocurrency
- What is OpenSky? OpenSky cryptocurrency overview
- What is JPEG’d? JPEG’d Cryptocurrency Overview
What is Sodium?
Overview of Sodium
Sodium is an NFT Lending platform deployed on Ethereum. By flexibly combining the two Lending models P2P and P2Pool, Sodium provides loans with good liquidity.
Participants on the Sodium platform:
- Lender (Lender): Deposit ETH into Pools on Sodium to receive interest.
- Borrower (Borrower): Using NFT as collateral, Borrower will have 2 options for loans (P2P and P2Pool). Additionally, Borrower can still enjoy the exclusive benefits of his NFT during the loan period.
Mechanism of action of Sodium
There are 2 lending models on the Sodium platform:
With the P2P Lending model it will work as follows:
Step 1: Borrower deposits NFT onto the platform as collateral and sets parameters for the loan such as: Amount of ETH you want to borrow, loan period, initial APR of the loan.
Step 2: The loan will be visible on the platform and open for up to 48 hours. Lenders providing ETH for loans are placed sequentially into the loan queue. Lenders that come in later receive higher APR but also have more risk.
For example: A loan requires 10 ETH, Lender 1 is the first to contribute to the loan with 5 ETH and lowest APR of 15%, Lender 3 is the last to contribute to the loan with 2 ETH and highest APR of 35% .
Step 3: Borrower can accept part or all of the loan and close the loan at any time before 48 hours from the time of opening the loan to receive the borrowed ETH back. This helps Borrower to adjust the amount of APR to be paid to Lender.
Step 4: Borrower can return the loan at any time before the maturity date to receive the collateral NFTs back.
Sale: Collateralized NFTs are liquidated when the borrower fails to repay the loan on time. The first person to bid now will receive the liquidated NFT, if no one bids Sodium opens an auction within 24 hours and the highest bidder at the time of the auction receives the NFT. If no bids are placed within the 24-hour liquidation auction period, the collateral will be sold to the first Lender in the loan queue.
With P2Pool Lending model: Borrowers can only borrow ETH using NFTs that support instant lending. If the amount of available liquidity is insufficient to meet the requested loan amount, Borrower may extend the loan by specifying an initial APR to request additional liquidity from peer lenders.
What is the Sodium Difference?
Receiving an increasing APR level means that the Lender’s risk of providing liquidity later also gradually increases. The risk here is that when an NFT is liquidated, the proceeds will go to the Lenders who first provided liquidity so the last Lenders may not receive their full amount.
Additionally, Zero Pass NFT holders can access interest-free loans provided by Sodium.
Core Team
Artem Borovkov : Founder
- He graduated with a bachelor’s degree in international relations from Renmin University of China.
- He joined GoLogo Technology – a media company headquartered in Beijing as CEO in September 2014.
- He moved to work at JD Mining Group – a group that provides smart solutions for cryptocurrency mining as managing director at the Central Asia branch since December 2017.
- After that, he quit his job and joined Sodium from December 2021. Currently, he is Founder at Sodium.
Alex Sherr : Co Founder
- He graduated with a bachelor’s degree in Law, International Political Economy from Beijing University.
- He has worked at Capital Group as Business Research Associate since April 2018.
- In March 2018, he moved to work at CNN as a Freelance Travel Writer.
- After that, he joined Sodium as Co Founder from November 2021.
Pierre Sauer : Co Founder & Marketing Strategy
- He has worked at Hintsteiner GmbH as CMO since May 2017.
- After that, he quit his job and joined Blue Alpaca Group Technology and is currently CEO at Blue Alpaca Group Technology.
- In December 2021, he joined Sodium and is currently Marketing Strategy at Sodium.
Investor
Update…
Tokenomics
Update…
Information Channel of Sodium Project
- Website: https://sodium.fi/
- Twitter: https://twitter.com/Sodium_fi
- Medium: https://sodiumofficial.medium.com/
- Discord:
summary
Sodium offers a new lending solution for users with a combination of P2P and P2Pool Lending models along with increasing APR rates that incentivize lenders to provide liquidity. Hopefully the information I provide in this article has helped people gain interesting knowledge about Sodium.