Protocol Components
Last updated
Last updated
The Solomon protocol consists of two major tokens: USDv and the staked version sUSDv. The USDv token is a stablecoin that is maintained at a peg of one dollar through two-way arbitrage (see: Peg Stability Mechanism). It is the primary vehicle for entering and exiting the protocol for end-users, primarily via purchase through stablecoin liquidity pools. It can also be minted and burned by whitelisted entities as part of market making operations (see: ).
USDv can be staked to create sUSDv. The sUSDv then accrues awards which are dispersed. Rewards are dripped out to the staking contract multiple times a week. This prevents attempts to arbitrage or front-run reward distributions, keeping them smooth.
The exchange rate between USDv and sUSDv is initialized at 1. The value of sUSDv always increases. This means that when exchanging or staking USDv for sUSDv, receiving less sUSDv than USDv input is likely. This reflects the constantly increasing value of sUSDv.
Unstaking sUSDv incurs a 7 day cooldown period. At the end of the cooldown period, the user receives back all USDv initially deposited into the staking contract in addition to all reward accrued during the staking period.
Symbol: USDv
Type: SPL Token
Function: A stablecoin pegged to the USD, backed by crypto assets and derivatives.
Contract: Ex5DaKYMCN6QWFA4n67TmMwsH8MJV68RX6YXTmVM532C
Symbol: sUSDv
Type: SPL Token
Function: A staked version of USDv that accrues yield over time.
Contract: pTA4St7D5WshfLUPBXoaxn5m8e3k2ort2DVt3gUTa17