Sake Finance - PufETH Lending and Borrowing pool

Incentives
1

Protocol Description:

Sake Finance is an integrated liquidity protocol on Soneium and has plans to go multi-chain. Sake is pioneering a new era of decentralized finance, where different modules work together seamlessly to provide the smoothest user experience.

Protocol Overview:

Lending and Borrowing:

  1. Our lending and borrowing protocol is the backbone of the Sake ecosystem. It offers a diverse range of assets and provides the main source of liquidity that drives the rest of the protocol. It also implements solutions such as E-Mode to enhance portfolio return and efficiency.

Overcollateralized Stablecoin:

  1. The second piece of the puzzle is our overcollateralized stablecoin, securely backed by yield-bearing tokens of the lending protocol. This stablecoin offers not only a reliable store of value but also extreme composability, enabling users to generate superior returns across our partner protocols.

Leveraged Liquidity Strategies (LLS):

  1. Sake Finance’s leveraged liquidity strategies offer an effortless way to leverage your assets, utilizing the liquidity and versatility of our lending, borrowing, and stablecoin. Powered by an innovative isolated smart contract design, these strategies offer users customizability while minimizing the complexity—perfect for both DeFi novices and veterans alike.

Target Audience:

  • DeFi Lenders: Unlock liquidity by supplying pufETH.
  • DeFi Borrowers: Leveraging blue chip assets like $ETH and other assets while maximizing returns.
  • Yield Farmers: Earn attractive incentives by participating in supply and borrowing activities using our leverage liquidity strategies which will launch soon.

Key Features:

Our lending market follows these 3 key principles:

  1. Security first

We utilize a time tested smart contract design with carefully determined liquidation parameters to ensure robustness under various market conditions.

  1. Innovative integrations

We aim to stay at the forefront of innovation by integrating with the most in-demand native and omnichain assets. Many of these assets give our users superb yield generation opportunities.

  1. Seamless user experience

We are simplifying the user experience for DeFi by making our product fun and engaging. Our product offers powerful features while keeping the complexities behind the scenes.

Incentive Proposal:

  • We propose introducing incentives for users who supply pufETH to Sake. With pufETH preparing to onboard to Soneium, this partnership presents a valuable opportunity to unlock liquidity and drive growth within the Puffer ecosystem.
  • These incentives will:
    • Promote liquidity provision for pufETH.
    • Drive user adoption by attracting new participants.
    • Enhance the PufETH & Soneium ecosystem with increased earning and engagement opportunities.
  • Incentives will be distributed through a supply-based mechanism upon the launch of the pufETH pool, leveraging Sake’s existing infrastructure.

Distribution Method:

  • Once the pufETH pool is deployed on Sake, users will be able to supply their pufETH and unlock new earning opportunities. Puffer and Sake will collaborate to develop a robust incentive structure, incorporating token rewards and supply yields to maximize participant benefits and foster ecosystem growth.

Pool Addresses:

  • Recipient Chain: Soneium
  • Pool Address: To be deployed after the initial liquidity is added to the pufETH pool on Sake within the Soneium ecosystem.

Incentive Impact Statement:

  • Introducing token incentives for supplying pufETH on Sake Finance will deliver tangible value to users and enhance overall liquidity across the Puffer ecosystem and the Soneium platform.
  • This initiative, by offering appealing rewards, will:
    • Encourage adoption of pufETH from both new and existing participants.
    • Increase engagement with the pufETH pool.
    • Foster community loyalty and support the long-term sustainability of the protocol.
  • This proposal aligns with Sake Finance’s vision to build a robust DeFi ecosystem and supports Puffer’s efforts to maximize pufETH liquidity and utility within the Soneium platform.

Eligibility Verification:

Logo URL, please provide us with the logo (ideally IPFS):

Any Other Resources e.g. direct URL to pool, docs, etc.

Contact Information:

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The Sake Finance - PufETH Lending and Borrowing pool proposal was approved in the IRC meeting on 03/17/2025 and included in Voting Epoch 5 (03/20/2025).

Status: APPROVED