Introduction

What is SOHM?

SafeOHM(SOHM) is a decentralized reserve currency protocol based on the SOHM token. Each SOHM token is backed by a basket of assets (e.g. BNB) in the SOHM treasury, giving it an intrinsic value that it cannot fall below. SOHM also introduces unique economic and game-theoretic dynamics into the market through staking and bonding.

What is the point of SOHM?

Our goal is to build a policy-controlled currency system, in which the behavior of the SOHM token is controlled at a high level by the DAO. In the long term, we believe this system can be used to optimize for stability and consistency so that SOHM can function as a global unit-of-account and medium-of-exchange currency. In the short term, we intend to optimize the system for growth and wealth creation.

How do I participate in SOHM?

There are two main strategies for market participants: staking and bonding. Stakers stake their SOHM tokens in return for more SOHM tokens, while bonders provide LP tokens in exchange for discounted SOHM tokens after a fixed vesting period.

Governance participants can get involved on our forum and through discussions on our community discord and DAO discord servers respectively. We are always looking for new community members to contribute!

How can I benefit from SOHM?

The main benefit for stakers comes from supply growth. The protocol mints new SOHM tokens from the treasury, the majority of which are distributed to the stakers. Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.

The main benefit for bonders comes from price consistency. Bonders commit a capital upfront and are promised a fixed return at a set point in time; that return is in SOHM and thus the bonder's profit would depend on SOHM price when the bond matures. Bonders benefit from a rising or static SOHM price.

Selling will also affect the price of SOHM, thereby affecting Bond's income. When someone sells SOHM, the system will charge a 10% transaction fee and invest in bonds within one hour to increase bond prices.

Who created SOHM?

SOHM was ideated and built by a distributed pseudo-anonymous team, and is contributed by the SOHM DAO community.

Who runs SOHM?

No one. SOHM is DAO-governed. All decisions are formed by community members on the forum and made by token holders through snapshot voting.