July 12, 2023
Welcome to the AD Derivatives podcast led by Director of Derivatives; Greg Magadini. Featuring: Will Corkin, Co-Founder & COO of SOMA.finance
The Amberdata Derivatives Podcast recently featured an interview with Will Corkin, Co-Founder of SOMA.finance, a cutting-edge DeFi platform with a unique focus on regulation and compliance. Will provide in-depth insights into the financial and technical aspects of SOMA.finance.
SOMA.finance's Vision and Products:
The platform's core vision is to create a next-generation DeFi ecosystem that bridges the gap between traditional finance and the blockchain world. It is built on three main products
- Issuance:finance operates as a licensed broker-dealer in the US through its partner Tritaurian Capital. It allows for private placements of tokenized securities and digital assets using blockchain technology. The first product to be launched is the SOMA token, which will be issued as a Reg CF (Regulation Crowdfunding) token. This will enable retail investors in the US and global investors to participate in the token sale, making it one of the first of its kind.
- DEX (Decentralized Exchange):finance offers a decentralized exchange that goes beyond crypto and digital assets. It aims to support various asset classes, including public equities, commodities, and ETFs. The platform ensures regulatory compliance by backing all assets one-to-one, ensuring transparency and accountability
- Earn and Yield Products: The platform provides multiple opportunities for users to earn a yield from their assets. This includes traditional DeFi staking and yield farming, as well as on-chain Proof-of-Stake (POS) staking of assets. This feature has been a point of contention for some platforms in the US, but SOMA.finance aims to navigate the regulatory landscape and offer compliant staking options.
Compliance and Regulation:
One of the critical aspects of SOMA.finance is its strong emphasis on compliance and regulation. Being a US licensed entity, the platform takes rigorous measures to ensure regulatory adherence. It employs a three-step process of on-chain identity verification, off-chain identity verification, and information verification through its SOMA guard admin panel. This ensures that all users are fully compliant with KYC/AML regulations before accessing the platform's products.
Tokenomics and SOMA Token Holders:
The SOMA token is designed as a dividend-issuing asset, allowing token holders to receive dividends from the platform's profits. The frequency of dividends is yet to be determined, but the platform plans to allocate a percentage of its profits to token holders, potentially around 10%.
Additionally, SOMA token holders can benefit from liquidity pool trading fees similar to popular AMMs like Uniswap and SushiSwap. Token holders who provide liquidity to trading pairs can earn a share of the fees generated on the platform.
Tokenizing Future Earnings and Creative Industries:
The interview discussed the potential of tokenizing future earnings of public figures, artists, and athletes, allowing investors to participate in their success. SOMA.finance aims to support creative industries by enabling artists to tokenize their future revenue streams, retaining creative control, and front-loading future earnings. This democratizes access to investment opportunities and allows fans and investors to benefit from the success of their favorite artists or athletes.
Conclusion:
SOMA.finance's focus on compliance and regulation sets it apart from many DeFi platforms, providing a bridge between the traditional financial world and the blockchain space. Its innovative products and emphasis on tokenization have the potential to revolutionize the financial landscape, especially in the creative industries. With strong financial and technical expertise, Will Corkin and his team are paving the way for a more democratized and transparent financial ecosystem.
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To learn more about Soma Finance, click here.
