sonne

What is Sonne ?

Sonne is a platform for lending and borrowing on chain.  On chain borrowing is always a loan on collateral. When you want to take a loan in a stable coin or any other crypto, you must have something of value deposited as collateral for this loan. This way the people providing the money are sure they will get their money back even when the person taking the loan does not want to repay.

Sonne Finance is running on the  Optimism chain, the L2 chain on Ethereum.

Sonne Finance

Earning on Sonne

You can earn intrest on your holdings when you stake them at Sonne Finance. The Intrest on ETH and BTC are relative low at his moment, and the earnings on all kind of stable coins are high compared to them. At this moment of writing nothing has an intrest earnings rate higher then ten percent.

Similiar projects

This type of borrowing and lending platform is not unique to the Optimism chain. As you might know , everything that is build on ETH , can also be deployed on Optimism without any problem.  For excample Venus, you will find the link below, is the same type of platform but then on Binance Smartchain.

Venus

Problems that might occur

Lending out you money on a site like Sonne is not complete without any risk.  Summing up some of the problems that can arise :

1. The site or wallet got hacked, and your money is stolen.
2. The people behind the project walk away with your money, they have access to all contract, and can change them because they are the creators/owners.
3. Sofar it is a matter of trust and good management , but there is something else that might be a problem. When 100 percent of all money is used for loans you are not able to withdraw at that time, untill loans are repaid. For example when a stable coin depegs, most likely all the money in the pool is used for loans, when you are not able to withdraw because of that, you have to wait till the storm is over. You did make high intrest, but you are not able to neutralise your prosition by selling the stable coin thats depegging, because its all locked in loans. This can mean a big loss for you.

 

 

Where to trade Sonne

Main market for Sonne is Uniswap, the most liquidity is there. Some smaller CEX are listing it now as well. For example MEXC.

Sonne Finance Review

Sonne Finance is a great addition to the Optimism environnement. But with many similiar chains where all the same smart contracts can be deployed it is not really unique. Its good that it exists on Optimism but for the returns you should always compare them to other platforms doing exactly the same. 

Social Media and Chat for Sonne

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