Seneca

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Liquidity, capital efficiency, and leverage are the backbone of DeFi protocols. Many #DeFi protocols rely on unsustainable incentives that hinder their platform's growth However, @SenecaUSD aims to change this by serving as a CDP platform for yield-bearing assets. A thread 🧵

1️⃣ What is Seneca? ▪️ Seneca is an omnichain lending market, CDP platform for yield bearing assets on Arbitrum ▪️ With its omnichain lending market, Seneca aims to unlock liquidity for these assets by allowing users to deposit them as collateral & borrow its stablecoin, senUSD.

2️⃣ Why Seneca has potential ▪️ There is currently $50.37 billion ETH staked, creating significant demand for Liquid Staking Tokens (LSTs).

▪️ Seneca has whitelisted LSTs as one of the yield-bearing assets, allowing users to borrow $senUSD to maximize capital efficiency while earning yield. ▪️ Additionally, other yield-bearing assets such as LPs, vault tokens, and deposit receipts can also be used as collateral.

3️⃣ How does it work? 1/ Deposit your yield-bearing assets on Seneca as collateral. 2/ Borrow senUSD against your deposited assets.

3/ Use senUSD to acquire more yield-bearing assets for deposit. 4/ Keep all your yield and only pay interest on the borrowed amount. 5/ Set your loan-to-value ratio and repay the loan at your convenience.

4️⃣ Seneca's revenue model ▪️ Seneca generates revenue through various streams, including borrow fees, interest accrued by open positions, and liquidation fees.

▪️ Borrow fees and interest rates vary depending on the pool, with higher LTV pools using higher rates to compensate for higher demand. ▪️ The protocol receives 10% of the total fee as its share of the liquidation fees.

5️⃣ Tokenomics [1] SEN token SEN is the native token of Seneca Protocol Total supply: 100M ▪️ 17% for Seneca foundation: 5% unlocked TGE, 2-year linear vesting ▪️ 7.5% for community incentives: 5% unlocked TGE, 1-year linear vesting ▪️ 7.5% for Dao: 1-year linear vesting

▪️ 6% for airdrop: 10% unlocked TGE, 3-month linear vesting ▪️ 4% for early contributors: 10% unlocked TGE, 3-month linear vesting ▪️ 8% private sale: ▪️ 15% Omnichain liquidity: 4M $SEN unlocked for initial liquidity ▪️ 35% Incentives: 5% unlocked TGE, 4 year linear vesting

[2] veSEN token ▪️ veSEN is Vote-escrow token of SEN that is used access revenue redistribution and vote on governance proposals. ▪️ veSEN is obtained by locking SEN/WETH liquidity on Balancer 80:20 for 16 weeks

[3] senUSD ▪️ senUSD is a CDP stablecoin that is loosely pegged to $1. ▪️ Users can borrow senUSD by depositing assets as collateral or purchase senUSD on Dexes.

[4] Token utility ▪️ Seneca Protocol redistributes half of lending market revenues to veSEN **holders in SEN as real yield. ▪️ Weekly revenue redistribution is processed each Thursday

▪️ Half of the lending market revenues will be used to buy SEN from the open market and burn it. ▪️ Join the Senate and vote on new collateral whitelisting and protocol parameter changes.

6️⃣ Upcoming on Seneca ▪️ Seneca is scheduled to launch its dApp on November 8th, following a thorough audit.

▪️ The testnet will be launched soon, with 6% of the total supply of SEN allocated for an airdrop. ▪️ The public sale is live on @TheGemPad . Already reached the initial Soft Cap, you can join here. gempad.app/presale/0xf196378c7F5A5d95725f23a32298B8CB3e6C65BB?chainId=42161 twitter.com/SenecaUSD/status/1720872006931857885

Besides, @GammeStrategies, with experience in managing crypto liquidity, is now supporting @SenecaUSD in managing $senUSD v3 liquidity. ▪️ This partnership improves liquidity solutions and promises a bright future for both parties. twitter.com/SenecaUSD/status/1720141936533610767?s=2

More info to #DYOR X: @SenecaUSD Website: senecaprotocol.com/ TG: t.me/seneca_protocol DC:

Tagging some chads are supporting for $SEN: @ChadCaff @ardizor @CryptoGideon_ @crypto_popseye @defi_antcrypto @MoonKing___ @Cryptoalpharian @CryptoShiro_ @TheDeFISaint

Seneca

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