There is a growing need for a platform that bridges the crypto world with the traditional economy, offering stability and attractive returns. Many DeFi lending and borrowing platforms struggle with defaults and yield volatility during market declines. This instability highlights the necessity for diverse business models and more secure collaterals. A platform that connects crypto with real-world businesses can provide predictable interest and enhance overall financial resilience. Soil aims to meet this need, offering innovative solutions for crypto and traditional economies.

What is Soil (SOIL)?

Soil (SOIL) has achieved significant milestones in the cryptocurrency and blockchain landscape, showcasing its growth within the decentralized finance (DeFi) sector. Soil began its journey with a successful Initial DEX Offering (IDO) in October 2023, raising over $800k, which laid a strong foundation for its presence in the crypto market. This was followed by listings on centralized exchanges like Gate.io, enhancing its accessibility to a broader audience.

In mid-January 2024, the Soil protocol was officially launched, quickly amassing nearly $1 million in Total Value Locked (TVL). This launch was complemented by integrating Chainlink protocol and deploying across multiple chains such as Ethereum and Arbitrum, broadening Soil’s reach and ensuring scalability. The development of DCx (Decentralized Credit Exchange) further demonstrated Soil’s commitment to innovation, allowing users to trade their liquidity positions, capitalize on changing interest rates, and access capital instantly.

Soil’s commitment to regulatory compliance was underscored by establishing a comprehensive legal framework, achieving validation from a financial market regulator, and preparing for an international rollout. The execution of an extensive marketing campaign and recognition from top-tier Key Opinion Leaders (KOLs) further boosted its profile.

Additionally, Soil has implemented technological enhancements such as the Money Making Interface (MMI) and integrated a payment gateway for fiat transactions, simplifying user interactions and expanding its reach. With a dedicated team of experts from crypto and traditional finance sectors, Soil continues to drive innovation and secure its position in the DeFi landscape.

The Soil team consists of diverse crypto and traditional finance experts, including CEO Jakub Bojan, CIO Nick Motz, CTO Mateusz Mach, and CMO Michael Maciuk, fostering a balanced and capable approach.

How Does Soil Work? Crypto Loans and Cash Borrowing

Soil’s yield-generating mechanism primarily focuses on providing loans to Small and Medium-sized Enterprises (SMEs) through private debt fund managers. This approach supports the growth and sustainability of SMEs while offering stable returns on investment for crypto investors. The protocol ensures compliance with existing regulations within the European Union, providing a secure and trustworthy environment for participants, which sets Soil apart from many other entities in the DeFi space.

Soil’s protocol offers various financial services, including staking, lending, and data-sharing opportunities, transforming corporate debt and fixed-income investments through blockchain technology. By integrating these services, Soil positions itself as a fully regulated DeFi protocol, ensuring that returns on stablecoins are secure and backed by tangible assets existing off-chain.

The yield generated on stablecoins from Soil’s lending pools comes from the interest paid on loans extended to companies, specifically SMEs, by private debt fund managers. These loans are customized to meet the unique growth requirements of each company. All loans approved by private debt fund managers are fully collateralized by real-world assets, supported by various legal documents. These include registered pledges on shares and assets, mortgages on plots and assets, personal guarantees, submissions to enforcement, sureties for parent companies or other entities, escrow accounts, and assignments of loans.

Soil’s lending feature aims to provide lenders with fixed, over-the-standard, and reliable yields on stablecoin loans. Cash flows from traditional businesses outside the crypto market power the yield rate. This model ensures that contracting cash flows to repay loans and interest creates a scalable, sustainable, and crypto economic-cycle-proof business model working in the cash world, enabling Soil to provide programmed fixed yields in various market circumstances.

Most blockchain lending protocols base their operations on money market mechanisms, exploiting differences between the yield required by lenders and the interest rates that borrowers are willing to pay or utilizing staking rewards from yield-generating assets locked up in the protocol by borrowers as collateral. These models provide operational stability and attractive yields during bull markets but may struggle during bear markets if not supported by reserve or external funds. In contrast, Soil’s yield-generating mechanism is tied to advanced crypto loans and traditional economy projects, less exposure to crypto market volatility, and more resilience to market cycles.

Source: soil.co

Soil’s borrowing demand is not directly exposed to highly volatile crypto market conditions, making it less dependent on market cycles and expected to grow considerably in a highly inflationary, consumptive economy. This unique business model, bridging blockchain technology and crypto assets with operating businesses, enables Soil to offer a stable, safe, and attractive yield to crypto lenders.

The introduction of Soil’s cash borrowing feature aims to complement its lending services, providing additional opportunities for users to leverage their crypto assets for cash loans. This feature will further enhance Soil’s offering, ensuring a comprehensive financial ecosystem that bridges the crypto world with traditional finance.

Cash Borrowing

Soil’s cash borrowing feature is designed to address the limitations of crypto payments and provide immediate access to fiat money without liquidating cryptocurrency holdings. While crypto payments are still in their early stages, with limited acceptance and high exchange rates charged by payment providers, Soil offers a more flexible and efficient solution. Traditional crypto payment methods often require prepayment and centralized wallets, limiting users’ ability to withdraw cash or transfer money to regular bank accounts. Soil’s innovative approach aims to overcome these challenges, providing users a seamless way to access liquidity.

With Soil, users can borrow cash against their crypto holdings by locking stablecoins in the protocol. This process lets users maintain their crypto assets while receiving fiat money directly into their bank accounts. The amount of cash provided corresponds to the value of the stablecoins locked minus a small operating charge. This system enables users to keep their crypto assets, preserving the potential for future value appreciation while also meeting immediate cash needs.

Soil’s cash borrowing feature enhances financial flexibility and bridges the gap between digital and traditional finance. Soil offers a reliable method for users to obtain fiat currency using their stablecoins, allowing them to fulfill financial needs without liquidating their crypto holdings. This solution is particularly beneficial for individuals who must repay credit card bills, pay rent, or cover other urgent expenses. The ability to borrow against stablecoins offers a unique value proposition, making it easier for users to manage their finances in a rapidly evolving digital economy.

Source: soil whitepaper

Furthermore, Soil plans to expand its service offerings to include a broader range of crypto assets as collateral for cash borrowing. This expansion will enable users to access liquidity from a wider variety of digital assets, enhancing the overall utility and appeal of the Soil protocol. By integrating these features, Soil aims to provide a comprehensive financial ecosystem that supports the needs of both crypto investors and traditional borrowers.

Soil’s cash borrowing feature exemplifies its commitment to innovation and user-centric solutions. By allowing users to borrow fiat money against their crypto holdings, Soil provides a flexible and efficient way to access liquidity, bridging the gap between the crypto world and traditional finance. This approach enhances financial flexibility and positions Soil as a leading player in the decentralized finance space, offering unique and valuable services to its users.

Soil Use Cases

Soil provides a unique platform that bridges the gap between the crypto world and traditional finance, offering multiple use cases for its users. This integration allows users to benefit from both the security and efficiency of blockchain technology and the stability and trust of traditional financial systems.

• Lending and Earning Interest: Users can lend their stablecoins to Soil’s lending pools, which extend loans to Small and Medium-sized Enterprises (SMEs). This setup supports the growth of these businesses and offers crypto investors a stable and attractive return on investment. By earning interest denominated in stablecoins and SOIL token rewards, users can enjoy higher and more predictable yields than traditional DeFi platforms.
• Cash Borrowing Against Crypto Holdings: Soil enables users to borrow fiat money by locking their stablecoins or other crypto assets in the protocol as collateral. This feature provides immediate access to cash without the need to sell their crypto holdings, allowing users to meet their financial obligations while retaining the potential for future value appreciation of their assets. The process is straightforward, with funds transferred directly to users’ bank accounts.
• Cross-Chain Integration and Asset Management: Soil integrates with multiple blockchains, enhancing its reach and usability. Users can manage and track their crypto assets across different chains, optimizing their investment strategies more easily. The platform’s secure and efficient design ensures that assets are monitored and managed effectively, providing peace of mind to investors.

Soil’s innovative approach to combining DeFi and traditional finance opens up new opportunities for users to maximize their returns while maintaining security and flexibility.

Soil Main Features

Soil Protocol offers a range of features designed to enhance user experience and investment security within the DeFi ecosystem. Below are the primary features:

Incentives for Early Lenders and Protection

Soil distributes tokens from a dedicated Early Birds Pool to all active lenders to reward early participation during the first six months. The pool is divided into 180 daily tranches, rewarding lenders proportionally based on their contributions. Early participants benefit from a higher reward ratio due to initially lower lending amounts. Additionally, Soil implements a Guarantee Fund to mitigate protocol and chain default risks, providing an extra layer of security by ensuring loan repayments up to a certain amount in case of insolvency.

Earn

Soil’s earning mechanism focuses on providing users with competitive and stable returns. By lending stablecoins to the Soil protocol, users can earn interest denominated in stablecoins and additional rewards in SOIL tokens. The platform ensures yields are backed by real-world assets, offering higher stability than other DeFi protocols that rely heavily on volatile crypto markets. This approach enables users to enjoy predictable and attractive returns while maintaining the potential for further investment opportunities through staking and token appreciation.

Source: soil.co

Swap

The Soil platform also includes a Swap feature, enabling users to seamlessly exchange SOIL tokens for other cryptocurrencies or stablecoins. This functionality ensures liquidity and flexibility for users, allowing them to manage their portfolios efficiently. The Swap interface is designed to be user-friendly, offering real-time price updates and minimal slippage to optimize the trading experience. By integrating this feature, Soil enhances its ecosystem, providing users with a comprehensive suite of financial tools within a single platform.

Source: soil.co

What is the SOIL Coin

The SOIL Coin is the native token for the Soil protocol. Its maximum supply is capped at 100 million units, of which 11.69 million (11.69%) are already in circulation (August 2024).

The SOIL token is developed on the Polygon blockchain and designed to function as a fundamental component of the Soil protocol, which aims to enhance the efficiency and profitability of lending and borrowing activities. The token plays a central role in capturing the protocol’s profits through its deflationary tokenomics, which means that as the Soil platform expands and its total value locked increases, the intrinsic value of the $SOIL token also rises. This mechanism is intended to build long-term value for holders of $SOIL and increase the protocol’s usability and appeal.

$SOIL serves multiple purposes within the ecosystem. It acts as a yield tokenization tool where token holders can supply their $SOIL to the protocol to secure and earn rewards. These rewards come from various operations within the platform, including fees and interest payments. Additionally, locking $SOIL tokens into the protocol allows holders to enjoy enhanced yields on stablecoin investments and access to immediate fiat currency under preferential terms, leveraging the stablecoin liquidity locked on the platform.

The tokenomics of $SOIL are structured to encourage active participation by various stakeholders, including lenders, stakers, borrowers, and investors. Lenders provide stablecoin loans and earn returns in crypto and $SOIL, while stakers boost their yields and participate in governance decisions. Borrowers access these funds, typically real-world companies or individuals needing alternative financing solutions. Investors engage with the token for potential high returns driven by the protocol’s growth and token scarcity induced by strategic buybacks and burns.

The Soil protocol and its $SOIL token offer a comprehensive approach to decentralized finance by integrating yield-boosting strategies, a deflationary economic model, and a governance framework to create a robust lending and borrowing environment. This ecosystem is tailored to support sustained growth and utility, fostering a stable economic foundation for $SOIL and its holders.

The distribution of SOIL tokens is meticulously planned to ensure a balanced allocation that supports the ecosystem’s growth, stability, and engagement from various stakeholders. Here’s how the SOIL tokens are distributed:

1. Seed and Private Investors:

• Seed: 8.5% of the tokens are allocated to seed investors. These tokens have a three-month cliff, followed by a linear vesting period of 12 months post the Token Generation Event (TGE).
• Private: 12.5% of the tokens are reserved for private investors, with a one-month cliff and linear vesting over nine months from TGE.
• Lenders Incentives: 12% of the tokens are designated as incentives for early lenders. These tokens are distributed daily in proportion to the amount lent, starting with 5% released at TGE and the remainder vesting over 32 months.
• IDO (Initial DEX Offering): 3% of the total supply is allocated to public sale through decentralized and/or centralized exchanges. Here, 15% of the tokens are available at TGE, with the rest vesting linearly over nine months.
• Staking Rewards: 10% of the tokens are set aside to reward users who stake SOIL tokens and provide liquidity, with an initial 5% released at TGE and the rest vesting over 32 months.
• Ecosystem Development: 10% of the tokens are allocated for partnerships, advisors, and marketing initiatives. This portion follows a release schedule starting with 5% at TGE and a three-month cliff before vesting over 24 months.
• Treasury (Community & Development Fund): 14% of the tokens are reserved for the Soil Community Fund to support ongoing development and community initiatives. A 5% initial release is followed by a six-month cliff and 30 months of linear vesting.
• Liquidity Providers: 15% of the tokens are earmarked for liquidity providers who partner with the protocol to ensure sufficient market liquidity. This is crucial for maintaining healthy trading volumes and token stability.
• Team: 15% of the tokens are allocated to the core team members, with no tokens released at TGE. Instead, team tokens have a 12-month cliff, followed by 24 months of linear vesting to align team incentives with long-term protocol success.

Source: soil whitepaper

This structured distribution strategy is designed to incentivize participation, ensure long-term commitment, and gradually integrate the token into the broader crypto market, thus supporting the sustainable growth of the Soil protocol.

Is SOIL a Good Investment?

The SOIL token is an intriguing investment due to its innovative approach to capturing protocol profits and enhancing yields through strategic tokenomics. Its integration on the Polygon blockchain promises scalability and lower transaction costs, appealing to a broad range of DeFi participants. However, potential investors should consider the inherent volatility and risks associated with the cryptocurrency market, particularly with tokens heavily reliant on platform growth and adoption rates. As with any crypto asset, shifts in market sentiment and regulatory changes can significantly impact performance and valuation.

How to Own SOIL?

To own SOIL, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account and get it verified and funded. Then, you are ready to go through the steps to buy SOIL.

News on Soil

The SOIL team announced a significant buyback and burn initiative, reducing the $SOIL supply by 150,000 tokens. This strategic move follows a stellar quarter where Soil’s revenue doubled, showcasing robust financial health and growth. This token burn is our way of giving back and enhancing value for the SOIL community. It reflects our commitment to sustainability and long-term prosperity for all stakeholders involved.

Useful References

For the latest updates about Soil, you can visit:

• The official website
• X
• Telegram
• Discord
• LinkedIn

Take Action on SOIL

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• SOIL/USDT