What is SONE?

SONE (pronounced as "S1") is a decentralized overcollateralized stablecoin that is initially only minted from assets supplied to the Sake lending protocol. SONE’s value is programmatically aligned to the U.S. Dollar, which will be maintained through market efficiency. As a decentralized stablecoin on the Soneium, SONE is minted and borrowed by users.

As with all borrowing on the Sake Protocol, a user must supply collateral (at a specific collateral ratio) to be able to mint SONE. Correspondingly, when a user repays a borrow position (or is liquidated), the SONE is returned to the SAKE pool and burned. All the interest payments accrued by minters of SONE will go directly to the SAKE DAO treasury, in contrast to the standard reserve factor collected when users borrow other assets, and the principal is burned. Significant demand exists for a stablecoin that is truly decentralized, overcollateralized, and configurable.

Recent events have demonstrated the use case for decentralized stablecoins as a means of maintaining a stable value during periods of market volatility. SONE, a stablecoin controlled by SAKE Governance, has the potential to become an integral part of the continued growth of the DeFi ecosystem with community support.