Seneca is a CDP (collateralized debt position) protocol based on Arbitrum that allows users to borrow or lend assets on the chain they want. The protocol uses LayerZero's Omnichain technology to mint senUSD, the project's stablecoin, by pledging assets such as LST or yield-generating assets (yield-generating tokens), thereby increasing capital efficiency.
Seneca Products
Seneca’s main product is senUSD.
senUSD is the project's stablecoin, which is pegged to the U.S. dollar at a 1:1 ratio and relies on an arbitrage mechanism to maintain stability, thereby increasing users' capital efficiency. Specifically:
Users who have already minted senUSD can buy more senUSD at a lower price.
Allows users to sell senUSD for a price higher than $1.
Users can buy senUSD for less than $1 on one decentralized exchange (DEX) and sell it for $1 or more on another DEX.
Seneca Highlights
Debt Management Methods
Seneca uses Collateralized Debt Positions (CDPs), also known as "Apricus Chambers". Starting from these Apricus Chambers, the protocol will manage each position so that the debts are not risky to each other. That is, risky collateral types will not affect the protocol, and vice versa.
Initially, Apricus Chambers is designed specifically for highly trusted assets to ensure the security and efficiency of the protocol. In the future, the protocol will further develop the collateral portfolio.
Improve capital utilization efficiency
In addition to using senUSD for DeFi operations, the protocol allows users to deposit yield assets (assets that generate yield) as collateral.
The profitable assets supported by this protocol include: (the following assets are to be supplemented)
LP token
Liquid Staking token
Collateral (e.g. Aave’s aUSDC)
Principal token
In other words, users can lock these types of assets in the protocol as collateral but still earn additional returns through a yield-generating model.
Real return characteristics
The protocol incorporates a real yield feature that encourages users to lock up SEN tokens (the protocol’s utility token) for 16 weeks in exchange for veSEN tokens (the protocol’s governance token). Through veSEN, users will be rewarded with 50% of the protocol’s revenue and have the right to govern the project.
Omnichain Solutions
The protocol uses LayerZero's Omnichain solution to connect all blockchains without interoperability. Users can borrow and lend assets on any chain. At the same time, lenders can also withdraw assets on the chain of their choice.
Seneca's income
The protocol's revenue sources include lending fees, interest, third-party fees, and liquidation fees. Therefore, lending fees and interest rates are not fixed, but depend on each pool. Pools with higher total asset value will have higher lending fees and interest rates, and vice versa.
In addition to using 50% of the revenue to reward veSEN token holders, the protocol plans to distribute the revenue as follows:
If the protocol continues to develop, the remaining 50% of the revenue will be used to repurchase (buy back) SEN tokens and destroy them to stabilize the value of the tokens.
For marketing and distribution activities of project partners.
Currently, the protocol is still under development. The above plans may change depending on the situation.
What is Seneca Token?
Project tokens include: SEN (utility token) and veSEN (governance token)
SEN Token Key Metrics
Token Name: Seneca
Token symbol: SEN
Blockchain: Arbitrum, Ethereum
Token Contract: Updating!
Token Types: Utility and Governance
Token Supply: 100,000,000 SEN
Circulating Supply: Updating!
Use Cases of SEN Token
SEN tokens are used for the following:
The native token of the SEN function.
veSEN tokens are used for the following:
Actual profit reward distribution.
Project management rights.
Project Support Rewards.
SEN Token Distribution
The project announced that the distribution plan of SEN tokens is as follows:
System incentives: 35%
Seneca Foundation: 17%
Omnichain liquidity: 15%
Private sales: 8%
Community incentives: 7.5%
DAO：7.5%
Airdrop: 6%
Early Contributors: 4%
SEN Token Sale
Seneca will not be doing a public sale. The project only has one early contributor round and is doing a private sale (coming soon).
Route Map
The project has not yet released a roadmap.
project team
The project has not yet announced its development team.
Project Partners
The project has not yet announced its partners.
Similar Projects
Similar projects include Seneca, etc.:
Radient Capital: Radient Capital is a lending protocol project that works on the second layer of the Arbitrum chain. Radiant aims to be the first money market using a full-chain model.
Lybra: Lybra is a protocol that belongs to the Liquid Staking Derivative (LSD) puzzle and is expected to increase the flexibility of assets on Ethereum.
in conclusion
Seneca is a CDP (Collaborative Debt Position) protocol based on Arbitrum that allows users to borrow or lend the on-chain assets they want. LayerZero's protocol uses Omnichain technology to improve capital efficiency by pledging assets such as LST or profit-generating assets, so through my post today, you can use LayerZero's Omnichain technology to improve investment efficiency and profits for yourself.
