Sonne Finance

Overview

Sonne Finance is a decentralized lending protocol built on the Optimism network. The SONNE token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters and development.

Purpose and Utility

The primary purpose of SONNE is to incentivize liquidity provision and governance participation in the Sonne Finance ecosystem. Token holders can vote on protocol upgrades, risk parameters, and other governance proposals.

Business Model

The protocol operates as a lending platform where users can supply assets to earn yields and borrow against their collateral. The core business model involves interest-based lending and borrowing, which is typically considered non-compliant with Islamic finance principles when not done as an act of charity.

Platform Development and Adoption

The protocol has shown consistent development activity and maintains active governance participation. The platform has achieved notable adoption on the Optimism network, with significant total value locked (TVL) in its lending pools.

Token Distribution

SONNE tokens were distributed through various mechanisms including liquidity mining, ecosystem incentives, and team allocations. The exact distribution metrics and vesting schedules are publicly available through the protocol's documentation.