Enabling Soswap Integration as a Liquidator on Seamless Protocol

Project and Asset Integrations
1

Title : Enabling Soswap Integration as a Liquidator on Seamless Protocol

Summary : The integration of Soswap as a liquidator within the Seamless Protocol will enhance undercollateralized borrowing opportunities for Base network users.

Overview:
Soswap, a leading DEX on the Base Network, is powered by RAI Finance, an established DeFi project since 2020. It was among the first to integrate with the Base Network, with its native token SOFI supported by Coinbase Custody in 2022, and being one of the 10 tokens supported by official Base Bridge in 2023. Soswap has seen rapid growth with a TVL surpassing $1M, especially for emerging altcoins. SOFI is listed on major exchanges such as Bithumb and Huobi Global, reducing reliance on DEX liquidity.

RAI Finance, as a trading hub, offers customizable DEXs for tokens and NFTs, along with Social Trading. It provides intelligent management tools and opportunities in the era of SocialFi. Users can easily build portfolios with various tokens and explore others’ portfolios, making trending themes more accessible. RAI Finance accommodates various asset types, from simple swaps to NFT and index trading, positioning itself as the premier comprehensive DeFi application on Base.

Seamless Protocol, as a lending protocol, relies on having a consistent liquidator to effectively utilize the capital provided by users. Surprisingly, there have been no liquidations recorded in Seamless debt tokens’ transactions since its launch on the Base Network two months ago. As fellow Base Ecosystem Partners, we propose integrating Soswap as a liquidator into the Seamless Protocol to optimize capital asset utilization. We believe that, as builders in this space, we possess the capability to steer the industry towards its originally intended decentralized future. Even small decisions made today can have significant implications for the future. With the backing and adoption of other leading Base projects, we anticipate that this move will contribute substantially to the genuine decentralization of the Base Network.

Implementation:
Seamless Protocol’s Liquidation Logic contract does not restrict liquidations to whitelisted executors exclusively. Therefore, no action is required from the Seamless Protocol side; only Soswap needs to prepare a liquidation contract and apply it to the Seamless Protocol. Soswap is committed to raising awareness and fostering adoption of Seamless within our community.

References
RAI Finance: https://rai.finance/
Soswap: Soswap

4 Likes
2

Thanks for the proposal, I tend to support it since as it is rightly mentioned Seamless Protocol’s Liquidation Logic contract does not restrict liquidations to whitelisted executors exclusively. Therefore, no action is required from the Seamless Protocol.

3

For a phased integration strategy, I propose two pivotal steps preceding Soswap’s role as a liquidator:

  1. SOFI Integration in Lend and Borrow Markets: Our proposal involves integrating SOFI into both the lend and borrow markets within the Seamless Protocol. Currently, SOFI boasts over 26,000 holders in the Base network, ranking as the 5th token by holder count. By incorporating SOFI into these markets, Seamless Protocol can diversify asset options for users while leveraging Soswap’s established credibility within the Base Network. This step aligns with our commitment to expanding offerings and ensuring secure lending and borrowing opportunities for our users.

  2. Soswap ETH-USDC Pair as a Primary Liquidation Source: As part of a strategic maneuver, we advocate for introducing the Soswap ETH-USDC pair as the principal liquidation source within Seamless Protocol. This deliberate step lays the foundation for Soswap’s future involvement as a liquidator. Leveraging this pair for liquidation will optimize asset utilization and bring aboard a trusted partner like Soswap, enhancing the stability and efficiency of the Seamless Protocol.

This dual approach serves to diversify asset choices for users while initiating a mutually beneficial relationship with Soswap, cementing its role within the Seamless Protocol. These proposed enhancements aim to fortify the diversity and reliability of our offerings, fostering deeper connections within the Base Network ecosystem.

4

Soswap is easy to use, especially using the Base chain makes it comfortable, easy and cost efficient. Always make use of it to swap Rebase and use it on the platform. The integration is really great!

5

Bringing Soswap into the Seamless Protocol is a fantastic move. It’s like having a really handy tool in your toolbox. Soswap is super user-friendly, and because it’s on the Base chain, it’s not just easy to use but also cost-effective. It’s perfect for swapping Rebase or any other token you might be using on the platform.

This integration is a real game-changer. It’s making things smoother and more efficient for everyone involved. It’s like having a fast, reliable bridge between two great services. Definitely a thumbs-up from me!

7

Absolutely loving the integration of Soswap into the Seamless Protocol! User-friendly and budget-friendly on the Base chain

This move is a total game-changer – it’s streamlining our crypto experience and connecting us more efficiently than ever.

Big thumbs-up though, smart one.

8

hi everyone thanks for the feedback and input, had a quick question for the OP @RAI.Finance , is soswap integrated into paraswap or other dex aggregators?

if so, many liquidators in the network will already be utilizing soswap liquidity. if soswap would like to build a special purpose liquidator that focuses on soswap liquidity or other customization points, liquidators and the liquidator network is fully open sourced and does not require whitelisting as @Ras noted previously.

However, if anyone from the soswap team would like to bounce off ideas or discuss a bit on the liquidator side, try pinging the general channel of discord, and potentially a new tech/eng channel on discord should be spun up