Why we decided to build on Soneium

Our decision to build on Soneium stems from three core beliefs and experiences.

Capital Inflow on Sonieum

Firstly, we’re proud to be given the opportunity to pioneer an entire DeFi ecosystem on Soneium. By effectively partnering with DeFi protocols on the chain, we strive to build highly curated DeFi products that benefit Soneium users and power capital inflow on the chain. We aim to achieve capital inflow and liquidity on Soneium the day it launches its mainnet. Users can already start depositing their ASTR with Neemo Finance and earn rewards from liquid dApp staking - all while being able to utilize the LST in DeFi on Soneium!

Strategic Collaborations with Startale, Astar Network, and Soneium

Secondly, our decision is based on our strategic collaboration with Startale and our history of building on Astar Network. Our core team members and developers have extensive experience developing on the Astar Network as well as building liquid staking and restaking solutions on Ethereum. Thus, we can leverage our own extensive experience to bring in swathes of liquidity to Soneium. As such, we’ll also empower the development of decentralized applications on Astar Network.

Fundamental significance of LSTs

Thirdly, liquid staking is one of the most primitive DeFi legos as it is closely connected to the underlying PoS network as well as with a variety of different types of DeFi protocols such as money markets. One of the core uses of any LST is its ability to be used in money markets for enhanced rewards via leverage. However, this can only be achieved when there is sufficient liquidity on DEXes/CEXes. In our case, our liquid staking token references the underlying exchange rate with the LST. This solves the issue of price oracle, enabling easier integration of LSTs in money markets.

Aligned Vision for Mainstream Adoption

dApp Staking on Astar Network offers competitive yields. For comparison, S&P500 Index (which tracks the world’s biggest tech companies) offers an annual 10% APY, the Nasdaq Composite offering similar yields peaking at +43% in 2020. dApp staking (especially Timelocked Staking as offered by Neemo Finance) offers up to +20% APY. This renders dApp staking a highly powerful and attractive financial product for both institutional and retail investors. As we collaborate with Soneium, our vision to take this product mainstream aligns with their vision to attract the global userbase to Web3. Since our visions are aligned, our collaboration is a hand-in-glove partnership that propels the growth of both Neemo Finance and Soneium.