Solar Protocol is a passive income project where uses buy the Fantom-based $KELVIN and use it together with $USDC to mint Star NFT, which represents the percentage of protocol revenue that the user can receive.
Solar Protocol is made up of 5 vaults, which each contain their own resources and contribute to the protocol in their own way.
- The Rewards Vault
The Rewards Vault is where the rewards for Star holders come from. The high initial volume of the vault plus the high percentage of tokens redirected there after creating a Star will ensure there will always be tokens to distribute. This vault will only hold the native tokens since rewards are exclusively paid out in the native token $KELVIN.
- The Treasury Vault
The Treasury Vault contains all the protocol’s investments. Star Protocol's objective is to have the least amount of native tokens as possible in order to lower the sell pressure on $KELVIN. This is why a higher proportion of stable coins go to the Treasury; to allow the project to invest and diversify for the good of the protocol without having to sell native tokens.
- The LP Vault
The LP Vault contains all the LP tokens owned by the protocol, creating POL which brings stability to the protocol. LPs contain 2 tokens, in this case $KELVIN and $USDC, so in order to provide liquidity without having to sell native tokens, $USDC is used to create a Star. This reduces sell pressure while allowing the protocol to provide POL, which contributes to a stable/uptrending token price.
- The Stable Price Vault
The Stable Price Vault receives income in both native tokens and stablecoins. There is an initial investment of 11,000$ coming from presale allocations and more assets will be added as the treasury creates profit. If more income is needed to sustain this vault down the line, maintenance and trading fees could be added to the vault too. This vault will be managed by the Stable Price Bot which is explained further in the next section.
- The Project Vault
The Project Vault stores all the assets that are used to maintain the operational costs of running the project including as paying staff, hiring new developers and designers, hosting, treasury/investment upkeep, marketing, and more. The team will have a monthly payment cap of $31,000 (budgeted for our current 11 staff members. This is subject to change if/when the team grows).
