TLDR
- Port Finance is using Socean Streams to purchase its own liquidity.
- On the 8th of February, 2022, buyers can sell PORT-USDC Atrix LP tokens and PORT-CASH Saros LP tokens and buy a stream of PORT unlocking over 30 days (b30PORT).
- This allows long-term buyers to purchase PORT at a discount, and allows Port Finance to own its own liquidity.
We’re incredibly pleased to announce that Port Finance will be using Socean Streams to purchase their own liquidity. Port Finance will be buying $10,000 of PORT-USDC Atrix LP tokens, and $10,000 of PORT-CASH Saros LP tokens.
Why is Port Finance buying PORT-USDC and PORT-CASH LP tokens?
Port Finance is a lending protocol for Solana, with their native token PORT. Port Finance is buying PORT-USDC and PORT-CASH LP tokens to ensure deep liquidity for the PORT native token — allowing PORT holders to always buy and sell PORT without incurring slippage.
Why is Port Finance using Socean Streams?
Socean Streams allows Port Finance to control its token supply inflation and filter out mercenary traders.
By distributing streams, Port Finance slows down PORT token inflation, which is healthier for the PORT token.
Socean Streams also filters out short-term traders. There are two types of buyers: long-term holders who believe in the protocol (HODLer Harry), and people who are only interested in short term price action (NGMI Nathan). If Port Finance sold PORT to buy LP tokens on the open market, both long-term holders and short-term traders would buy PORT.
Everything changes once we add the time component. Long-term holders have a lower discount rate (they are more patient) than short-term traders. They will be willing to pay a higher price for bPORT compared to short-term traders, and will thus outbid them.
The graph below shows the price that a more patient holder would pay vs. an impatient trader as the bonding duration increases. If the price is anywhere above NGMI Nathan and below HODLer Harry, NGMI Nathan will not purchase bPORT. Soceans Streams thus allows Port Finance to ensure that only high-conviction supporters purchase its token in this offering.
For more details, see the Socean Streams whitepaper.
Why should I buy bPORT?
Buying bPORT gives you a great way to support Port Finance. If you believe that PORT is currently undervalued and will appreciate in the future, you can buy bPORT and in return get a better price for doing so. By buying bPORT, you will also help Port Finance secure PORT-USDC liquidity.
Here’s what Gabriel Wong, Core Developer of Port Finance, had to say:
We are impressed by the Socean team’s expertise with economic design and their support on various DEX markets.
We’re really excited to be working with Port Finance as they are a really strong builder team and one of the best lending protocols on Solana.
How do I buy bPORT?
bPORT will be available for purchase on the 14th of February, 2022. Go to https://socean.fi/app/streams to purchase b30PORT.
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