🔒paraSBT - Soulbound Token

paraSBT is Parabol's soulbound token, a soulbound ERC-20 token but uniquely designed to be non-transferable. (Think points but onchain) As such, paraSBT tokens are permanently tied to the owner's wallet, prohibiting transfers to other wallets.

paraSBT serves as a key to access paraUSDs (Parabol's native stablecoin). It establishes an allocation limit for each participant, granting holders the privilege of early access to paraUSDs through a private, permissioned pool. This early access mechanism allows paraSBT holders to potentially achieve higher returns by being among the first liquidity providers to the pool. This early access allows soulbound token holders to achieve higher returns by being the first liquidity providers.

To participate in the initial liquidity pool, paraSBT owners are required to supply additional stablecoins —specifically, USDC—as a prerequisite for swapping to paraUSDs.

The distribution of paraSBT tokens follows a first-come, first-served principle, supplemented by an allocation formula that considers the wallet's current value or its historically adjusted highest value and transaction volume.

This dual approach aims to reward early participants while ensuring a fair distribution based on active engagement and investment in the ecosystem. Each wallet is subject to a cap of 100,000 paraSBTs to prevent dominance by a few and promote equitable access.

This method aims to fairly balance rewards between current market value and past activity levels, incorporating a maximum allocation limit to promote fairness.

The Genesis release of paraSBT is set at 10,000,000 tokens, with each paraSBT + one USDC being exchangeable for one paraUSD.