SOFA.org
About
SOFA.org is a decentralized non-profit organization building a trustless settlement foundation for financial assets on-chain. It offers structured products (Earn and Surge) where users can purchase options-like products from market makers, with assets held in on-chain vaults to eliminate counterparty risk. The protocol uses Position Tokens (ERC-1155) for risk replication and capital efficiency across DeFi and traditional finance.
Where Does Yield Come From?
How SOFA.org generates yield
Users deposit assets like USDT into structured products (called Earn and Surge) to buy option-like contracts from market makers. Think of these as bets on whether an asset's price will stay within a range, go up, or go down.
For the safer Earn products, here's how it works:
- Deposited funds are first lent out through the Aave lending protocol to earn a steady, passive return.
- Part of that return is kept as a base yield — a guaranteed minimum.
- The remaining portion is used to buy options strategies, which can boost earnings if the market moves the right way.
Payouts depend on how the underlying asset's price behaves compared to preset price levels (called barriers or strikes).
Fees and token buybacks
- SOFA charges a 15% fee on the option premium (the price paid for the contract) as a base trading fee.
- If a user wins their bet, an extra 5% settlement fee is taken from the gross payout.
- All fees collected by the protocol are used every day to buy back and burn the native utility token $RCH. This reduces the total supply over time (a deflationary model).
User rewards Users also receive $RCH token airdrops based on how much they trade — more volume means more rewards, aligning user and protocol interests.
How market makers and safety work Market makers lock up their collateral in on-chain vaults (smart contract storage). Payouts are settled automatically by the smart contracts, so there's no counterparty risk — neither side can cheat or fail to pay.
Persons
Augustine Fan
Founding Partner
LinkedIn
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Code4rena (Zenith)15-05-2024 - 27-05-2024 |
| The audit uncovered three high-severity vulnerabilities, all of which were resolved, along with multiple medium and low issues that have been largely fixed or acknowledged, indicating a responsible security posture and mitigation of critical risks prior to launch. |
PeckShield28-04-2024 |
| The audit found no critical or high severity vulnerabilities, with all identified medium and low issues promptly resolved, indicating a well-structured codebase and responsive development team. |
SigmaPrime11-06-2024 |
| Sigma Prime's audit uncovered two critical vulnerabilities that were resolved before launch, alongside several medium and low severity issues, resulting in a reasonably secure codebase after fixes. The protocol team addressed the most severe findings and acknowledged remaining lower-risk items. |
Zenith (Code4rena)17-10-2024 - 25-10-2024 |
| The audit uncovered significant security flaws in the Automator contract, but all high-severity issues were resolved and the remaining medium risk was acknowledged with a mitigation plan, leaving the system in a secure state post-fixes. |
Zenith (Code4rena)08-01-2025 - 14-01-2025 |
| The audit found only low-risk issues, with three resolved and one acknowledged, indicating a generally secure implementation with minor edge-case concerns addressed. |
yAudit20-01-2025 - 24-01-2025 |
| The audit revealed a critical vault-draining vulnerability that was fixed, but the codebase lacks comprehensive testing and contains several medium- and low-severity issues that require attention for robust security. |
Backers
SOFA.org's documentation lists "DAO Members and Supporting Members as of Early May 2024," which includes a range of venture capital firms, ecosystem partners, and infrastructure providers. The partner logos displayed include: Galaxy, X VENTURES, Coincall, HashKey Capital, SignalPlus, Chainlink, Arbitrum, Linea, Lido, SNZ, Connect to Empower, Chiron, GBV, Stratified Capital, Baboon VC, Arcane, BlockBooster, MNER Club, Big Candle Capital, 3lockScholes, SpyRE Capital, OKX Wallet, ocular | Openspace, Avenir Capital, 未來資本 (Future Capital), Hivemind, and BlackPine. No specific funding rounds, investment amounts, or dates are disclosed in the official materials. The protocol emphasizes a 100% fair‑launch tokenomics model where "no one – not the team, not VCs, not specialized privileged groups – will have ownership of any utility tokens at launch."
Legal
Status and notes
SOFA.org presents itself as a decentralized, non‑profit, open‑source technology organization operating as a DAO. No legal entity name, registration number, or jurisdiction is disclosed in the official documentation. The footer states '© 2024 sofa.org All Right Reserved.' Contact email: [email protected].