# Overview
**Selenium** is a decentralized finance (DeFi) protocol built on the Terra Classic network, leveraging smart contracts to facilitate the creation of synthetic assets, known as Selenized Assets. These synthetic assets closely replicate the price movements of real-world assets, allowing global traders to gain price exposure without the need to physically own or transact with the underlying assets.
The minting of Selenized Assets is a fully decentralized process, carried out by users across the network through the opening of positions and the deposit of collateral. Selenium guarantees that sufficient collateral is always maintained within the protocol to back the issuance of Selenized Assets, ensuring their stability. Additionally, the protocol manages the liquidity and trading of these synthetic assets by listing them on Terraport, where they are traded against LUNC.
The native governance and utility token of the protocol, SELE, is minted by Selenium and distributed as an incentive to users who contribute to securing and stabilizing the ecosystem. Specifically, SELE rewards are given to users who provide liquidity and stake LP tokens, thereby ensuring liquidity for Selenized Asset markets. SELE holds intrinsic value within the ecosystem, as it can be used to gain voting rights in the protocol’s governance process.
Selenium is a community-driven project, with the protocol’s markets and liquidity sustained through SELE incentives. The evolution of the protocol is governed democratically, allowing its users to propose and vote on new ideas, ensuring that the system continuously adapts and improves in line with community needs and innovations.
# Security
The security of the Selenium protocol is our highest priority. Our development team, alongside third-party auditors and consultants, has dedicated significant effort to building a protocol that we believe is both secure and reliable. All code and contract balances will be publicly verifiable, and we welcome responsible security researchers to identify and report undiscovered vulnerabilities.
***
### KYC
* The Selenium team has completed the [KYC](https://app.solidproof.io/projects/selenium-protocol)[ process](https://app.solidproof.io/projects/selenium-protocol) through the SolidProof company.
***
### **Audits and Reviews**
* Selenium contract security audit is running.
# FAQ
1. What are Selenized Assets?
The aim of Selenized Assets is to mimic the price trends of real-world exchange-traded underlying assets and give investors access to not only home markets but also foreign markets as well. While sGOLD tries to closely represent the movements of GOLD, users are not afforded any rights of the underlying asset and tracking errors may arise due to the imbalances in trading volume in the underlying markets and the Terraport markets.
2. How are Selenized Assets actually traded?
Selenized Assets are traded through interacting with liquidity pools on Terraport. For more information about the mechanism of Terraport, please see [here](https://terraport.gitbook.io/terraport-docs/how-to/swap).
3. Do I have to go through the KYC process?
Selenium aims to be decentralized in all aspects including whitelisting, governance, minting, and trading. As a result, as long as you have USTC balance, you are able to perform all functions available on both the Selenium protocol as well as Selenium protocol-owned Terraport pools without any need to go through a KYC process.
4. How are dividends handled?
Given that Selenized assets do not confer any rights of the underlying asset, Selenized assets do not give dividends.
5. What are the trading commissions composed of?
There is a fixed fee called the LP commission is 0.30% which serves as a reward for liquidity providers for Selenium-related pools on Terraport. More detailed information can be found [here](https://terraport.gitbook.io/terraport-docs/how-to/swap#standard-trading-fees).
6. What does it mean to mint a Selenized Asset?
All Selenized Assets that are purchased or sold on Selenium were, at one point, minted. Minting is the process of providing collateral to issue a “synthetic” Selenized Assets.
Price oracles play an important role in the minting process and are used for two key functions: First, they help determine the amount of collateral required for minting a Selenized Asset. Second, they help determine whether sufficient collateral is backing existing Selenized Assets.
For example, assume that a minter provided $150 worth of collateral to issue a Selenized Assets worth $90 and that the minimum collateral ratio (MCR) is 150%. If the asset’s value increases to $101, then the collateral ratio would be 149% ($101/$150) and would fall below the MCR.
When this happens, the Selenium protocol will seize a portion of the collateral and initiate an auction for anyone willing to sell the Selenized Asset in exchange. To incentivize this liquidation, the Selenium protocol allows anyone to purchase this seized collateral at a discount until the collateral ratio reaches the MCR again. In the example, using the collateral supplied, users will be able to send Selenized Assets tokens in exchange for discounted collateral until the collateral ratio reaches 150% again. If, for instance, the asset price increases again, then the process repeats itself until the collateral ratio reaches 150%.
# How To
Complete Guide to the Selenium Protocol
Welcome to the world of synthetic finance! This unified guide will provide you with all the necessary information to use the Selenium protocol, from the basics to the most advanced strategies, including earning opportunities and risks.
#### 1. The Basics of the Protocol
Selenium is a decentralized platform that allows you to create and trade synthetic assets (sAssets), replicating the value of real-world assets. To operate, you can take on different roles:
* Minter: Borrows and creates new sAssets.
* Trader: Buys and sells sAssets for a profit.
* Liquidity Provider: Makes their assets available to facilitate trades.
* Staker/Farmer: Secures the protocol to earn rewards.
***
#### 2. Step-by-Step Guide to Using the Platform
**Step 1: Preparation and Connection**
* Get the assets: You'll need crypto assets (e.g., USDC, LUNC, USTC) to get started. Store them in a wallet compatible with the Terra Classic network.
* Connect to the dApp: Access the Selenium web platform and click "Connect" in the top right corner to link your wallet.
**Step 2: Choose Your Earning Strategy**
Your journey in the protocol depends on how you want to earn. The four main paths are:
* Minting: If you want to create an sAsset.
* Trading: If you want to earn from price fluctuations.
* Liquidity Providing: If you want to earn fees and rewards by providing liquidity.
* Staking or Farming: If you want to earn rewards by securing the protocol.
***
#### 3. Your Activities and Earning Methods
**If You Want to Mint:**
Minting an asset on the Selenium Protocol isn't just buying it; it's becoming the very source of the asset. By depositing collateral, you can create it at the price determined by the oracle, which is often more advantageous than the market price. You can then use it however you prefer: resell it for arbitrage, hold it for direct exposure, or even sell it immediately to bet on a price drop of the underlying asset.
This operation opens the door to strategies that wouldn't be possible with just buying from a pool, such as shorting (mint → sell → repurchase at a lower price) and participating in liquidation auctions. In essence, minting gives you more control and more earning options: you go from a simple buyer to an active player in the system, capable of exploiting all the opportunities the protocol offers.
* How to do it: Access the "Mint" section, choose the sAsset, deposit the collateral, and set your collateralization ratio (it's recommended to set it higher than the minimum, e.g., 170%, to avoid the risk of liquidation).
**If You Want to Trade:**
This is the simplest path for a user who wants to trade sAssets.
* How to do it:
* Long: buy the sAsset (e.g., sGOLD) on Terraport and hold it in your wallet as if it were the underlying asset; you can sell it whenever you want.
* Short and Arbitrage: when the price in the pool is above the oracle's price (at a premium), you can short indirectly by minting the sAsset and selling it in the pool. You then buy it back when the price drops to close your CDP. If you don't want to mint, you can also speculate just on the premium returning to normal by buying/selling sAssets where there is a divergence between the pool and the oracle.
* Practical tips: Monitor the premium/discount between the pool price and the oracle price. A large portion of the profit opportunities in spot trading on Selenium comes from these divergences, not just from the direction of the underlying asset.
**If You Want to Farm on Synthetic Pairs:**
Farming on the Selenium Protocol involves providing liquidity to a trading pool composed of an sAsset and USDC. In return, you receive LP tokens that you can stake to get rewards in SELE, LUNC, USTC, and USDC, plus trading fees from Terraport.
* How to do it: In the "Farm" section, select a trading pair (e.g., sAsset-USDC). Enter the amount you want to provide into the **Autostake** form. The system will **automatically** perform all the necessary operations, and you'll **immediately** start earning interest.
**If You Want to Farm on the SELE Pair:**
This type of farming allows you to earn by contributing to the liquidity of the governance token.
* How to do it: In the "Farm" section, provide liquidity to the SELE/LUNC trading pair. In exchange, you receive LP tokens that you can stake in the farm on Terraport or Selenium.
* Earnings: By staking your LP tokens, you get two types of rewards:
* A portion of the pool's trading fees.
* Additional rewards in LUNC tokens.
**If You Want to Stake SELE Tokens:**
This activity allows you to earn by directly locking the governance token.
* How to do it: In the "Earn" section, lock your SELE tokens.
* Earnings: By staking SELE tokens, you get rewards in USTC tokens.
***
#### 4. Advanced Strategies and Extra Earnings
* Liquid Staking: Liquid stake LUNC on Terraport to get bLUNC. Use it as collateral to mint an sAsset and then farm it. This way, you earn from both native LUNC staking and from farm rewards (SELE tokens and the pair's APR).
* Liquidation Auctions: You can buy the collateral of a liquidated position with a 10% discount from the Auction section. To do this, you must return the equivalent sAsset.
* Example: User A mints $1000 of sGOLD, providing $1500 in USDC as collateral. The value of sGOLD rises, bringing the collateralization to 149%. The position enters the liquidation phase. Anyone who returns $900 of sGOLD will receive $1000 in USDC in exchange, making an immediate 10% profit.
* Arbitrage: Exploit the price differences between the oracle and the pool on Terraport.
* If the pool price is lower: Buy the sAsset at a lower price and sell it to close a CDP position you have, keeping the difference as profit.
* Example: If the oracle says the price of sGOLD is $150, but on the Terraport pool it's $145, you can buy sGOLD at $145 and close a CDP position you opened at $150, earning $5 for each sGOLD.
* If the pool price is higher: Mint an sAsset and sell it at a price higher than the oracle's.
* Example: If the oracle says the price of sGOLD is $150, but on the Terraport pool it's $155, you can mint sGOLD at $150 and sell it immediately for $155, making a profit of $5 for each sGOLD.
***
#### 5. Risks to Know
* Liquidation Risk: If the value of your collateral drops below 150%, your position can be liquidated. After one hour, it will automatically be placed in the Auction section to be purchased by other users with a 10% discount. To minimize this risk, it is recommended to mint assets with a collateralization ratio higher than the minimum.
# Protocol Participants
In Selenium Protocol, users act in one or more of the following roles:
* Trader
* Minter
* Liquidity Provider
* Staker
### Trader
A **trader** engages in buying and selling Selenized Assets against approved collaterals through [Terraport](https://terraport.finance) and benefits from price exposure and arbitrage opportunities.
### Minter
A **minter** is a user that enters into a **collateralized debt position** (**CDP**) in order to obtain newly minted token of a Selenized asset. **CDPs** can accept collateral in the form of **LUNC**, **Selenized assets**, or any **whitelisted collateral** and must maintain a collateral ratio above the Selenized asset's minimum multiplied by a premium rate for each collateral type (set by **governance**).
Excess collateral can be **withdrawn** as long as the CDP's collateral ratio remains above the **minimum**. Minters can adjust the CDP's collateral ratio by burning Selenized asset or depositing more collateral.
### Liquidity Provider
A **liquidity provider** adds equal amounts of a **Selenized asset** and **LUNC** to the corresponding [Terraport](https://terraport.finance/trade) pool, which increases liquidity for that market. This process rewards the liquidity provider newly minted **LP tokens**, which represent the liquidity provider's share in the pool and also provide rewards from the pool's trading fees. LP tokens can be burned to reclaim the share of Selenized asset and LUNC from the pool.
### Staker
A **staker** is a user that stakes either LP tokens (with the Staking Contract) or Selenium tokens in order to earn staking rewards as Selenium tokens. Stakers earn rewards from new Selenium tokens from inflation.
LP Tokens can be unstaked at any time.
# Synthetic Assets (Selenized)
Selenized assets are blockchain tokens that behave like "mirrored" versions of real-world assets by reflecting the exchange prices on-chain. Selenized assets give to traders the price exposure to real assets while enabling fractional ownership, open access and censorship resistance as any other cryptocurrency.
{% hint style="info" %}
Unlike traditional tokens which serve to represent a real, underlying asset, Selenized Assets are purely synthetic and only capture the price movement of the corresponding asset.
{% endhint %}
### Properties
A Selenized asset can be described by the following properties:
### Minimum Collateral Ratio and Multiplier
A CDP that mints the Selenized asset have a collateral ratio below **minimum collateral ratio** times the **multiplier** parameter, lest it be subject to liquidation through auction. A multiplier is a parameter assigned to each asset type that could be used as collateral to open a CDP and is multiplied to the minimum collateral ratio of the minted Selenized asset to determine the final minimum collateral ratio for the given position.
### Auction Discount Rate
For a CDP subject to liquidation, describes the discount for which its collateral can be purchased by paying the minted amount for the position. Auction discount applied during the liquidation process is the lower value between *`minimum_collateral_ratio` - 1, or `auction_discount` parameter.*
### Price
The current registered price as reported by the Oracle. This is mainly used for determining collateral ratio for CDP and does not affect the Selenized asset's trading price on [Terraport](https://terraport.finance/) directly.
Prices are only considered valid for 58 seconds. If no new prices are published after the data has expired, Selenium will disable CDP operations like mint, burn, deposit and withdraw until the price feed resumes.
For instance, the price feed is halted when real-world markets for the asset are closed. This does not affect the ability to trade on the asset's [Terraport](https://terraport.finance/trade) pool.
# Mint Selenized Assets
#### Collateralized Debt Position
New tokens for a listed Selenized Asset can be minted by creating a **collateralized debt position** (CDP) with either $LUNC, $USTC, $USDC, $bLUNC, sAsset or any **whitelisted** collateral tokens as collateral. The CDP is essentially a short position against the price movement of the reflected asset, -- i.e. if the stock price of sGOLD rises, minters of sGOLD would be pressured to deposit more collateral to maintain the same collateral ratio.
### Collateral
Selenium Protocol accepts the following types of tokens as collateral:
* USTC
* All Selenized Assets
* Other collateral: LUNC, bLUNC, USDC, TERRA
| Asset | Multiplier |
| ----- | ---------- |
| USDC | 1.15 |
| LUNC | 1.3333334 |
| bLUNC | 1.3333334 |
| USTC | 1.3333334 |
| TERRA | 2.5 |
Each type of asset listed above has a different **`multiplier`** (**`ζ`**) which is multiplied to the minimum collateral ratio of each minted Selenized Asset.
For example, if bLUNC, which has a collateral premium of 1.333334, is used as collateral to mint sGOLD, which has a minimum collateral ratio of 150%, then the minimum tolerated collateral ratio for this position will be 1.3333334 × 150 % ≈ 200%. Any price change of either bLUNC or sGOLD which causes collateral ratio drop to below 200% will lead to liquidation auction.
#### Collateral Ratio
The **collateral ratio** (C-ratio) is simply the ratio of the value of a CDP's locked collateral to the value of its current minted tokens.
The CDP is required to always maintain a **C-ratio** above the position's **minimum**, otherwise the protocol will initiate a **margin call** to **liquidate collateral**. The protocol is able to determine whether a position is underneath the required threshold by re-denominating all Selenized Assets values into **USTC** via their oracle-reported prices.
Let the Selenized Asset's minimum C-ratio and collateral's multiplier be each **`r_{min}`** and **`ζ`**. Given a CDP's current quantities of collateral and minted Selenized Asset **`Q_c`**, **`Q_m`** and their current prices **`P_c`**`,` **`P_m`** the effective collateral ratio at any time tt is:
$$
r\_t = \frac{P\_m Q\_m}{P\_c Q\_c}
$$
A CDP should strive to always maintain **`r_t ≥ ζ r_{min}`**, otherwise the collateral will be subject to liquidation.
**Opening a new position**
Users are allowed to set the initial C-ratio for their CDPs as long as it meets or exceeds the mandated minimum value for each position. The selection of the initial C-ratio **`R_0`** along with the choice of collateral is used to determine how many tokens are minted during the creation of a CDP.
$$
Q\_m = \frac{r\_0 P\_m}{P\_c Q\_c}
$$
**Depositing / withdrawing collateral to position**
With an existing CDP, the user can deposit additional collateral **`Q'c`** to raise its effective C-ratio. The total amount of potential mintable Selenized Assets tokens is then increased by the marginal value **`Q'm`**.
**`Q'c`** can be negative, which is equivalent to withdrawing collateral. The user can only withdraw up to however much is needed to maintain the Selenized asset's effective C-ratio above the **`ζ r_{min}`**. The user will receive `Q_{c} - fee protocol` upon withdrawal due to the protocol fee.
$$
( Q\_m + Q\_{m}) = \frac{\zeta r\_{\text{min}} P\_m}{P\_c (Q\_c + Q\_{c}')}
$$
**Minting / Burning Selenized Assets**
In addition to depositing and withdrawal collateral, the user can also mint and burn Selenized Asset against the CDP to adjust the value of their CDP's effective C-ratio.
Let the quantity of newly minted tokens be **`Q'm`**(negative if burned). The minimum collateral required to keep the CDP position above the Selenized asset's min. collateral ratio is:
$$
( Q\_c \geq \frac{P\_c \zeta r\_{\text{min}} P\_m (Q\_m + Q\_{m}')}{Pc} \
$$
Anything above that amount can be withdrawn from the CDP.
#### **Closing a position**
If a user wishes to collect all their collateral from their CDP, they must close their position by returning the outstanding balance of minted Selenized Asset, which the protocol will burn. A user must first hold the corresponding amount of Selenized Asset to close CDP. The user will then be able to withdraw their locked collateral minus the protocol fee.
#### Selenium Protocol Fee
2.5% is charged whenever a withdrawal from a CDP is made (including position closure and liquidation auction). The protocol fee is calculated based on the value of the Selenized Asset at the burning of minted asset. This fee is then sent to the Collector contract, converted into SELE through Terraport and distributed.
#### Margin Call & Auction
Maintaining a lower C-ratio allows users to mint more Selenized Assets tokens for less collateral, but obviously does not come without its risks. A CDP can be **margin called** when it falls below the min. collateral ratio. At this stage, if the owner does not quickly act and deposit more collateral or burn Selenized Assets to deleverage their position, other users may purchase their CDP's collateral at a discount.
The protocol will try to raise the CDP's C-ratio by burning Selenized Asset it recovers from liquidating its collateral. Let **`a`** be the amount of the Selenized Asset paid (up to the amount minted by the CDP) and **`d`** be the Selenized Asset's **auction discount rate.** The buyer can expect to receive:
$$
( \min\left( \frac{a}{1 - d} \times \frac{P\_m}{P\_c}, Q\_c\right)
$$
The remainder of the collateral not sold is returned to the CDP's owner.
The auction process continues until either the CDP's C-ratio is restored to a level above the Selenized Asset 's minimum collateral ratio or the quantity of minted Selenized Assets is completely burned, which closes the position. Because this provides almost risk-free profit, participants are incentivized to liquidate the entire margin-called position when possible to maximize their profits.
**Example:**
To illustrate, let sXXX be priced at 1 USTC, and sYYY at 2 USTC. Assume that both assets have a min. collateral ratio of 150% and an auction discount rate of 20%. A user has opened a CDP to mint 100 sXXX at the C-ratio of 150%, depositing 75 sYYY as collateral.
If the CDP is being liquidated with the auction participant paying 100 sXXX to totally liquidate the position, one should receive:
$$
\min\left( \frac{100sXXX}{1 - \text{0.2}} \times \frac{1 \text{ USTC/sXXX} \text{}}{2 \text{ USTC/} \text{sYYY}}, 75sYYY \right)
$$
Working over the math, one should receive 62.5 sYYY tokens, totaling 125 USTC, making a 25% profit. The CDP owner would receive the remaining 12.5 sYYY.
Note that the owner would still retain his 100 sXXX, meaning along with the 12.5 sYYY they would keep around 125 USTC of value out of their initial 150 USTC deposit.
To avoid liquidation, users should aim for a C-ratio that factors in the known price dynamics of the reflected asset. A safety buffer of at least 50% above the Selenized Asset's minimum is usually recommended. Users with open positions should actively monitor price activity that threaten the safety of their CDP and respond accordingly either by burning Selenized Assets (or closing the position altogether), or deposit more collateral to reduce the possibility of liquidation.
# Selenized Assets Lifecycle
### Whitelisting
The process of **whitelist** a Selenized Asset is to register it with Selenium Protocol, which involves several operations, including:
* creating the Selenized Asset token and assigning its oracle
* creating the SelenizedAsset-LUNC trading pair on Terraport and its LP token
* registering the new Selenized Asset with all relevant Selenium Contracts
Whitelisting is approved by governance and is automatically implemented if the whitelisting proposal receives enough votes. Once a Selenized Asset has been whitelisted, it will be mintable through opening a CDP and tradeable on Terraport. In addition, LP tokens for the corresponding Terraport pool will begin to earn Selenium inflation rewards when staked.
### Delisting and Migration
In situations where the tracked asset undergoes a corporate event such as a stock split, merger, bankruptcy, etc. and becomes difficult to reflect properly due to inconsistencies, a Selenized Asset can be **delisted**, or discontinued, with the following migration procedure initiated by the oracle:
1. New replacement Selenized Asset token, Terraport pair, and LP tokens contracts are created, and the present values of properties of Selenized Asset will be transferred over
2. The oracle feeder sets the `end_price` for the sAsset to the latest valid price
3. The Selenized Asset's min. collateral ratio is set to 100%
At this stage:
* CDPs may no longer mint new tokens of the Selenized Asset
* Liquidation auctions are disabled for the Selenized Asset
* Burns will take effect at the fixed `end_price` for withdrawing collateral from any existing mint position.
* LP tokens for the sAsset will stop counting for staking rewards
Delisting will not directly affect the functionality of the Selenized Asset's Terraport pool and users will still be able to make trades against it, although price is likely to be very unstable. Users are urged to burn the Selenized Asset to recover collateral from any open positions on Selenium Protocol, including their own.
Since anyone can burn against any open position, CDP holders may end up having no or less amount of "borrowed assets" within their position, but they will still be able to withdraw the remaining amount of collateral by only burning the remaining amount of delisted Selenized Asset. Opening a new CDP / engaging in liquidity provision can be done with the new, replacement Selenized Asset.
The old Selenized Asset will be retired and marked as `delisted` only allowing burn, close CDP, withdraw collateral and liquidity, and unstake LP transactions on front-end interfaces.
# Selenium Token (SELE)
The **Selenium Token ($SELE)** is Selenium Protocol's governance token. It must be used to vote on active proposals and is required as a deposit for making new governance proposals. In future iterations of Selenium, it will serve further purposes for the protocol that increase its utility and value.
Initially:
* Users who **stake $SELE** tokens earn rewards in **$USTC.**
* Users who **provide liquidity (LP)** to the **$SELE/$LUNC** pair will receive rewards in **$LUNC** from the dedicated **farm**.
Subsequently, with the launch of the protocol on mainnet, they will earn rewards in $SELE.
**Selenium Token** is also used to incentivize users to farm yields by staking LP tokens which were minted by providing liquidity for **$SELE** and **Selenized Assets (sAsset)**. Yield is paid to the users from $SELE that are newly minted through annual inflation, which gradually increases the total supply of $SELE until the end of distribution period.
## Selenium Token Supply
Selenium Token ($SELE) built on a blockchain have set up algorithmically created release schedules. This means we can accurately predict how many coins will be made by a specific time.
There are planned to be a total of **43,575,485 SELE** tokens to be distributed over 4 years. Beyond that, there will be no more new $SELE tokens introduced to the supply.
## Distribution Schedule (Token per Year)
Genesis
1st Year
2nd Year
3rd Year
4th Year
preSELE Airdrop
709,885
-
-
-
-
preSELE Reward
-
2,073,600
1,036,800
518,400
259,200
Launchpad Airdrop
50,000
-
-
-
-
sAsset Lp Staking
-
5,110,400
2,332,800
1,555,200
777,600
Staking Rewards
-
2,555,200
1,296,000
1,036,800
777,600
Development
-
2,592,000
1,555,200
1,036,800
777,600
Liquidity
2,500,000
2,073,600
1,555,200
1,036,800
518,400
Marketing & Listing
3,000,000
2,073,600
1,555,200
1,036,800
518,400
$SELE Supply
6,259,885
24,394,685
33,725,885
39,946,685
43,575,485
Annual Inflation (%)
-
127.47%
47.27%
21.40%
10.28%
***
## Genesis Token Distribution
Total of **6,259,885** tokens are available at Genesis of Selenium Protocol. The distribution of these tokens will be made as below:
* **preSELE airdrop**: 11.34% (709,885) tokens will be airdropped to preSELE partecipants.
* **Launchpad Airdrop**: 0.80% (50,000) tokens will be airdropped to all Launchpad participants.
* **Marketing & Listing**: 47.92% (3M) tokens will be allocated to Marketing and Listing reserve address.
* **Liquidity**: 39.94% (2.5M) tokens will be used for initial and future liquidity.
{% hint style="info" %}
***Until the protocol launches on mainnet, no new tokens will be minted.***
{% endhint %}
***
## Dynamic Emission Schedule
Tokens emission will occur block by block, in ascending order over the first 4 years:
* **1st Year:** 2.60 $SELE per block
* **2ndYear:** 1.80 $SELE per block
* **3rd Year:** 1.20 $SELE per block
* **4th Year:** 0.70 $SELE per block
### Emission Program (Token per Block)
1st Year
2nd Year
3rd Year
4th Year
sAsset Lp Staking
0.60
0.45
0.30
0.15
Marketing & Listing
0.40
0.30
0.20
0.10
Development
0.50
0.30
0.20
0.15
preSELE Rewards
0.40
0.20
0.10
0.05
Staking Rewards
0.30
0.25
0.20
0.15
Liquidity
0.40
0.30
0.20
0.10
Total
2.60
1.80
1.20
0.70
{% hint style="info" %}
***All further changes to the distribution of $SELE tokens per block will only be made via Governance voting.***
{% endhint %}
***
## Final Token Distribution
Total supply of SELE tokens will increase for 4 years due to inflation, until the total token supply becomes **43,575,485**.
The distribution structure at the end of year 4 will look like the below:
* **preSELE Airdrop**: The airdrop amount which was originally allocated to preSELErs, will now account for 5.43% (2,366,285) of the total token supply.
* **Launchpad Airdrop:** The airdrop amount allocated to Genesis to all launchpad participants will represent 0.11% (50,000) of the total token supply at the end of the distribution.
* **Staking Rewards:** 13.00% (5,665,600) tokens will be distributed to all stakers and governance participants
* **preSELE Rewards**: 8.92% (3,888,000) tokens are distributed to respective preSELE holders.
* **Development**: 13.68% (5,961,600) tokens will be distributed and used for the continuous development of the protocol.
* **sAsset LP Staking**: 22.43% (9,776,000) tokens are distributed to all sAsset staking pools by the end of year 4. Tokens are distributed daily to each staking pool based on their allocation point compared to other assets.
* **Marketing & Listing:** 18.78% (8,184,000) tokens will be distributed in the marketing address and will be used for advertising campaigns, partnerships and future CEX listings.
* **Liquidity**: 17.63% (7,684,000) of total $SELE supply will be distributed to liquidity reserve by the end of year 4.
***
**Distribution Rate (Inflation)**
Inflation rate of $SELE tokens are designed to gradually decrease every year until it reaches **43,575,485** at the end of year 4. After the end of year 4, no more $SELE tokens will be minted through inflation.
## Token Vesting
Tokens purchased during the presale **will not be fully locked** for the entire **13 months**. Instead, they will follow a structured unlocking schedule:
**At launch (Token Generation Event - TGE): 30%** of your purchased tokens will be **immediately available**.
**Following a 3-month cliff period, the remaining 70%** will be released daily in small increments over the subsequent **10 months**, ensuring consistent access to your tokens throughout the vesting period.
This approach allows token holders to access a portion of their tokens immediately, while gradually receiving the rest over time.
## **Staking and LP Rewards before mainnet protocol launch**
Selenium token holders who decide to lock their **$SELE** tokens in **staking** will receive rewards in **$USTC.**
Selenium token holders who decide to **provide liquidity** to the **$SELE/$LUNC** pair will receive rewards in **$LUNC** from the dedicated **farm.**
## **Staking Rewards & Buyback after mainnet protocol launch**
Selenium token holders who decide to lock their $SELE tokens receive rewards in the following methods:
* For each block, $SELE tokens will be distributed to all stakers ([see Staking Rewards in the table](#emission-program-token-per-block)).
* All [protocol fee](/protocol/mint-selenized-assets#protocol-fee) generated by Selenium are exchanged into $LUNC from the CDP collateral and sold to buy $SELE via Terraport after being sent to the Collector contract. $SELE tokens are then distributed as rewards to $SELE stakers and voters in proportion to the percentage of the total stake. This process balances the generation of new $SELE by creating buying pressure.
# PreSELE
### *Don't miss the opportunity to own $SELE tokens, the governance token of the Selenium Protocol, at an exclusive price before the official launch!*
The *preSELE* will be divided into three phases, with an initial quantity of [25,000,000 tokens available](broken://pages/K9w7qh1LCGFMMm7hZiDe); each phase will have a predetermined duration and the next one will have an increasing price.
You will be able to **earn 5%** **on all purchases** made through your referral link and also receive an exclusive benefit of **7.18% guaranteed for 4 years** as a founding member of the protocol.
Here are the details of the three phases of the pre-sale:
#### **Phase 1:**
* **Tokens Available:** 25,000,000 [$SELE](broken://pages/K9w7qh1LCGFMMm7hZiDe#selenium-token-supply)
* **Price:** $0,09 per token
* **Start:** January 10, 2025
* **End:** February 9, 2025
#### **Phase 2:**
* **Tokens Available:** 234 [$SELE](broken://pages/K9w7qh1LCGFMMm7hZiDe#selenium-token-supply)
* **Price:** $0,10 per token
* **Start:** February 17, 2025
* **End:** March 17, 2025
#### **Minimum Goal to start (Soft Cap):** $250,000
#### **Launch Price:** $0,20
#### **Pair** that will be made **available**: $**SELE****/****$USTC** with **0,3%**** fee**
### **Accepted Currencies:**
LUNC - USTC - USDT (BEP20) - USDC (BEP20)
### **Token Vesting**
Tokens purchased during the pre-sale will not be completely locked for the entire 7 months. Instead, they will follow a structured unlocking schedule:
At launch (Token Generation Event - TGE): 30% of your purchased tokens will be immediately available.
Over the next 7 months: The remaining 70% will be released daily in small increments, ensuring consistent access to your tokens throughout the vesting period.
This approach allows token holders to access a portion of their tokens right away while gradually receiving the rest over time.
### **Exclusive *****extra***** Benefit for *****preSELE***** participants!**
**Only *****preSELE***** participants** will be entitled to receive an **extra guaranteed percentage** equal to **7.18% of** [**$SELE**](broken://pages/K9w7qh1LCGFMMm7hZiDe#final-token-distribution) **tokens from the** [**final distribution**](broken://pages/K9w7qh1LCGFMMm7hZiDe#final-token-distribution) (**7.77 million $SELE,** if all presale tokens are sold) claimable **daily** for a period of **4 years** starting from the launch of the protocol on the Terra Classic mainnet.
The *preSELE* offers a unique opportunity to become part of the Selenium project from its initial stages, obtaining the $SELE token at a special price and benefiting from exclusive advantages reserved for early supporters.
### **Referral Program - Earn 5%!**
Invite your friends to participate in the $SELE pre-sale and earn 5% on all their purchases! Here's how it works:
1. **Get your referral link:** (available from January 10, 2025 via the presale link)
2. **Share your link:** Promote *preSELE* and share your referral link with friends, family, and on your social channels.
3. **Earn 5%:** You will receive 5% of the amount spent in $SELE by anyone who purchases tokens using your link. Referral commissions will be distributed together with the tokens sold, following the same procedures.
### **Why participate in the $SELE pre-sale?**
* **Advantageous Price:** Buy $SELE at a lower price than the expected launch price.
* **Early Access:** Become one of the first holders of $SELE and actively participate in the governance of the Selenium protocol.
* **Support the Project:** Contribute to the development and growth of the Selenium ecosystem.
* **Financial Incentives:** Obtain a passive return for 4 years (guaranteed) as a founding member of the protocol.
* **Earn with the Referral Program:** Get 5% commission on purchases made through your link!
### **How to participate:**
Connect to the [selenium.finance](https://www.selenium.finance/) website to receive updates and to get your referral link.
### **Airdrop:**
Tokens resulting from purchases or launchpad will be sent to the respective wallets before the launch of the project on the Terra Classic mainnet.
Unsold tokens will not be minted, and the tokenomics will be redefined proportionally.
**Don't miss this opportunity! Join the Selenium community and participate in the *****preSELE***** of the $SELE token!**
**Note:** All updates will be officially communicated on the social channels of the Selenium Protocol. Be sure to follow us to stay updated!
Telegram:
X (Twitter):
# Staking Tokens (LP)
**LP Tokens** are given to Liquidity Providers when they add liquidity to SelenizedAssets-LUNC or SELE-LUNC Terraport pools. Each pool has a unique LP token associated with it and cannot be combined with LP tokens from other pools. They serve primarily as a unit of account, representing the liquidity provider's share in the pool in order to reclaim assets when they remove liquidity.
Although LP tokens exist independently as a yield-generation feature of Terraport, they are central to Selenium's market infrastructure. As such, the protocol provides SELE rewards to users who stake LP tokens as an incentive to help maintain liquid markets on Terraport for Selenized Assets and SELE.
{% hint style="info" %}
There exists a different LP token for each SelenizedAsset-LUNC's Terraport pool, as well as the SELE-LUNC pool. The descriptions below refer to each individual pool's supply of LP tokens.
{% endhint %}
## Minting
A user can provide liquidity by depositing tokens to both sides of a Selenium-related Terraport pool. This results in the creation of LP tokens for that pool, which they can use to retrieve assets from the pool.
## Burning
{% hint style="warning" %}
It is very probable that the amounts of assets recovered by burning LP tokens will be different from the quantities deposited. This comes from a variety of reasons such as price movement of Selenized Assets / SELE, changes in your relative share of the liquidity pool, etc.
{% endhint %}
A user can burn their LP tokens to recover their deposited liquidity. The pool will send back amounts of USTC and Selenized Assets (or SELE), depending on the amount of LP tokens they burn.
## LP Commission Rewards
Holders of LP tokens receive a portion of rewards generated by the pool's trading fees, divvied out in proportion to total share of LP token pool. A portion of either Selenized Assets/SELE or LUNC (depending on the direction of the trade) gets added back into the pool as the **LP Commission.**
This functionality is not implemented in the Selenium Protocol contracts, and comes purely due to Terraport incentive structure for liquidity providers. Because the trading fee rewards are returned to the pool, they can only be withdrawn by burning LP tokens and withdrawing liquidity.
## Staking Rewards
{% hint style="info" %}
This section discusses staking rewards for LP tokens, which come from the new SELE tokens minted per block by the protocol as inflation.
{% endhint %}
Selenium allows users to additionally profit from LP tokens by staking them to receive Selenium Token (SELE) rewards. The LP tokens can be unstaked at any time, and then burned to retrieve the corresponding deposited liquidity and LP Commission rewards.
Selenium Protocol distributes rewards to each Selenized Asset staking pools in **Staking contract** based on the `weight` parameter of each Selenized Asset. Selenized Assets pools as well as the Selenium pool. All Selenized Assets - LUNC staking pools receive a weight of 100, while the Selenium Token pool receives a weight of 300. Therefore, there is a stronger reward incentive to stake to Selenium pool as it confer 3 times the reward when staked relative to Selenized Assets.
A user will receive the portion of rewards for their pool equivalent to their proportional share of staked LP for that pool.
# Governance
{% hint style="info" %}
All community discussion can be done at the Selenium Protocol Forum.
{% endhint %}
Governance is the democratized process through which proposals for change in [Selenium Protocol](/) are introduced and accepted by the community through voting.
There are no admin keys with privileged access. After the initial bootstrapping of contracts, the Governance Contract is set to be the owner of the Selenium Protocol core contracts and all changes must be made through the governance with the [procedure](#procedure) defined in this section.
## Selenium Token
The [Selenium Token](broken://pages/K9w7qh1LCGFMMm7hZiDe) (SELE) serves as Selenium Protocol's governance token. Only users that hold a Selenium position can vote on proposals, and each user receives voting power weighted by their amount of SELE. Users with higher SELE holding will therefore have more influence when deciding in governance proposals.
{% hint style="info" %}
Although a user receives 1 vote per SELE for every proposal, voting in proposal does not have any effect on the user's current balance.
{% endhint %}
## Procedure
The following steps outline the governance procedure:
1. A new proposal is created with an initial deposit that meets `proposal_deposit`
2. The proposal enters the voting phase, where it can voted for by anybody with a SELE position. Users can vote `yes`, `no`.
3. The voting period ends after `voting_period` blocks have passed.
4. The proposal's votes are tallied and **passes** if both quorum (minimum participation ) and threshold (minimum ratio of `yes` to `no` votes) are met.
5. If the proposal passes, its contents will be executed after `effective_delay` blocks have ended. The proposal must be executed prior to `expiration_period`, otherwise it will automatically expire and no longer be considered valid.