Posts

Statera (STA) - An interesting hybrid project of a Crypto Index Fund and Liquidity Pool

avatar of @xyzashu
25
Ashutoshनिरवद्याचारी
@xyzashu
·
0 views
·
2 min read

With the ever increasing DeFi craze, you might have invested in some DeFi project or even provided liquidity to some liquidity pool to collect some liquidity mining tokens.

But with so many options, sometimes it gets a bit overwhelming for where to invest to profit from this insane Defi craze while protecting our principal.

Statera project has evolved to cater to this need by providing a safety of Index Fund along with the benefit of providing liquidity to a liquidity pool. Also, you get a free portfolio manager as it's automated through smart contract.

What makes it more interesting is that STA is designed as a deflationary token. 1% of every STA transaction is burnt, thus continuously reducing its circulating supply. So STA is an IDT i.e. Indexed Deflationary Token.

Currrently Statera offers 2 portfolio options:

  1. Delta token: The simplest portfolio consist of 50/50 ETH/STA. Providing liquidity to ETH/STA pool generates a tradable Delta token. This Delta token can also be re-invested to provide liquidity to a more diversified pool called Phoenix Fund.

  2. Statera Phoenix Fund: This is the flagship fund with major share of Ethereum along with 2 leading DeFi tokens and wrapped Bitcoin. It is distributed with Delta (Statera/Etherum), Ethereum, Bitcoin, Chainlink, and Synthetix in the ratio of 40/30/10/10/10.

The interesting part is that these funds will always re-balance automatically to maintan the specified ratio. If one asset rises in proportion to others, it will be sold utilizing arbitrage opportunities in the external markets. By adding STA in the mix, it accelerates its delfation as every trade in it puts 1% of transaction amount of STA to burn. This leads to increase in STA value. If it increases, the automated AI Portfolio Manager will sell it for other tokens. And if STA prices see a decline, this Portfolio Manager will sell other tokens to buy STA. And these will again lead to STA burn which will reduce its supply further.

Arbitrage ignites trading and trading pulls liquidity, which attracts further trading. Thus liquidity & trading increases & the STA supply decreases.

Over 5% of total STA supply has laready been burnt.

It would be good to see more funds involving more coins making the fund more diversified and giving investers interested in other coins a few options. But more application of this concept can reduce the market volatility and frequent pumps and dumps that all traders love. However providing market with stability will make this industry more mature.

This deflationary STA coin is rapidly rising in value. In past couple of weeks it has seen over 200% in gain from a mere 0.05 cents to about 15 cents now! But I wonder what will happen when all 99.99999% of it gets burnt! Will we ever come to see such a day?

  • What do you think about Statera project?
  • Is it more resilient now, esp. after the initial hack of its pool which was quickly replenished by the project team?
  • Are you excited about Phoenix Fund? What kind of index fund you would be more interested in?