Statera (consisting of the STA and wSTA tokens) is a smart contract powered Indexed Deflationary Ecosystem, which synergizes with a trustless and community-driven portfolio of class-leading cryptocurrencies.
Statera (STA) is a smart contract powered Indexed Deflationary Token (IDT), which synergizes with a trustless and community driven portfolio of class-leading cryptocurrencies.
Statera comes from the Latin word Balance.
The concept of IDT is that by continuously burning a small portion of circulating tokens and participating in an index fund, IDT realizes risk-reducing risks for the sector and incentivizes participation in the portfolio.
To accurately describe the tokenomics of Statera (the token economy), we need to understand two definitions: an index fund and a liquidity pool. Wikipedia describes an index fund as a mutual fund or exchange-traded fund (ETF) designed to comply with certain pre-set rules so that the fund can track a specific basket of underlying investments. Some examples of popular ETFs include: S&P 500 and Russell 2000.
“A liquidity pool is a decentralized pool of funds, managed by smart contracts, based on a traded pair of cryptocurrencies. In practice, the liquidity provider contributes equal amounts of trading cryptocurrencies to the pool and is compensated in return in the form of trading fees generated by the exchange to which the pool is linked.”
The Statera Index Fund is a hybrid of a liquidity pool and an index fund. It is designed to track leading cryptographic tokens and allows the Statera token to function in an intuitive manner.
Let's take a look at the Statera in motion. Each Statera transaction burns 1% of the transaction value. Meanwhile, in the index fund portfolio, all five tokens maintain a 20% share of portfolio wealth through the use of a smart contract portfolio manager. When the ratio of an asset increases relative to others, the portfolio will be rebalanced by selling the token that gained value. This is achieved through the use of arbitrage opportunities in external markets for unbalanced tokens. This means that if the price of Statera falls, the portfolio manager will sell other coins for Statera. If the value of Statera rises, the portfolio manager will sell Statera for other coins. This is good for a variety of reasons: AI is in direct competition with swing traders, preventing the dumps and pumps that always result from it. What's more, we can now see where the Statera magic happens. By including Statera in the portfolio, the deflationary process of Statera is accelerated, tokens are burned, and the supply is reduced. As a result, the trading volume of Statera will naturally grow. In addition to this, the portfolio acts as a liquidity provider and charges a commission on trading operations.
Statera V3 was distributed as shares of the Index Fund's liquidity pool on Balancer. Each Statera V1 and Statera Classic (STAC) holder at that time received a percentage of the Index Fund in the form of BPT tokens, calculated in proportion to the Statera V3.
BPT holders can unlock their stake in the Index Fund and withdraw liquidity using BPT. As mentioned earlier, the initial supply was 101,000,000, and at the time of publication, there are now 95,386,371 in circulation, which means that only 5.6% of all tokens have been burned since the creation of this project.
Also, as a thank you for all the energy and support from ASH and BURN investors, our previous projects, we are pleased to announce that we will be exchanging ASH and BURN tokens for Statera tokens. This exchange will come directly from our development fund, which represents less than 5% of Statera's total supply. We fully believe in building a strong community where we support each other. To this end, we believe that compensating our early investors is a prerequisite for project success. In the future, we will not mint new tokens at any stage.
The balancing pool acts as a counterbalance and market maker to the Statera (STA) token, whose relative size determines its influence and purchasing power. Adding liquidity to a pool yields a number of Balancer Pool Tokens (BPTs), which represent a share of the fund. It is important to note that these BPTs can later be exchanged for the underlying assets of the tokens at any time. Other incentives include receiving a share of the transaction fees on the platform through what the balancing team has called “liquidity mining.” This means that in the very near future, Statera participants will receive BAL tokens to provide liquidity. In fact, the reward for the liquidity provided so far is already being calculated. For more information on the nature of the tokens and their distribution, please contact the Balancer Pools team.
Having an ecosystem built around the STA token provides a method not only to add liquidity, but also gives traders the ability to maintain a lower risk option by converting a portion of their holdings into an index.
Balancing Pool Token: Statera Ecosystem Equity Tokens
If you believe in this project, can foresee the growth of the fund (as we can) and would like to receive a percentage of this growth, then simply providing liquidity is sufficient. Thus, you automatically receive a part of the fund. However, the BPT token itself is traded in the STA/BPT pair on uniswap and you can provide liquidity for this pool. For experienced traders, the availability of BPT outside of the balancing pool provides an arbitrage opportunity, and system stability is further enhanced by using it.
STA/BPT pairing became available in uniswap v2 with an equal weight of 50/50. Thus, the amount of liquidity in the pool will forever be tied to the value of the STA token. If the price of the STA token rises, the liquidity in the pool will also increase.
Users are interested in adding liquidity and making a profit through the following mechanisms:
People can buy BPT directly from the Uniswap market without adding liquidity to the balancer. These BPT shares are provided to the market by more advanced users who go through additional stages, and thus these tokens will be slightly more expensive, containing a certain range of profits, let's call it a convenience fee. The amount of this fee will be determined by the open market. If it becomes too large, more participants will provide their services to add BPT to the market, and thus BPT can be bought at fair market value.
Arbitrage and movement of tokens is stimulated by instant capture of value in the market. If the value of STA increases, it becomes relatively more valuable than BPT tokens on the Uniswap market. Consequently, it becomes profitable to mint new BPTs, adding liquidity to the pool of balancers.
On the other hand, if the value of STA decreases, users buy new cheap STA tokens from the market and then use them to buy BPT; profiting from assets that will momentarily become more valuable. This encourages arbitrageurs to buy more STA tokens, thus supporting the price again.
Arbitrage attracts trading. Trading attracts liquidity, which in turn attracts traders. Liquidity fluctuates and supply decreases. This ecosystem is the world's first self-balancing and self-moving Statera index token.
You have the option to purchase BPT through the STA/BPT pair on Uniswap, and with that BPT you can then use it to buy back the underlying assets of the tokens in the balancer's liquidity pool at any time.
Which synergizes with a trustless and community-driven portfolio of class-leading cryptocurrencies.
Every trade for Statera creates arbitrage opportunities, which results in volume rippling across the entire Statera ecosystem, resulting in higher fees paid to liquidity providers.
February 14, 2022
Which synergizes with a trustless and community-driven portfolio of class-leading cryptocurrencies.
Every trade for Statera creates arbitrage opportunities, which results in volume rippling across the entire Statera ecosystem, resulting in higher fees paid to liquidity providers.