Crypto Gideon🦇🔊
Crypto Gideon🦇🔊

@CryptoGideon_

19 تغريدة 3 قراءة Jul 03, 2023
What in the world?🤯
➡️You can supply $10k ARB/USDC on $UNI and get exposure to $42k+ with leverage?👀
All of this with:
• 435% APR
• 0% borrow cost
You can also long $ARB at the same time for additional exposure/profit👌
No wonder #Binance is behind them💰
Real $ALPHA 👇
1️⃣What is Stella?
A leveraged yield strategy protocol⬇️
It enables users to take leveraged positions at 0% cost to borrow.⚖️
It works on the innovative PAYE(pay-as-you-earn)model, which means:
➡️Leveragoors pay only when they close a profitable trade(no upfront cost)
Alpha👇
2️⃣How it works?⚙️
There are 2 types of users:
•Lenders - users who lend funds to earn passive yields
•Leveragoors - users that take leveraged LP/staking positions
If leveragoors don't get any positive yield, they don't pay anything to lenders
On the other hand👇
3️⃣Yield share💸
Stella allows leveraged positions on Uniswap v3.
When leveragoors make a profitable trade, they share a portion of a yield with lenders.
The more the leveragoors get, the more the lenders earn.📈
Let's explain it with example👇
4️⃣Example
Let's say you supply 1000 $USDC
And you open a position with 4x leverage by borrowing:
•2 $ETH
•$1000 USDC
After 30 days, your 4000$ is now worth 4200$
➡️You close your position with a yield of 200$
But, you now have to split your yield with lenders👇
5️⃣Yield distribution
With 200$, your Annualized Yield is 60.83%
This means Yield Cut is 31.36%
Leveragoor will get 50$ as Base Yield.
And other 150$ will be split among:
•Lenders - 47,04$
•Leveragors - 102,96$
Stella deducts 25% of 💸 splitted to lenders as Protocol Fee
6️⃣Market fit
3 issues with current lev. yield projects:
•Leveragoors have negative APYs in 50%+ of current protocols
•Upside for lenders is capped by the utilization rate
•Borrowing cost is determined by utilization rate, which is unrelated to yield leveragoor's receive
7️⃣Stella Strategy
For leveragoors:
➡️Their only obligation is to share the yield they earn when the position is closed.
This means:
No gain = No pay👌
You can see leveraged positions come from Uniswap v3 LPs👇
8️⃣Another unique feature of Stella strategy
100% Safe Undercollateralized Loans👇
Stella has the ability to achieve:
•Undercollateralized loans
•Increase the capital efficiency
This is made possible by using the LP Token of the position as collateral within its contract.
9️⃣Stella strategy - 2 modes
🔷Borrow by leverage
It is a simple mode that has 3 benefits:
•Passive position management
•Minimum price exposure in the short-mid term
•Leveragoor earns leveraged trading fees regardless of the direction of the market in the short-medium term
🔟Stella strategy - 2 modes
🔷Borrow by amount
This is an advanced strategy that allows you to maximize asset price exposure.
In this mode you also earn leveraged fees, but also can long/short an asset.
In this example, I put "long" on $ETH
If $ETH goes up, I make profit💰
1️⃣1️⃣Stella Lend
For Lenders:
➡️Deposit assets to lending pools on Stella and earn uncapped real yields💸
Yields generated from Stella Strategy(leveragoors) are shared with lenders.
As Lending APY is the yield shared from leveragoors, there is no maximum cap on the lending APY
1️⃣2️⃣Features of Stella Lend
Precautionary Measures:⚠️
are implemented to safeguard against potential losses.
This means each strategy operates with its own specific borrowing cap.
Plus there is also an underlying asset's borrowing cap.
See collateral and borrow factors👇
1️⃣3️⃣Supported Leveraged Strategies
Leveragoors can leverage their position and maximize yields up to 4x🚀
In the future, Stella will add more yield opportunities by supporting:
•In-demand liquidity pools
•Assets with high-yield potential
Supported $UNI v3 LP assets👇
1️⃣4️⃣Turbocharged capital efficiency on $UNI V3
Stella supports all V3 ranges
(Narrow, Medium, Wide range)
It leverages Capital efficiency by giving you the ability to:
➡️Calibrate long/short exposure to asset prices by supplying and borrowing in any ratio
1️⃣5️⃣Audits & Investors
Audits were made by:🔎
• Peck Shield
• Trust security
They are backed by some well-known investors:💰
@multicoincap
@DeFianceCapital
@Delphi_Digital
@BinanceLabs
@TheSpartanGroup
@SCB10X_OFFICIAL
1️⃣6️⃣Transparency & conclusion
This thread was made in collaboration with Stella.🤝
I like their innovative product and plan to use it in the future.
Degens are bored with 10% APRs on most LP pairs.
They want more.🤑
That's where Stella comes into play.👌
NFA.❌
DYOR. ⚠️
If you made it this far, you are in the top 1%.💎
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