The past two weeks have been one hell of a ride. $STA is burning at a fast rate - so fast that the amount of STA burnt is nearing the amount in circulation. No jokes!
Statera is the OG burn project and its volume farming has led me to make tons in passive income. In Jan, I wrote about how I made ~$700 in arbitrage trading using $WSTA and $STA, $WSTA being the wrapped version of the token. It’s much easier than you think.
Well, my thoughts about STA’s future have only become more positive. There have been a couple of new developments and I want to talk about that and the general reason as to why you should invest in STA. That includes getting your hands on some $WSTA and entering the liquidity pool on Beethoven-x.
If you want the short version, here are 4 reasons why STA has huge potential:
- Composability of tokens: STA and WSTA can be used independently
- Arbitrage: STA and WSTA are constantly balanced to maintain equal price, leaving room for arb traders and bots to make a profit. With the way Statera works, more volume means more burns, which leads to more positive price pressure.
- Burns: More trading because of arbitrage and higher volume in general means more burns at a rate of 1% per transaction. There is enormous positive price pressure here.
- Low Impermanent loss: Being able to hold both STA and WSTA in a liquidity pool not only rewards you with fees from the pool but also minimizes impermanent loss as the two assets stay nearly the same in price
How Statera Works - A Quick Primer
It’s important to know how Statera’s burn mechanism works exactly as this is central to the potential of the network.
For EVERY on-chian transaction on Statera, 1% of those assets are burnt. This is hard written into the smart contract. So, when you convert STA into WSTA, 1% of that STA is burnt. So if you’re wrapping 100 STA, you get 99 WSTA. You can then use the WSTA on other protocols.
474k burnt so far!
But here’s where it gets interesting. STA and WSTA are traded individually and their composability means you have a lot to gain from arbitrage (which is what I explain in that article I linked above). For some perspective, my arbitrage trading in Jan alone burnt 5000 STA, or 0.0006% of the STA circulation. Pretty sweet :)
But wait there’s more :P As I said, transactions result in more burning, so when you make those arb trades, you’re burning STA. But because this is happening, you’re also creating more fees for liquidity providers. The whole thing just compounds in the most perfect way, or harmoniously like beethoven-x users might like to say lol
Liquidity Pools are really important here
So, volume is what drives everything. This is why liquidity pools are so important in seeing strong results while arb trading. Pools that have more volume simply means more revenue for the liquidity providers. Also when other assets in the pool begin to moon, STA will experience the nice side effect of growing alongside it!
Also, Statera has been around for a long time so you can rest assured that it is a legit project. The team has stuck by its gun even when other projects of a similar nature have dropped development. The Statera team knows they have something big on their hands and the profits I’ve made so far is pretty good evidence, in my opinion.
The next few weeks will be EVEN BIGGER
The Dante Symphony liquidity pool on beethoven-x (WSTA/WETH/WBTC/WFTM/BEETS), Infinity pool (STA/WSTA) and the statera maxi duet pool also on beethoven-x (WSTA/BEETS) are growing fast. The need to wrap, unwrap and trade STA and the higher volumes in these liquidity pools only mean more positive price pressure for STA. Plus, there are rumors that there are some partnerships and more liquidity pools on the way.
I'm expecting APYs of 1000%+ when autocompounding arrives.
And remember that STA is on FTM, not ETH, so gas fees are low. Trade away and watch the cascading effect. Statera is the first project to burn tokens ACROSS MULTIPLE NETWORKS, as far as I know.
The more people join in, the better it gets for everyone. You can potentially make a decent sized profit if you carry out your arb trades efficiently, as I’ve been doing. What really matters now is that more people contribute to the burning so the network takes off faster. This self-feeding volume farming loop is a gold mine waiting to be tapped into and right now all the signs are pointing towards a moon :D