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Astar Network Defi: 170% APR on ETH and up to 140% APR on Stablecoins using Starlay Finance

By Charles Gune | cryptoguru | 13 Apr 2022


Starlay Finance is a lending protocol on the Astar Network, an EVM-compatible blockchain that calls itself “the Polkadot-native dApp hub supporting Ethereum, WebAssembly, dApp Staking, and Layer2 solutions”.  Starlay is currently the largest dapp on Astar with $426M in TVL. Its $LAY token isn’t trading yet but will be available to claim after an IDO planned for later this month. Depositors can provide liquidity to earn interest as a stable passive income, while borrowers can leverage their assets without selling them out.  Starlay’s MAKAI feature allows users to automatically fold (deposit, borrow and re-deposit) their assets in order to boost yields, and this is what we’re interested in. 

While the yields look extremely promising, bear in mind that they are projections based on the future price of the LAY token once it starts trading. Listed tokens are ASTR, USDC,USDT, DAI, BUSD, WETH, WBTC, and WSDN. Each of token as its own liquidation threshold. It is normally 85% for stable coins. Liquidation Threshold of 80% means that if the value rises over 80% of the collateral, the position is collateral deficient. Then the asset might be liquidated Loan to value (defines the maximum amount of assets that can be borrowed by collateral) is normally 80% with a reserve factor (which is Reserve Factor allocates a share of the protocol's interests to the collector contract as a reserve for the ecosystem) of 10%.

Setting Up MetaMask for Astra Network
Go to Setting Under MetaMask wallet and add following under custom RPC.
Add the Astar network to MetaMask using the following parameters.
Network Name: Astra Network
New RPC URL: https://rpc.astra.network:8545
Chain ID:592
Currency Symbol: ASTR
Block Explore URL: https://blocksout.com/astra

Bridging USDC from Fantom to Astra Network
Next, I will show you how to bridge USDC from Fantom network to Astra Network using my Metamask wallet. You can similarly brigde from BNB, Avalauche, Polygon, Arbitrum, Flow, Oasis, Aurora, Harmoney, Moonrive, Optimism, Boba and Milkomeda Cardano networks as well. Head to the Celer Network Bridge and connect your MetaMask wallet to the Fantom network. You can bridge USDT and USDC separately, or send either and do the swap on ArthSwap. Currently, supported assets are wETH, wBTC, USDT and USDC.

Gas fees on the Astar Network are paid in ASTR and you’ll receive 0.005 ASTR when you bridge assets for the first time. If you need more, ArthSwap has published a guide to using the ASTR Faucet.  I am waiting for my airdrop Gas Tokens On Arrival of 0.005 ASTR token. It says estimated Time of Arrival of bridge funds is 5-20 minutes on Astra network.  After approving. I had to hit refresh to see the transfer button. Then click on Transfer Button. Final time pay with FTM gas to confirm the transfer of assets. Wait 5-20 minute for funds to appear on Astra network. I could not find USDC astra network token address. So, I went to Portal.astra.netwrok and click on assets. I click Plus button next to USDC to add USDC token to Metamask Astra wallet. Now, I can see my 103.532. Celler bridge only charge me $0.04 to transfer out $100 worth of USDC from Fantom network. Also fact that I got free 0.005 ASTR token airdrop it is worth the bridging.

Depositing Funds to Starlay Finance

Go to Starlay.finance. Click on Makai. Starlay finance is loohttps://join.robinhood.com/chandrg151ping built in function. Looping is way to increase your leverage and increase your APY. x1 button mean no leverage.
Leverage can be adjusted based on your risk tolerance. As the app suggests, please review the documentation before depositing assets! The loop feature allows for up to 5x leverage in deposit for the asset with 80% LTV by conducting the loop 27 times. I picked 5x leverage. I paid only 0.000074 ASTR tokens in gas fees to approve. In order to deposit I click on deposit and paid 0.000074 ASTR tokens in gas fees. Approve your tokens and proceed with your deposit. I only deposited $100 USDC. Using the 5X leverage button, it turn out to be Deposit of $492.69 and borrowing of $391.88 at the net APY of 23.79. My health factor is 1.07 it is at side of liquidation. I need to watch for health factor not to fall below 1.0. After depositing few minutes ago, I am already making 0.01 Lay tokens as rewards. Currently LAY tokens are not tradable as of shooting this video. In the near future after LAY tokens are tradable, I can sell it to claim my staking rewards. All deposit assumption are based on LAY token price will be $0.30.
You’re now farming LAY tokens, which you can claim once it becomes tradeable.

Risk and Rewards
Finally, here are my risk and rewards summary. My general idea is as soon as LAY tokens are tradable they will be dumped by the farmers that will suppress the token price. There is of course the risk of liquidation by this folding of assets. Starlay Protocol is a new DEX on Astra Network and there is always risk of Smart contract exploits where all funds or partial of funds can be lost due to an exploits. There is no entry for Starlay Protocol on defisafety.com. I also wanted to get in on Starlay Protocol's possible future airdrop if any. If you want to get in on Starlay Finance IDO, go to ArthSwap.

If you enjoy this Starlay Protocol's Easy Leverage Lending and Borrowing on Astra Blockchain tips, please subscribe and hit the like button show some love. Happy crypto.

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Charles Gune
Charles Gune

I love anything about cryptocurrencies. I am avid follower of cryptocurrencies. I follow trends on crypto. I am small scale cryptocurrency miner with my private farm.


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