STATERA

STATERA

By Bakreemah | Ghosthunter | 19 May 2020


…a smart contract deflationary token within a portfolio of selective coins/token built on the Ethereum blockchain.

INTRODUCTION

BLOCKCHAIN TECHNOLOGY IS CHANGING, DEFI IS EVOLVING! Blockchain technology is changing the World forever, over the past decade, the introduction of blockchain technology to the world and especially the world finance system has proven how convenient and secured the World's finance system can be. Blockchain has proven its' worth to be an essential tool in the world finance system. Varying from a different mode of transaction to the flexible usage of it.

The Ethereum blockchain has played and still playing a significant role in Blockchain finance evolution. With over a hundred projects out there, each aiming and claiming to solve the problem of financing system in the world, Decentralized Finance DeFi has proven to play an essential role in this regard.

Deflationary Projects arise amidst the flow of developers developing ways of making a project unique and scarce through constant reduction of total supply during a transaction. Over the past few years, many projects attempted this approach, however, they failed to achieve this goal as a result of the unsustainability of the project, or the utter intent of some of the developers to scam people of their money. Nevertheless, previous deflationary cryptocurrency attempts have proven the fact that this method alone will not make a project unique or scarce. Hence, a few projects attempted to apply other interesting features to their deflationary projects, some of which are discussed briefly below.

DEFALTIONARY PROJECTS

Through a constant reduction of total supply as a result of a certain percentage of each token transaction sent to 0x address, a deflationary project aims to reduce its total supply to make it scarce, thus increasing the demand and value of the project.

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The first project to start this on-chain action was BOMB token. With every transaction on BOMB, 1% of the supply is sent to 0xaddress and lost forever, this is known as BURN. Unfortunately, this didn't work for a long time as anticipated, turns out it takes a project more than just that to make it demanding. In light of this, a few other deflationary projects decided to add extra features to its deflationary attribute.

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A good example of this is another deflationary project called Shuffle Token (SHUF) burn 1% on every transaction, and randomly send another 1% to any of the top 512 holding addresses, this second feature is known as Heap.

 

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The last example is Ruletka (RTK). Ruletka is an experimental ERC20 token, it was developed in the small town of Alatyr in Russia. When a transaction is made using RTK a number is chosen between 1 and 6. If 6 is chosen, the coins in the transaction will be sent to the 0x address and burned. It was developed based on the legend Russian Roulette life gambling game. 

Regardless, deflationary projects are yet to receive the world's attention as most of them struggles to be sustainable.

INDEX FUND

For the past two years, Decentralised Finance or DeFi has been undergoing a series of changes and development. DeFi is aimed at providing solutions to the challenges being faced by traditional financial systems using Etherium blockchain as its primary station.

What is Index Fund?

Investopedia.com described index funds as a type of mutual fund with a portfolio constructed to match or track the components of a financial market index, providing broad market exposure with low operating expenses and low portfolio turnover.

Market Index

A hypothetical portfolio of investment holdings representing a segment of the financial market. The calculation of the index value comes from the prices of the underlying holdings. Investopedia.
2017 was a significant year for crypto, however, was succeeded by the extended bear market. The long bear market made it difficult for investors to select which market they are to invest in. since the rise of the crypto market, it has been experiencing a series of ups and downs, making it difficult, especially for retail investors to select the market they are to invest in. the idea of index market in the blockchain industry is something not usually mentioned, while most investors preferred to long or short on BTC or other Alts.

 

CRYPTOCURRENCY INDEX FUND

Late 2019 and early 2020, cryptocurrency index funds are becoming an item of discussion and interest in the cryptocurrency investment world. A cryptocurrency index fund prevents an investor from the stress of constant or active management of their crypto fund portfolio.

They help spread risks by diversifying an investment across a broad selection of coins, protected from the crypto market volatility. This means your fund is being handled for you, which of course necessitates a form fee. While fees vary from one index fund manager to the other, the differences in fees don't guarantee the performance of one manager over the other. Among the popular cryptocurrency index funds that are currently available on the market as of 2020 includes:

  1. Coinbase Index Fund
  2. BB Index
  3. Iconomi
  4. CBI Index 7 (CBIX7).

Note: this article does not prescribe an index fund or tokens for readers to invest in, rather make your research before investing.

INDEXED-DEFLATIONARY TOKEN

The idea behind an indexed deflationary token is to keep cutting the circulating supply on a transaction basis, coupled with an investment in diverse selective coins on the Ethereum blockchain market.

Using balancer, the idea is to have a deflationary token inside a pool with other assets for example; USDC, ENJ, LINK, KNC, etc. along with the deflationary token itself, all of which are in one pool. When the token is bought, it will automatically rebalance into other sets in the pool, increasing the trade volume and at the same time burning. A mix of index/portfolio token with a deflationary token.

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STATERA [STA]

Statera, in Latin, means Balance. STA is a trustless smart contract deflationary token within a portfolio of selective coins/token built on the Ethereum blockchain. The index portfolio includes WETH, WBTC, LINK, SNX, & STA. STA is built on a smart contract, holding all the funds including STA itself.

When STA is purchased with ETH, ETH is spread into the weight in the portfolio and STA purchased gets removed from the index amount.  The index suit is not fixed, i.e. the coins in the portfolio can be easily replaced should in case the market demand for a change.

The index also charges a fee. Every time a trade is executed through it (not a purchase of STA this time around, but swapping DAI for ETH for example), 1% stays behind and is shared between the portfolio. With the deflationary attribute of STA, the more trades that occur, the more valuable it becomes. The idea is that a price difference will lead to auto-balancing, which means burning. There you have it, An Index-Deflationary Token.

STATERA [STA] TOKEN INFORMATION

Total Supply: 100, 000, 000.

Burn rate: 1% on each transaction.

Blockchain: Ethereum.

Website: Statera

Community: Telegram Twitter

Contract address: Etherscan

Portfolio address:  Balancer

Current exchange: Uniswap

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