A BREAKDOWN OF THE STATERA INDEXED DEFLATIONARY TOKEN RETURNS FOR EVERY INVESTOR
Statera envisions a world with cryptocurrency in every portfolio. When we say “every,” we mean from the simplest and most traditional investor all the way to the most active swing trader. This is one part of our ecosystem that is so powerful, there are entry points for all types of investors. Our current ecosystem is especially effective at growing your Ethereum holdings and we wanted to put forward some easy, and not so easy, ways to get yourself some extra Ethereum before the next bull run.
Delta Token is a Uniswap Liquidity Pool represented by a Uniswap V2 Token. You can look at Delta Token as an index fund of 50/50 Ethereum/Statera. As a liquidity pool you provide liquidity for trades on the exchange side of Uniswap. Each time your pool services a trade you get paid a fee (like dividends). Adding Statera to your Ethereum holdings in the liquidity pool helps to increase volume. This is a result of Statera’s deflation, low market cap, and larger ecosystem (it is threaded into multiple liquidity pools). This increased volume increases the fees you earn.
Here is a graph of Delta’s Token Value overtime (rises and falls with the price of ETH and STA), and the fees earned. You can see the fees were over $2 for the month of June, depending on when you pooled that is anywhere from 100% (pooled when Delta was $2) to 20% (pooled when Delta was nearly $10) returns for a single month. If those returns stayed steady for a year, since they compound daily, both of them would be astronomical annual percentage yields (900% to 400,000% APY)!
This means, if returns continue as they have been, you could be doubling your holdings every one to five months. At any time you can withdraw all your holdings. There is the negative effect of impermanent loss, but even if your holdings move 500%, impermanent loss affects them by 25% which can be easily outweighed by fee returns.
An Example: A trader pooled Delta on June 12th and checked the value of it on July 8th
Price of Delta (the price remained steady because of fees paid to the pool)
Price of STA and ETH (ETH stayed steady STA dropped 58% in price)
The price of STA took a sharp hit with the Balancer hack. The hack exploited the exchange code. STA code was, and continues to be, secure. However, that 58% loss in price was nearly completely offset by the fees paid to the Delta holder. If STA recovers in price the gains become even larger. Even if STA’s price stays low you would continue to earn fees and be in profit once fees outweigh the price drop.
This doesn’t take into account the rebalancing that happens also. Your 50/50 share now holds a lot of STA (over 30% more than on June 12th) which means as STA’s price recovers you will see more gains from that than if you didn’t have a constantly rebalancing portfolio.
This is the power behind STA’s ability to increase volume and increase the fees you earn on your holdings. Even with the swings of the cryptocurrency market you can still make a profit. This happens while building the amount of crypto you are holding (the fees paid to you are paid in extra crypto), so when the swings go up you get even more gains.
Another way to make some extra Ether that is a bit more complicated is Delta Arbitrage. Delta trades mainly across three pools (for now). Statera Ether Pool (this is where Delta is “minted”), Delta Liquidity Pool (Delta-Statera), and Phoenix Indexed Fund (a pool consisting of Bitcoin, Ethereum, Link, Synthetix, and Delta). Every time the Balancer Pool needs to buy or sell Delta a spread is created (the supply of Delta is set and only goes up or down through minting and un-minting Delta). This means when the Balancer buys Delta it’s price will go up, meaning you can mint Delta for less than that price and sell it for a profit.
We have seen community members do this themselves and here are two example results:
Delta Token minted for .4 Ether on Uniswap
Delta Token sold for .4125 Ether on Balancer Pool
Delta Token minted for 1 Ether on Uniswap
Delta Token sold for 1.0219 Ether on Balancer Pool
This “profit” is free to you, you are providing the market with the Delta it needs and getting a premium for doing so. Although gas prices will cut into this spread. If you have programming knowledge making a bot to do this would be even better. Also as liquidity grows you will be able to arbitrage larger amounts, right now you could get high slippage as you go over 1 Ether of value (this could change rapidly as liquidity grows).
Screenshots for Delta Arbitrage
Minted 30.3 Delta tokens on Uniswap for 1 ETH, sold on Balancer Pool for 1.02 ETH
Etherscan of the above transaction
Minted 12 Delta Tokens for .4 ETH, sold on Balancer Pool for .4124 ETH
Earning Crypto with our Pools
On top of these two options for quickly and easily growing your Ethereum holdings, you can also add STA and Delta to the Delta Liquidity Pool, or hold all five assets in our Phoenix Indexed Fund (Delta, wETH, SNX, LINK, wBTC). The power here is that the Delta you put into these two pools still earns you the fees above, those are then compounded with the fees from the Delta Liquidity Pool and/or Phoenix Indexed Fund.
Our Pool Rankings
Though we have found pools.fyi to have some data problems, our pool is still in the top 5, and a community made pool is in the top 20!
We believe our pools give you some of the best places to store and earn crypto across the entire DeFi space. The data above shows our belief to be well founded. Deflation reduces the overall volatility of pool returns while increasing positive price pressure. The Statera token itself introduces and thrives on increased volatility, since increased volatility increases volume and fees paid to holders. Benefiting from volatility is a powerful trait to have in cryptocurrencies. Our pools’ high volume and high fees paid to holders show our system is working.
So if you would like to earn some “dividends” while you wait for the next bull run, grab some Statera, grab some Delta, play with some arbitrage, and get cryptocurrency in your portfolio!