STATERA: A TRUSTLESS INDEXED-DEFLATIONARY TOKEN

STATERA: A TRUSTLESS INDEXED-DEFLATIONARY TOKEN

By STATERA PROJECT | STATERA PROJECT | 9 Jun 2020


 

STATERA: INTRODUCTION


Statera’s namesake is derived from the Latin word for Balance. Statera (STA) is a smart contract powered Indexed Deflationary Token (IDT) which synergizes with a trustless and community driven portfolio of class-leading cryptocurrencies. The portfolio includes: Wrapped Bitcoin (WBTC), Wrapped Ethereum (WETH), Chainlink (LINK), Synthetix (SNX), and Statera (STA).

The concept of an IDT is that by continuously burning a small portion of the circulating token supply and participating in an Index Fund, the IDT will realize risk-mitigating sector exposure and drive portfolio participation.

STATERA TOKENOMICS

To describe Statera’s tokenomics (token-economics) accurately, we must understand two definitions: Index Fund and Liquidity Pool. Wikipedia describes an Index Fund as a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments. Some examples of popular stock index funds include: the S&P 500 and the Russell 2000.

“A liquidity pool is a smart contract driven decentralized pool of funds based around a tradable cryptocurrency pair. In practice, a liquidity provider deposits equal amounts of the trading cryptocurrencies into a pool and in return receives compensation in the form of trading fees generated by the exchange that the pool is attached to.”

Statera’s Index Fund is a hybrid of a liquidity pool and an index fund. It is designed to track leading crypto tokens and allow the Statera token to function in an intuitive way.

Let us examine Statera in motion. On every Statera transaction 1% of that transaction’s value is burned. Meanwhile, in the Index Fund portfolio, all five tokens maintain a 20% share of the portfolio’s wealth through the use of a smart contract portfolio manager. When an asset’s ratio increases relative to the others, the portfolio will re-balance itself by selling the token that has gained value. This is accomplished by utilizing arbitrage opportunities in the external markets for the imbalanced tokens. This means that if Statera’s price drops, the portfolio manager will sell the other coins for Statera. If Statera’s value rises, the portfolio manager will sell Statera for the other coins. This is good for a variety of reasons: the AI is a direct competitor to swing traders, discouraging the dumps and pumps that always come from that. Moreover, it also helps negate dumps in general, as it offsets the loss from a large sell order.

Now we can see where Statera’s magic happens. By including Statera in the portfolio, Statera’s deflationary process speeds up, tokens are burned, and supply is reduced. As a result, the trading volume of Statera is naturally bound to increase. On top of that the portfolio acts as a liquidity provider and collects fees from the trading it conducts.

STATERA DISTRIBUTION

Statera V3 was distributed in the form of shares of the Index Fund liquidity pool on Balancer. Every Statera V1 and Statera Classic (STAC) holder at that time received a percentage share of the Index Fund in the form of BPT tokens, calculated in proportions for Statera V3.

BPT holders can unlock their share of the Index Fund and withdraw liquidity using BPTs. As previously mentioned, the initial supply was 101,000,000 and as of publishing, the circulating supply is now 95,386,371, meaning that a total of 5.6% of all tokens have been burned since the birth of this project.

Additionally, as a thank you for all the energy and support of ASH and BURN investors, our previous projects, we are pleased to announce that we will be swapping ASH & BURN tokens for Statera tokens. This swap will come directly from our development fund which is less than 5% of the total supply of Statera. We fully believe in creating a strong community where we support each other. To that end, we believe that compensating our early investors is imperative for the success of the project. Moving forward, we will not mint new tokens at any stage. 

BREAKDOWN OF THE ECOSYSTEM

A Deflationary Index Fund on the Balancer Protocol

The Balancer Pool acts as a counterweight and market maker of the Statera (STA) token, the relative size of which dictates its influence and buying power. Adding liquidity to the pool yields a number of Balancer Pool Token (BPT) which represent a share of the fund. Importantly, these BPT can then later be redeemed for the underlying token assets at any time. Other incentives include getting a share of transaction fees on the platform, through what the balancer team have termed ‘’liquidity mining’’. This means that in the very near future, Statera participants will be receiving BAL tokens for providing liquidity. In fact, rewards for liquidity provided so far are already being calculated. More information on the nature of the token and their distribution is available form the team at Balancer Pools.

Having the ecosystem built around the STA token provides a method not only for adding liquidity, but also gives traders the choice to maintain a lower risk option by converting part of their holdings to the index.

Balancer Pool Token: The share tokens of the Statera ecosystem

If you believe in this project, can envision the growth of the fund (as we do) and would like to secure a percentage of that growth then simply providing liquidity is enough. By doing so, you automatically secure a portion of the fund. However, the BPT token is in itself tradable in an STA/BPT pair on uniswap and you can provide liquidity for that pool. For sophisticated traders, the availability of BPT outside of the Balancer Pool provides an arbitrage opportunity, and the stability of the system is further bolstered by its utilization.

The STA/BPT pairing has been made available on uniswap v2 at equal weights of 50/50. By doing so, this will forever link the liquidity volume in the pool to the value of the STA token. If the STA token price increases, liquidity in the pool will also increase.

Users are motivated to add liquidity and realize profit via the following mechanisms:

People can buy BPT tokens directly on the Uniswap market without going through the process of adding liquidity on the Balancer. These BPT shares are provided to the market by more advanced users who go through the extra steps, and thus these tokens will be a little bit more expensive containing a certain profit range, call it a convenience fee. This fee will be decided by the open market. If it grows too large, more participants will provide their services of adding BPTs to the market, and thus the BPTs can be purchased at fair market value.

Arbitrage and token movement is incentivized due to the momentary capture of value on the market. If the value of STA increases, it becomes relatively more valuable than the BPT tokens on the Uniswap market. Therefore, it becomes profitable to mint new BPTs by adding liquidity to the balancer pool.

On the other hand if the value of STA decreases, users buy the newly cheap STA tokens on the market, and then use these to purchase BPT; profiting from the assets within which will be momentarily more valuable. This motivates arbitrageurs to buy more STA tokens, thereby propping the price up again.

Arbitrage attracts trading. Trading attracts liquidity, which in-turn attracts trading. Liquidity ripples & the supply decreases. This ecosystem represents the world’s first self-balancing and self-propelling index token Statera.

You have the ability to purchase BPT through the STA/BPT pair on Uniswap, and with this BPT you can then use it to redeem the underlying token assets in the Balancer Liquidity Pool at any time.

CONCLUSION

We are pleased to announce that we have created a finalized contract that is completely trustless! Statera V3 was successfully deployed and after much testing, is fully functional.

Once again, we’d like to thank all of our community members for the love and support you have given to us throughout this teething period. The project is finalized and is now completely in the community’s hands. We will continue to provide updates as frequently as possible.

STATERA FAQS

Q: What does Statera do?
A: Statera works as a deflationary index fund, a store of value and Proof of Balance.

Q: What is Re-Balance?
A: Re-balance is the process whereby the Balancer will automatically sell off assets which are disproportionately higher than others. For example, if BTC pumps, the Balancer will sell off BTC to regain a fixed ratio value of 20% across all tokens.

Q: Where can I purchase Statera?
A: Currently you can visit our website: https://www.stateratoken.com and click ‘Trade’, you will be redirected to the Uniswap exchange whereby you can purchase and trade Statera. Statera will be listed on more exchanges in the future.

Q: How can I view the price of Statera?
A: Statera’s price and other market stats can be viewed on Uniswap V1 (by viewing 1 STA → USDC). It has come to our attention that there are delays in price and volume updates on CoinGecko, so we do not recommend using that for now. We have been in contact with CoinGecko and we hope to have this resolved soon.

Q: How do I add liquidity to the pool?
A: You can add liquidity to the pool through the ‘portfolio’ link on our website, however, please do note that you need to split the value of your Statera between the 5 tokens we have listed above before adding them to the pool. We are trying to develop a workaround for this, please stay tuned for future announcements regarding liquidity deposits.

Q: Does Statera have its own blockchain?
A: No, Statera is built on the Ethereum blockchain


CONTACTS

Website: https://www.stateratoken.com

Support: support@stateratoken.com.


STATERA PROJECT
STATERA PROJECT

Statera (STA) is a smart contract powered Indexed Deflationary Token (IDT) which synergizes with a trustless and community driven portfolio of class-leading cryptocurrencies. The portfolio includes: (WBTC), (WETH), (LINK) (SNX) & (STA).


STATERA PROJECT
STATERA PROJECT

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