Statera (comprising the STA & wSTA tokens) is an Indexed Deflationary Ecosystem, powered by a smart contract. Every transaction using STA has a burn effect - 1% of the transaction is burnt, forever. If you send 100 tokens to a friend, they only receive 99, 1 is burnt. If you buy 1000 tokens on a DEX you will only receive 990, 10 tokens will be burnt in the transaction. This burn mechanism makes Statera deflationary, and creates extra arbitrage and trading opportunities when paired with other tokens in DEXes or included in collections/funds of tokens in Balancer or Beethovenx for example.
Previously only available on the Ethereum Blockchain, Statera is now also available on Fantom Network, where it can really thrive due to much lower transaction fees.
The smart contract works with portfolios/funds of cryptocurrencies, integrating with multi-asset protocols such as Balancer (on Ethereum) & Beethovenx (on Fantom).
Every individual trade for Statera creates arbitrage opportunities for both bots and humans, which results in trade volume increasing across the whole Statera ecosystem. This in turn results in higher fees paid being paid to liquidity providers.
Another way of describing this process could be called “Volume Farming” and is exactly what makes Statera unique amongst DEFI projects.
Why two tokens?
Statera (STA) is a deflationary ERC-20 token which serves to supercharge any liquidity pool in which it is incorporated by increasing trade volume. Crucially, there is a 1% token burn on every single trade – this means those tokens are removed from circulation permanently and so the token is deflationary.
The Sister token Wrapped Statera (wSTA) does not have the same 1% burn function and so is not deflationary. WSTA can only be minted by wrapping STA. Some AMM protocols such as Balancer and Beethoven don't work with deflationary tokens directly and so wSTA is used for interacting with these protocols. However, as WSTA is traded in various funds it changes price and creates an arbitrage opportunity between WSTA<>STA to bring the tokens level in price and so STA is still burnt when it is arbed back 1-1.
How does the Statera Ecosystem actually work?
The 1% burn applies to all actions taken involving STA;
Gradually, over time deflation creates upward price pressure. When the price between STA and wSTA diverges, this creates an arbitrage opportunity for bots or holders via simply wrapping/unwrapping their STA. This means there's always a financial incentive for someone to “arb” (conduct arbitrage) and results in the STA/wSTA price constantly returning to parity (or as close as possible).
In pools with a balancing mechanic (ie: Beethovenx Pools) this also has the benefit of increasing transaction volume within the pool, thus increasing fees paid to the pool and overall APY.
In other words, the whole ecosystem is designed to constantly generate transactions, which in turn creates more trade volume – this then means more fees (APY) paid to LP providers and with deflation caused by the 1% burn on all these TXs the token is literally hardwired to become more valuable over time.
Statera's total maximum supply has already decreased to less than 79% of it's original 101m after only a year and a half.
Long Term Vision of Statera
Because Statera has the function of decreasing volatility and also of increasing passive income potential, it can be used by any indexed fund of digital assets, even including traditional stocks.
If you introduce Statera into the fund, it introduces deflation and therefore upwards price pressure on those other assets.
In this way Statera aims to bring DEFI out of the crypto bubble and into the mainstream.
Statera is set up to be fully decentralised as it's original contract is immutable. It was burned (just like Bitcoin's), so effectively no one “owns” Statera but the holders themselves. This sets it apart from the vast majority of cryptocurrencies which still largely depend on centralised control.
The Statera Pairs & Pools
There are several pools to choose from based on an individual’s risk appetite. The main ones are:
Dante Inferno Pool
This portfolio, held on BeethovenX protocol / Fantom Network contains;
◾️ wSTA (30%),
◾️ wETH (20%),
◾️ wBTC (20%),
◾️ wFTM (20%),
◾️ BEETS (10%).
Beethoven pools work by maintaining the ratio of currencies pooled in the fund. This fund diversifies your holdings, automatically takes profits, and buys dips for you.
Fees generated by the fund rebalancing are added back into the fund which grows its value over time. It is possible to add just one asset and so you do not need to provide liquidity in all 5 assets.
This fund contains equal pairings of STA and wSTA tokens. It acts as the primary method of arbitrage between the two, and enables wSTA to influence burn on the STA token.
Both assets are directly linked to the price of Statera, resulting in a negligible amount of impermanent loss, while earning STA and wSTA through trade fees.
This suits those who prefer to bet on the performance of Statera alone without holding any of the other blue chip tokens.
Focus is on Fantom Network for Statera and the deepest liquidity exists on Spookyswap and Beethovenx.
Statera's recent move to Fantom Network represents a new chapter for the project and an exciting opportunity for the savvy investor. For a very long time Statera's ecosystem was severely hindered by excessive Ethereum gas fees which prevented the majority of important micro-trades occurring. Now on Fantom with minimal tx fees there's no limit to how much volume can be created and how big the Statera project can grow.