Statera’s Twist: Deflation and Balancer Loop

Finance + Deflation

Coincidentally (or maybe not), the logo or icon of Statera matches with the concept that I learned from their whitepaper and that is the loop of balancing and deflating: (1) to start the loop, the price of the assets in the balancer needs to change due to market etc., (2) this triggers balancing where always STA needs to be either added or substracted, (3) 1% of STA is burned due to the transaction occurred in balancing, and (4) here is the twist that the price of STA changes due to deflation which triggers rebalancing which triggers deflation again and the process repeats in an infinite loop. In concept, deflation occurs infinitely which can make your imagination go wild of how much the price can increase due frequent deflation. Well I do think that rebalancing does not occur in micro level but macro level where there is threshold for rebalancing which does not necessary occur everytime a deflation (1% transaction burn) occurred. Disclaimer: I am newbie and I only read the whitepaper once, the information I wrote may not be accurate.
Statera is designed to be an investment where currently is suited to be put inside an index fund and mutual fund. By having STA in the funds or portfolios, they can enjoy the benefit of STA’s deflation where deflation most likely pressures an up-price. Currently Statera have three index fund which are Delta Token, Delta Liquidity Token, and Statera Phoenix Fund. The source of the image is from Statera’s whitepaper where it shows Delta Token a 50% wETH and 50% STA, Delta Liquidity Token a 25% STA and 50% ETH, and Statera Phoenix Fund a 40% Delta Token, 30% wETH, 10% SNX, 10% LINK, 10% wBTC.

Getting their Index Fund

Delta Token

Delta Token Pool

Phoenix Fund

An Open Cryptocurrency

If you are new to cryptocurrency, then you probably want to read this section, otherwise I recommend you to skip. Statera (STA) is an Ethereum token open for anyone to participate in. The transaction and smart contract are transparent where you can see for example on etherscan.io. Well, if you don’t have the ability and the time to evaluate their smart contract, you can trust the audit conducted by Hacken. You can find the full report at their Github.

Decentralization

Decentralized Finance

Mirrors

this blog contains all my articles licensed under creative commons attribution customized sharealike (cc-by-sa) where you can sell but mention the open one here

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