Statera balancer explained

[Anonymous No.22231758]

Since I feel like most people don’t understand how it works I’ll leave an explanation here.

Ok, so the Phoenix pool has 5 tokens in it: Link, wEth, wBtc, SNX, Statera Delta (50% sta 50% eth)

Let’s take an example. In the beginning, all of the 5 tokens were worth $1000, so the pool size was $5000.

Now, say all other 4 tokens remained at their old value ($1000 / token), but STA did a x10, so STA value in pool is now worth $10,000.

That's much more than 20% of the pool, so the balancer must balance it out. Note that now the pool size is $10,000 (STA) + $4000 (other 4 tokens) = $14,000.

So, to balance it out, each token should now have value of $14,000 / 5 = $2800.

To reach this goal, the balancer must sell the excess STA, and that would be $10,000 (current worth of STA) - $2800 (the new target worth of STA) = $7200.

The balancer (Thanos) sells the excess on various exchanges to which it has a trading bot interface to. Currently, it's only Uniswap. Note that by selling, it performs transactions, and thus burns tokens, so the supply also decreases.

So, now that the balancer has sold the excess STA, it obtained $7200 dollars (say, in DAI coins).

Now, to balance out the other 4 tokens, it must buy $7200 / 4 = $1800 worth of each token.

So, it buys $1800 worth of ETH, $1800 worth of LINK, etc.

In the end, it's all balanced at 20% for each token - all 5 tokens are now worth $2800 dollars each! And the total pool size remained at $14,000 dollars - so no value was lost! Plus, you also get the trading fees, which are added to the pool.

[Anonymous No.22231790]

that explains everything thanks.

[Anonymous No.22231818]

Nice work brudda

[Anonymous No.22231922]

>>22231758
Strong work fren

[Anonymous No.22231972]

What are the downsides to pooling

[Anonymous No.22231985]

>>22231758
No, i'm not going to buy your shitcoin.

[Anonymous No.22232108]

>>22231758
Can a poorfag put only sta in balancer pool?

[Anonymous No.22232133]

>>22232108
You can pool Sta and Eth on Uniswap, thats the Delta pool. 50% of both

[Anonymous No.22232146]

>>22231985
No problem idm. Stay out.

[Anonymous No.22232181]

>>22232133
Checked. So I need an equal ratio of all coins in the pool to participate, regardless if delta or phoenix?

[Anonymous No.22232212]

>>22232181
On Delta which happens on Uniswap, you need to have an equal amount worth in dollars of Sta and Eth.

On Phoenix which happens in Balancer instead of Uniswap, it’s weighted: STA Delta/wETH/wBTC/SNX/Link at ratios 40/30/10/10/10

[Anonymous No.22232242]

>>22231972
If Statera moons, the balancer will sell Statera to buy the other coins where you would might’ce been better off on just holding Statera instead of pooling it. But then again in that case, you miss out on fees gained from pooling it.

[Anonymous No.22232334]

Great explanation anon. Much better than the copy pasta wall of texts as of late :)

[Anonymous No.22232350]

>>22231972
tl;dr
>smaller risk but you earn the fees
>you miss on moonz
>so pool top and unpool before pumps to get the most out of it

[Anonymous No.22232370]

>>22232334
Yea I think whoever is making the threads should stop posting the pastas. The stags of early days were much more enjoyable to skim through.

[Anonymous No.22232383]

>>22232181
You only need one coin in Phoenix, the balancer will hande the swaps for you but it might cost more.

[Anonymous No.22232429]

>>22232212
>>22232383
Roger that, now the only thibg i have to do is stop being poor.

[Anonymous No.22232482]

>>22231758
How often are the funds balanced? I guess you need to avoid doing too many transactions when volatility gets crazy.

Who pays for the fees of those transactions?

[Anonymous No.22232651]

>>22232181
You can single pool on Phoenix, however you eat some slippage for the lesser % tokens. You do however get balancer - BAL tokens, airdropped for providing liquidity and pool fees.

It’s still insanely early, our pool is like 3-400k while statera / delta is right down. Only 80 + holders, when more start supporting the ecosystem this will boom

[Anonymous No.22232702]

>>22232482
It happens all the time, the balancer does it automatically.

Not sure about fees, but I can tell you that the return outweighs it easily.

To calculate pool return in 24h: take fees/24h liquidity, right now its below the average of the usual since so many have unpooled and expect Sta to moon, but the return is still enormous. Currently it is $878/$477000 = 0.0018 = 0.18% return a day. To calculate profit in 30 days, you take (1+0.0018)^30 = 1.0567 = 5.67% return a month. Remember the returns are compounded and since balancing happens 24/7 the returns are actually larger than that. As Statera grows so will the returns.

[Anonymous No.22232721]

>>22232702
Data taken from Uniswap: https://uniswap.info/pair/0x59f96b8571e3b11f859a09eaf5a790a138fc64d0

[Anonymous No.22232808]

>>22232702
So in a year thats almost a 93% return. Jesus.

[Anonymous No.22232811]

Thanks for this, op.
Explains it very well. I hold Statera and haven't pooled yet, but I am expecting a pump too (it doesn't like staying under 10c for long) so I might actually buy some more and then pool later on.
Also, I can't help but feel that gas fees are hindering Statera at the moment. So many people don't wanna spend $25+ to make a single buy. :/

[Anonymous No.22232827]

>>22231758

Nice organic thread anon.

Just one thing to point out though, if STA x10 and the pool is weighted with STA delta, the STA delta will only x5 since it’s half eth and eth didn’t move

[Anonymous No.22232830]

N

[Anonymous No.22232857]

I

[Anonymous No.22232879]

G

[Anonymous No.22232880]

G

[Anonymous No.22232899]

E

[Anonymous No.22232915]

N

[Anonymous No.22232928]

R

[Anonymous No.22232947]

>>22232915
DELETE THIS

[Anonymous No.22232956]

>>22232827
Oh that’s right. This changes nothing though, point still stands.

[Anonymous No.22233042]

N

[Anonymous No.22233080]

>>22232827
Sounds like a simple case of risk/reward to me
You can risk all your STA for massive gains, or you can pool for medium gains from the eth safety net

[Anonymous No.22233178]

how often this update and balancing is done?

[Anonymous No.22233189]

>>22231758
>Note that by selling, it performs transactions, and thus burns tokens, so the supply also decreases.
No. When I sell on binance I don't make an eth transaction mongoloid
>>22231758
>In the end, it's all balanced at 20% for each token - all 5 tokens are now worth $2800 dollars each! And the total pool size remained at $14,000 dollars - so no value was lost! Plus, you also get the trading fees, which are added to the pool.
>>22231758
>all 5 tokens are now worth $2800 dollars each! And the total pool size remained at $14,000 dollars
So what?
First these are things that I eventually can do manually there is no purpose in this coin
Second: if two coins in the pool go down but STATErA Keeps on going on you lose a lot of money cause you sold liKE a mongoloid to balance the 20% shit

shit's retard.

[Anonymous No.22233192]

>>22233178
24/7 it’s automatic

[Anonymous No.22233213]

>>22233189
Second: if two coins in the pool go down but STATErA Keeps on going up*

[Anonymous No.22233297]

>>22233189
Don’t really understand the first STAtement? It’s not on Binance at least yet, and if it was you would be trading the wrapped Delta token so the burn would still happen in Uniswap from that transaction.

The second STAtement, sure you can do it manually. But can you do it 24/7 and be emotionless on top of that to ensure maximal profit? Didn’t think so. If two tokens AND Statera went down, then it would sell the other tokens to buy more of those three once they do go up. Also, do you really think that BTC, ETH, LINK and SNX will fail especially considering the bullrun? A bet on Statera is a bet on crypto in general.

[Anonymous No.22233311]

>>22231758
oh my gaaaawd sell your fucking bags

[Anonymous No.22233359]

>>22232808
That’s correct. In reality it’s over 100% due to it happening 24/7 and returns being compounded + the current stats are below average. We are early anon.

[Anonymous No.22233397]

>>22231758

but STA wont do a 10x in a second so along the way to get to the moon you will lose a lot of STA to balance out the balancer so if your pooled STA gains 10x in value over some months if someone was just holding STA he probably 25x'ed or more right ? sorry bad at expressing that thought

[Anonymous No.22233435]

>>22233397
Yup. Holding only Sta is a bigger bet on Sta to succeed but it’s a bit riskier as well + you lose out on the fees from the pool that would offset some of those losses.

[Anonymous No.22233487]

>>22233435

i think thats very important to clarify because a lot of brainlets believe that buying STA only makes sence if you pool it even tho thats not true

[Anonymous No.22233529]

>>22231758
scam.

[Anonymous No.22233691]

>>22231758
blessed anon, your devotion shall be remembered

[Anonymous No.22233706]

Can the value decrease by pooling, or is it "locked"?

[Anonymous No.22233815]

>>22231758
How do you get fees exactly? Also, what events cause STA to get burnt?

[Anonymous No.22233998]

>>22233706
The value isn't locked as such (if the price of Sta and everything else on the pool goes down, then so will your holdings), but the loss will be mitigated so you lose a lot less than just holding Sta if the price goes down

[Anonymous No.22234066]

>>22233815
Every transaction when the balancer sells or buys Statera for other tokens burns 1% of the amount involved, thus creating positive price pressure. Of course, this applies for you and me just buying Statera too.

The fees work the same as for every other liquidity pool. You provide liquidity to the ”network”, earning you fees that are automatically put back into the pool to compound.

[Anonymous No.22234122]

>>22233706
Read this
>>22233998

I want to add that it’s highely unlikely Sta, Eth, Btc, Link, Snx all go down. That’s the only way this can fail. In that case crypto would be dead, and I don’t think anyone here thinks crypto is going away anywhere, quite the opposite.

[Anonymous No.22234152]

>>22233815
Fees are added to your holdings every time a trade is made.
You don't see them 'separately' to your holdings.
Think if the way Coinbase Or Binance take a slice of every trade you make. Here, it's YOU getting that slice.
Sta is burnt every time one of the following happens:
Statera is bought or sold
Delta (Sta-Eth) token is bought or sold
Delta is added or removed from the Balancer Pool (the pool has to re-balance by trading Delta and the other 4 tokens)
The price of one of the other 4 tokens goes up or down (see above) - as you can imagine, there's a a LOT of burning going on as all the assets in the pools are being traded all the time, and that will continue.
There's been almost 15 million Statera burned so far, in just over 3 months!

[Anonymous No.22234379]

>>22233297
>If two tokens AND Statera went down, then it would sell the other tokens to buy more of those three once they do go up.

Exaample: In the pool STA goes down 30%, Link goes down 10% and ETH goes down 5%
BTC and STX are crabbing/stable.

How does STA behaves in this case?

[Anonymous No.22234776]

>>22234379
The balancer sells BTC and SNX to buy Link, Sta, Eth since they are not dropping to balance the pool. Everything needs to be equal of value in dollars. You will then earn fees and BAL airdrops as a reward for pooling. Once Link BTC ETH STA go back up you will have more of those to profit more. This makes price growth stable over time just like the S&P500 in stocks.

[Anonymous No.22235442]

>>22232702
Based

[Anonymous No.22235618]

>>22234776
>. You will then earn fees
where do these fees come from?

[Anonymous No.22235748]

>>22235618
There's a small percentage taken from every trade on uniswap, for every single token.

See: Liquidity Provider fee

[Anonymous No.22235791]

>>22232702
>To calculate pool return in 24h: take fees/24h liquidity, right now its below the average of the usual since so many have unpooled and expect Sta to moon, but the return is still enormous. Currently it is $878/$477000 = 0.0018 = 0.18% return a day. To calculate profit in 30 days, you take (1+0.0018)^30 = 1.0567 = 5.67% return a month. Remember the returns are compounded and since balancing happens 24/7 the returns are actually larger than that. As Statera grows so will the returns.
Returns of what?
What you mean with pooling?
Example I have 100'000 DAI and I want to earn 5% month lik you said.

I have to pool. How do I pool the DAI?