Statera

Statera: First Cryptocurrency Index Fund Token

Statera is the first Cryptocurrency index fund Token, used in conjunction with a balancer protocol. Statera is composed of 5 Cryptocurrencies, Wrapped Bitcoin (WBTC), Wrapped Ethereum (WETH), Chainlink (Link), Synthetix (SNX) and Statera (Sta). It consists of all five tokens holding an equal value of 20% of each, that is pooled in the Balancer Protocol. The Balancer Protocol is the pooled sum of of the 5 tokens. Balancer Protocol main objective is to maintain the equal value of each token and is where individuals can add funds to be pooled together.

Statera Token

Statera Token is smart contract powered Indexed Deflationary Token (IDT) that is trustless. IDT tokenomics derives from the burning of a portion of the Statera supply with each transaction. Which decreases supply and increases value over time. Trustless means that no one person or organization is managing the project. The balancer protocol maintains equal value of each token pooled and funds are derived from individuals investing or pooling funds into the balancer.

Balancer Protocol

Balancer Protocol or Balancer pool is an automated market maker, which automatically balances the portfolio based on prices. Balancer is essentially using the safety of an index fund, similar to that of large well known index funds. However instead of paying portfolio managers it relies on the Balancer protocol to maintain balance. For example, if each token's balance is $2000 each the total pool is $10,000. If one of the coins increase by say 500, the total pooled sum is now $10,500. This causes the Balancer to sell and buy coins in the pooled fund to make sure each one has equal value of 20%. Balancer adjust each coins balance to $2100 each adding up to the new $10,500 pooled fund amount. Apart from this individuals who add funds to the pooled funds, receive certain percentage of the transaction fees.

Economics

Though still in its infancy an economic report was made for Statera. In this financial report it is valued for its novel way to invest in a Cryptocurrency token, which is tied in an index fund to four other tokens. The value is derived from the growth of the index tokens and the deflationary mechanism that Statera uses. The other four tokens WBTC, WETH, SNX and Link, were chosen because of their good standing and adoption in the market along with the high volume. The volume is essential as individuals who pool funds into the balancer protocol receive transaction fees. Similar to how an index fund would charge a fee for managing the fund. Individuals in this trust-less fund receive the fees similar to index fund managers. Currently the volume of transactions has surpassed 40,000 usd. The conclusion to the report was that Statera had potential of the STA token price and from the increase of the Portfolios balance (Balancer) which are over 300,000 usd.

References

This article "Statera" is from Wikipedia. The list of its authors can be seen in its historical and/or the page Edithistory:Statera. Articles copied from Draft Namespace on Wikipedia could be seen on the Draft Namespace of Wikipedia and not main one.

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