$STATICS is the liquidity + credit layer + arb-flow fee engine on RHC 📈
The 5,555 Operator NFTs earn from trading fees, game revenue, credit penalties & more 💰
Credit is live, enabling you to borrow against the NFTs & loop ⚙️ Here's what just 5 Operators could generate 👇
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CryptoApe23 retweeted
Liquidity incentives.
Most DEXs have them.
@StaticsProtocol will not be any different.
We are not a ve(3,3) clone, however.
I have borrowed a lot from the bribes and gauge systems made famous by Curve and Aerodrome, but this is not the same.
Let us look at what we have here.
$STATICS has a Gauge Reserve.
Each week a % of this reserve is allocated to liquidity rewards.
These rewards are then distributed to market LPs who have ACTIVE RANGE liquidity.
Each week $STATICS stakers can point their stake at any pool they choose.
For example, if I have 100K $STATICS staked, I can direct 50K to Pool A and 50K to Pool B.
If I was the only staking allocator in the system, then the weekly rewards budget would go 50% to Pool A and 50% to Pool B.
Those rewards are then distributed to the LPs based on active liquidity like a classic gauge. If there is no liquidity to reward those rewards are recycled back through the guage.
We also built a bribe system internal to this that allows market creators to choose up to 4 reward asset slots that can be permissionlessly funded.
A creator can split these slots between LPs and $STATICS allocators. This creates incentives for LPs as well as stakers to allocate more protocol rewards to your LPs.
If a creator wants to attract LPs, they could choose 80% LPs and 20% allocators, for example, and because there are 4 available slots, you are not stuck with one asset for incentives.
The Gauge Reserve, which holds the gauge rewards budget, releases a configurable % of its total balance each week.
If it is set to 5% and holds 10M $STATICS, the first week would release 500K $STATICS for protocol incentives.
This reserve will be perpetually funded by buybacks as well as from trading and activation fees received by the treasury.
See, no programmatic burns are starting to make a lot of sense, aren't they?
If this reserve grows to 20M and is set to 5%, the next week's reward budget would be 1M $STATICS.
So not the same as ve(3,3), but similar and designed from first principles to recycle $STATICS instead of infinite mints and infinite sell pressure.
Couple this with the fact that $STATICS is needed to allocate as well as earn standard rewards, and things look real interesting.
Seeing a bunch of $LEVERCAT whales accumulating $HYLOCAT using Chuds stonkboard robot mines.
Makes sense. Once it starts holding 1m it’ll be eligible for the airdrop and should see some fomo similar to the others.
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$KNOTS vs $STONKCAT vs $RAYCAT
Compare modeled rewards, APR and APY on The Stonk Board. thestonkboard.com/compare/v1…
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$STONKCAT seems like a bargain here according to @AgentChud's new Stonk dashboard.
Paired with $Stonk
1,900% APR / 7.5B% APY
1.2M in Liquidity
4M in volume in the last 24hrs
Higher for the Stonk Cat
thestonkboard.com/coin/DkPQv…
CryptoApe23 retweeted
There’s a lot going on with $STATICS, and I’m still learning.
I’ll try to share what I’ve learned from the dev during his streams with @ggdoxyz, in plain English so everyone can follow along.
@StaticsProtocol is building a DEX on Uniswap v4 using hooks, with Basket Tokens and self-secured credit as key parts of the system.
A Basket Token can hold up to 16 underlying assets.
The mix is fixed at creation. You mint by depositing that exact bundle, and you redeem by burning the basket for the underlying assets.
Each basket trades against the assets inside it through separate Uniswap v4 pools.
That creates arbitrage opportunities when the price of an underlying asset moves elsewhere.
You can use multi-asset flash loans to borrow the underlying assets, mint the basket, trade it into the pools, capture the spread, repay the loan, and pay the gas.
You can also do the reverse: buy the basket, burn it for the underlying assets, then sell them to capture the spread.
Then there’s $STATICS staking.
You stake $STATICS, choose the assets you want rewards from, and your stake can earn a share of fees from eligible pools trading those assets.
Operator NFTs add another layer.
Each one is backed by 180K $STATICS.
Once credit goes live, you’ll be able to borrow up to 95% of that backing, or 171K $STATICS, without a price oracle or price-based liquidation.
You can even stake the borrowed $STATICS.
There’s also a second credit system where you deposit Basket Tokens and borrow their underlying assets.
Operator NFTs also have ETH backing. A percentage of $STATICS trading fees goes into their ETH reserve, allowing the amount of ETH backing them to grow as fees come in.
You can also link an Operator NFT to a staking position to increase your staking weight.
So you have Basket Tokens, arbitrage, flash loans, staking, self-secured credit, and Operator NFTs all connected within the same system.
The token, Operator NFTs, and STATICS/WETH market are already live. The broader DEX and credit features are still being built.
That’s what I’ve understood so far.
I’ll keep sharing what I learn.
You don't own enough $STATICS
STATICS Protocol: Arbitrage is the Engine
Read about our thesis on basket tokens and correlated assets and why we are building on @Uniswap and @RobinhoodCrypto
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CryptoApe23 retweeted
STATICS Protocol: Arbitrage is the Engine
Read about our thesis on basket tokens and correlated assets and why we are building on @Uniswap and @RobinhoodCrypto
I think enough weak hands have sold their $hookr for us to make new highs and really run hard.
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