/biz/ - Business & Finance

1/2
market cap = supply x price

As an example for 5,000 supply at $2: $10,000 = 5,000 * $2

Whenever STA is traded between wallets, 1% gets burnt. Now let’s assume two things:

1- Volume of 50,000 STA gets traded, causing 500 STA to get burnt reducing the supply to 4,500

2- Ignore the demand/price force for STA’s utility (for now)

Since we are ignoring demand, the market cap will remain the same. This burn will therefore cause price to increase:

10,000 = 4,500 x p, which means price should theoretically be pushed to 2.22.

This price increase will cause the STA value in Balancer (or Phoenix) to increase, forcing the pool to rebalance. Rebalancing means selling STA and buying the other 4 coins to keep the percentages as initially agreed upon (50 ETH / 20 STA / 10 BTC / 10 SNX / 10 LINK). Now remember, selling STA will cause STA to be burnt again (supply decreasing), causing a ripple effect: the cycle will keep repeating itself at a decreasing rate, even if no further human-triggered trades happen.

10€ eoy

>>23497371
Now we can talk about STA’s utility: why would people demand STA? What does it do?

Balancer gives a return of 1% of total transactions volume that happened from all the rebalancing. Remember, rebalancing does not only happen from STA’s ripple effect mentioned above, but it also happens when the other 4 coins move in price (which by the way means more STA is burnt). That 1% on volume does NOT mean you get 1% on what you are pooling. It means the following:

Example: if you are pooling $10,000 and there is a total of $100,000 being pooled, with a 24h rebalancing volume of $50,000, then you will receive = ($50,000 x 1%) x ($10,000 / $100,000) = $50. Your daily rate of return is therefore $50 / $10,000 = 0.005, which means an annual rate of return of 0.005 * 365 = 183%. People called Phoenix’s return as scam because they are high, but they are not a scam but actually STA’s genius.

A lot would be very happy with such return, making them want to pool. You would think that as the pool gets bigger, your portion of the reward gets smaller but remember that when people pool, STA is being transacted and burnt, causing the rebalancing volume to rise and therefore increasing the 1% total reward as well.

The Balancer also balances liquidity / fee income demand: if liquidity provider believe they can get higher interest in other defi, they will remove their liquidity from Balancer. But then this leads to an increased fee income to those who have not removed their liquidity (MINDFUCK). Keep in mind all this burns STA as well.

Now add to the above all the demand action from wanting to buy and hold or buy and trade.

Whether you think it has value or not, no one can stop it. People will want to earn high interest income. Balancer will keep balancing. Statera will keep burning. And the tokenomics in my OP will keep repeating itself.

>>23497371
>>23497383
if u dont have a bag after this ur beyond help

any info on this project?

https://etherscan.io/token/0x71a9b32b17c721878b317886245b255e39612940

>>23497366
This is one of the biggest meme scams to ever land on biz. It was a pnd from the summer. It’s hilarious that there’s bagholders that still believe in it. Look at that volume lol.

>>23497431
im sure the xsta devs will surface to steal another $800 from the pajeets under this new name

>>23497403
bagholder cope

>>23497486
baglet cope

Get out of this shitfest and buy LIT

>>23497560
>lost 5 eth
>calling others baglets
????

>>23497366
Stay strong anons we'll survive and make it back home

>>23497560
>$90k volume
It’s literally just biz that is stupid enough to buy this trash fucking topkek

>>23497366
I'll drop 60 thousand USD on this coin soon.

Hold the Line