>I DON'T UNDERSTAND WHAT IT DOES, EDUCATE ME user! 1/2
Starting off with basics: 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.
Statera is an AFRICAN PROJECT The team is mainly AFRICAN You are buying a literal NIGGERCOIN.
Charles Jones
>I DON'T UNDERSTAND WHAT IT DOES, EDUCATE ME user! 2/2
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.
Now add to the above all the demand action from wanting to buy and hold or buy and trade.
Someone post the ranks based on holdings my lovely anons
Luis Hill
Post THE TEAM you STUPID FUCKING IDIOT. Show WHERE THEY COME FROM. It is AFRICA.
Jack Bell
Thank you based user, good write up and it’ll help normies learn what they’re missing out on, STA is truly the king of defi. Grossly underrated and it deserves to be put in the public eye. Many people missing out on great gains.
Leo Richardson
You will be the nigger when we are winning and standing in the hall of fame.
Luke Jackson
You say the price is supposed to keep increasing, yet the price keeps decreasing instead.
Don't listen to this idiot, he is so invested into this that he needs people to buy it and drive up the price so he can sell it and get the fuck out of it.
This is just a scam coin with no purpose.
Chase Williams
How does it feel knowing that an African team is x100000 richer than you, my poor fag user?
Alexander Gutierrez
STA is a great idea , but until the returns happen.,people won't trust it.
