Statera balancer explained

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.

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that explains everything thanks.

Nice work brudda

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Strong work fren

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What are the downsides to pooling

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

Can a poorfag put only sta in balancer pool?

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

No problem idm. Stay out.

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

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

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.

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

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

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.

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

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

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?

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

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.

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

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

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. :/

Nice organic thread user.

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

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DELETE THIS

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

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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

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