Steadefi Review: Highly Profitable Protocol That Investors Should Know
The Steadefi protocol relieves users of the burden of ongoing position management and protracted downturns in the cryptocurrency markets. It offers significant and sustainable profits to users. So what is Steadefi? Let’s find out about it with Coincu through this Steadefi Review article.
What is Steadefi?
The Steadefi protocol relieves users of the burden of ongoing position management and protracted downturns in the cryptocurrency markets. It offers significant and sustainable profits to users. Steadefi achieves this by employing a combination of innovative strategies designed to optimize capital and profits.
One of the most remarkable aspects of Steadefi is its presence on the Arbitrum and Avalanche networks, two prominent platforms in the DeFi space. This dual-network compatibility enhances accessibility and liquidity, ensuring that users can seamlessly engage with the protocol and maximize their potential earnings.
To maintain a streamlined and efficient operation, Steadefi focuses on supporting two primary types of assets within its strategies: USDC and AVAX. This selectivity is a strategic choice, aimed at providing users with the most secure and reliable options for yield generation.
Steadefi’s unique approach also extends to the management of collateral. Users can participate by providing collateral to Steadefi’s vaults, which are structured within segregated lending pools. This segregation of lending pools helps manage risk effectively, as each pool is limited to its own specific vault type. This compartmentalization ensures that risk exposure is controlled and that any adverse events in one pool do not adversely affect the entire system.
Adding to its sophistication, Steadefi employs an automated risk management system managed by intelligent bots. These bots, referred to as managers, play a pivotal role in maintaining the health and security of each vault. They continuously monitor various parameters, including the debt ratio, to make informed decisions that safeguard user funds and optimize returns.
Highlights of Steadefi
Delta-Neutral Strategies
Steadefi’s delta-neutral strategy vaults have garnered attention for their effectiveness in managing market movements. These strategy vaults are meticulously tested to handle various market conditions by carefully balancing both long and short positions. This unique approach allows investors to focus on generating yields without being overly concerned about the price fluctuations of the underlying volatile assets.
Impermanent Loss (IL) Mitigation
Impermanent loss can be a significant concern for investors, especially those engaging in leveraged yield farming. Steadefi takes this issue seriously and provides robust countermeasures. In addition to autocompounding the yields from underlying protocols, their strategy vaults execute “rebalances” based on debt ratios and delta thresholds. These measures help minimize the impact of impermanent loss over time, providing investors with more stable returns.
Eliminating Liquidation Risks
Leveraged positions can lead to liquidation in the face of adverse market movements, resulting in substantial losses. Steadefi has introduced a novel approach by eliminating the need for liquidation. Their strategy vaults do not employ liquidation functions, ensuring that bad debt ratios are automatically prevented through intelligent rebalancing mechanisms.
Transparent Returns with Real APR & PnL
One common issue in the cryptocurrency market is the unpredictability of returns and misleading Annual Percentage Yields (APYs). To address this, Steadefi offers clear and honest data through APRs and Profit and Loss (PnL) tracking. Users can make informed decisions by using historical data and vault analytics to create and implement a well-informed market strategy.
Automated Position Management
Managing market-neutral positions and rebalancing them manually can be time-consuming and complex. Steadefi streamlines this process by automating everything. Users can deposit their assets and watch as yields are automatically compounded into their principal, offering a hassle-free investment experience.
Aligning Risk with Reward
Steadefi recognizes that different investors have varying risk tolerances. To cater to this diversity, they create isolated lending pools tailored to each user’s risk profile. Conservative lenders’ assets are utilized for low-risk vault leveraging, while more aggressive lenders’ assets are dedicated to higher-risk vault leveraging. This ensures that yield rewards align with the user’s risk threshold.
Profit-Sharing for Lenders
Unlike previous lending-borrowing protocols that relied heavily on utilization rates, Steadefi offers a unique benefit to lenders. In addition to competitive utilization rate interest returns, lenders also share in a percentage of yields from the borrowing strategy vaults. This guarantees returns even during low utilization periods.
Protection from Negative APRs for Borrowers
Negative Annual Percentage Rates (APRs) can erode borrowers’ positions over time, but Steadefi guarantees protection against this issue. Borrowers, in return for sharing a portion of their yields with lenders, will always pay a borrowing rate that is below their yielding APR, ensuring their positions remain sustainable.
Diverse Yield Sources
Steadefi stands out by building on a diverse set of underlying yield sources, including liquid staking, perpetual dex, and UniV2-style liquidity. This diversity ensures that both lenders and borrowers can find the best yield sources regardless of market conditions.
Comprehensive Backtesting
To provide users with reliable and profitable strategies, Steadefi conducts comprehensive backtesting on all strategy vaults under various market conditions. This commitment to testing and fine-tuning ensures that users can make informed investment decisions.
How does Steadefi work?
The platform’s innovative lending system allows users to earn up to 3x returns on their assets while participating in the DeFi ecosystem.
The three vault types available on Steadefi are AMM Swap, Perpetual Exchange, and Liquid Staking. Each of these vaults provides a unique opportunity for users to maximize their assets’ potential.
- AMM Swap Vault: This vault type allows users to engage in Automated Market Maker (AMM) swaps. Users can deposit their assets into the AMM Swap Vault and earn returns through the platform’s internal lending system.
- Perpetual Exchange Vault: Steadefi’s Perpetual Exchange Vault offers users the chance to participate in perpetual futures contracts, a popular financial instrument in the cryptocurrency space. By depositing their assets into this vault, users can access leveraged trading opportunities while earning attractive returns.
- Liquid Staking Vault: Liquid staking is gaining popularity in the DeFi sector, and Steadefi is at the forefront of this trend. In the Liquid Staking Vault, users can stake their assets and participate in network validation, all while enjoying the benefits of the platform’s lending system.
Lending Vaults
When users deposit assets into one of the vaults, they receive ibTokens that represent their deposits and track the amount deposited as well as any interest earned. The balance of ibTokens is proportional to the user’s stake in the lending pool and accrues interest with each block.
Each lending group on Steadefi has its unique ibToken. For instance, if a user decides to lend AVAX to the protocol, they will receive ibAVAX tokens that correspond to their deposit.
One of the notable aspects of this lending system is the dynamic exchange rate between ibTokens and the original tokens. Initially set at a 1:1 ratio, this rate will change as assets within the lending pool are borrowed. As the lending pool generates interest in the form of native tokens, the ibToken exchange rate will begin to increase. The rate is calculated based on the total amount of original tokens divided by the total amount of ibTokens.
Strategy Vaults
Steadefi introduced a cutting-edge strategy vault that allows users to automatically aggregate AVAX/ETH profits from transaction fees on GLP while predicting an increase in the price of GLP in the future.
This innovative approach leverages x3 leverage for capital, potentially tripling the profits of savvy investors. At the heart of this new offering are svTokens, which serve as “deposit receipts,” enabling users to participate in this lucrative venture.
Unlike traditional investment vehicles, where returns are solely based on yields earned, svTokens operate on a unique principle. They represent the total value of an individual’s vault position, a value that may fluctuate over time based on the performance of the strategy vault.
When a user opens a position in one of Steadefi’s strategy vaults, they are issued “strategy vault tokens.” These tokens are a digital representation of the user’s ownership share in the vault. Crucially, the value of svTokens is not solely determined by the yields generated by the vault. Instead, it closely mirrors the overall value of the underlying strategy vault, which can experience fluctuations.
The key benefit of this approach is the potential for significant profit generation. If a strategy vault generates profits, the value of the corresponding svToken will increase in tandem, allowing users to ride the wave of success. Conversely, if a strategy vault’s overall value declines, the value of its svToken will decrease, reflecting the performance of the underlying assets.
Steadefi’s tokens
SDY Token
Key Metrics
- Name: Steadefi token
- Symbol: SDY
- Chains: Arbitrum, Avalanche
- Max Supply: 200,000,000 SDY across all chains
Use Cases
SDY is the native token of Steadefi. It is 1:1 bridgeable to deployed chains, with Chainlink’s Crosschain Interoperability Protocol serving as the token bridge (CCIP). One SDY may be quickly turned into one esSDY.
Token Allocation
esSDY Token
Key Metrics
- Name: Escrowed Steadefi
- Symbol: esSDY
- Chains: Arbitrum, Avalanche
Use Cases
The non-transferable “escrowed” SDY token is known as esSDY. It may be acquired by instantaneously converting SDY to esSDY at a 1:1 ratio or provided as a reward for providing liquidity through Steadefi’s Farms.
The option to deploy esSDY toward a portion of platform dividends or toward increasing the user’s yield rates is the currency’s main benefit. Later on, esSDY will be used for platform governance and access to a number of special product features.
Steadefi’s Team
Steadefi’s team is data-driven and skilled, with a varied group of software engineers and DeFi experts dispersed around Hong Kong, Indonesia, Japan, and Singapore. This indicates that they naturally create different yield goods and tactics.
Conclusion of Steadefi Review
Steadefi can provide customers with a broad range of options based on its market prospects, all the while ensuring the strategies are affordable for everyone, from delta-neutral leveraged yield farming to permanent DEX liquidity vaults. So, through this Steadefi Review article, we have more useful information about it, and hopefully you can have more choices to invest.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Author
Other Reviews
Steadefi Review: Highly Profitable Protocol That Investors Should Know
The Steadefi protocol relieves users of the burden of ongoing position management and protracted downturns in the cryptocurrency markets. It offers significant and sustainable profits to users. So what is Steadefi? Let’s find out about it with Coincu through this Steadefi Review article.
What is Steadefi?
The Steadefi protocol relieves users of the burden of ongoing position management and protracted downturns in the cryptocurrency markets. It offers significant and sustainable profits to users. Steadefi achieves this by employing a combination of innovative strategies designed to optimize capital and profits.
One of the most remarkable aspects of Steadefi is its presence on the Arbitrum and Avalanche networks, two prominent platforms in the DeFi space. This dual-network compatibility enhances accessibility and liquidity, ensuring that users can seamlessly engage with the protocol and maximize their potential earnings.
To maintain a streamlined and efficient operation, Steadefi focuses on supporting two primary types of assets within its strategies: USDC and AVAX. This selectivity is a strategic choice, aimed at providing users with the most secure and reliable options for yield generation.
Steadefi’s unique approach also extends to the management of collateral. Users can participate by providing collateral to Steadefi’s vaults, which are structured within segregated lending pools. This segregation of lending pools helps manage risk effectively, as each pool is limited to its own specific vault type. This compartmentalization ensures that risk exposure is controlled and that any adverse events in one pool do not adversely affect the entire system.
Adding to its sophistication, Steadefi employs an automated risk management system managed by intelligent bots. These bots, referred to as managers, play a pivotal role in maintaining the health and security of each vault. They continuously monitor various parameters, including the debt ratio, to make informed decisions that safeguard user funds and optimize returns.
Highlights of Steadefi
Delta-Neutral Strategies
Steadefi’s delta-neutral strategy vaults have garnered attention for their effectiveness in managing market movements. These strategy vaults are meticulously tested to handle various market conditions by carefully balancing both long and short positions. This unique approach allows investors to focus on generating yields without being overly concerned about the price fluctuations of the underlying volatile assets.
Impermanent Loss (IL) Mitigation
Impermanent loss can be a significant concern for investors, especially those engaging in leveraged yield farming. Steadefi takes this issue seriously and provides robust countermeasures. In addition to autocompounding the yields from underlying protocols, their strategy vaults execute “rebalances” based on debt ratios and delta thresholds. These measures help minimize the impact of impermanent loss over time, providing investors with more stable returns.
Eliminating Liquidation Risks
Leveraged positions can lead to liquidation in the face of adverse market movements, resulting in substantial losses. Steadefi has introduced a novel approach by eliminating the need for liquidation. Their strategy vaults do not employ liquidation functions, ensuring that bad debt ratios are automatically prevented through intelligent rebalancing mechanisms.
Transparent Returns with Real APR & PnL
One common issue in the cryptocurrency market is the unpredictability of returns and misleading Annual Percentage Yields (APYs). To address this, Steadefi offers clear and honest data through APRs and Profit and Loss (PnL) tracking. Users can make informed decisions by using historical data and vault analytics to create and implement a well-informed market strategy.
Automated Position Management
Managing market-neutral positions and rebalancing them manually can be time-consuming and complex. Steadefi streamlines this process by automating everything. Users can deposit their assets and watch as yields are automatically compounded into their principal, offering a hassle-free investment experience.
Aligning Risk with Reward
Steadefi recognizes that different investors have varying risk tolerances. To cater to this diversity, they create isolated lending pools tailored to each user’s risk profile. Conservative lenders’ assets are utilized for low-risk vault leveraging, while more aggressive lenders’ assets are dedicated to higher-risk vault leveraging. This ensures that yield rewards align with the user’s risk threshold.
Profit-Sharing for Lenders
Unlike previous lending-borrowing protocols that relied heavily on utilization rates, Steadefi offers a unique benefit to lenders. In addition to competitive utilization rate interest returns, lenders also share in a percentage of yields from the borrowing strategy vaults. This guarantees returns even during low utilization periods.
Protection from Negative APRs for Borrowers
Negative Annual Percentage Rates (APRs) can erode borrowers’ positions over time, but Steadefi guarantees protection against this issue. Borrowers, in return for sharing a portion of their yields with lenders, will always pay a borrowing rate that is below their yielding APR, ensuring their positions remain sustainable.
Diverse Yield Sources
Steadefi stands out by building on a diverse set of underlying yield sources, including liquid staking, perpetual dex, and UniV2-style liquidity. This diversity ensures that both lenders and borrowers can find the best yield sources regardless of market conditions.
Comprehensive Backtesting
To provide users with reliable and profitable strategies, Steadefi conducts comprehensive backtesting on all strategy vaults under various market conditions. This commitment to testing and fine-tuning ensures that users can make informed investment decisions.
How does Steadefi work?
The platform’s innovative lending system allows users to earn up to 3x returns on their assets while participating in the DeFi ecosystem.
The three vault types available on Steadefi are AMM Swap, Perpetual Exchange, and Liquid Staking. Each of these vaults provides a unique opportunity for users to maximize their assets’ potential.
- AMM Swap Vault: This vault type allows users to engage in Automated Market Maker (AMM) swaps. Users can deposit their assets into the AMM Swap Vault and earn returns through the platform’s internal lending system.
- Perpetual Exchange Vault: Steadefi’s Perpetual Exchange Vault offers users the chance to participate in perpetual futures contracts, a popular financial instrument in the cryptocurrency space. By depositing their assets into this vault, users can access leveraged trading opportunities while earning attractive returns.
- Liquid Staking Vault: Liquid staking is gaining popularity in the DeFi sector, and Steadefi is at the forefront of this trend. In the Liquid Staking Vault, users can stake their assets and participate in network validation, all while enjoying the benefits of the platform’s lending system.
Lending Vaults
When users deposit assets into one of the vaults, they receive ibTokens that represent their deposits and track the amount deposited as well as any interest earned. The balance of ibTokens is proportional to the user’s stake in the lending pool and accrues interest with each block.
Each lending group on Steadefi has its unique ibToken. For instance, if a user decides to lend AVAX to the protocol, they will receive ibAVAX tokens that correspond to their deposit.
One of the notable aspects of this lending system is the dynamic exchange rate between ibTokens and the original tokens. Initially set at a 1:1 ratio, this rate will change as assets within the lending pool are borrowed. As the lending pool generates interest in the form of native tokens, the ibToken exchange rate will begin to increase. The rate is calculated based on the total amount of original tokens divided by the total amount of ibTokens.
Strategy Vaults
Steadefi introduced a cutting-edge strategy vault that allows users to automatically aggregate AVAX/ETH profits from transaction fees on GLP while predicting an increase in the price of GLP in the future.
This innovative approach leverages x3 leverage for capital, potentially tripling the profits of savvy investors. At the heart of this new offering are svTokens, which serve as “deposit receipts,” enabling users to participate in this lucrative venture.
Unlike traditional investment vehicles, where returns are solely based on yields earned, svTokens operate on a unique principle. They represent the total value of an individual’s vault position, a value that may fluctuate over time based on the performance of the strategy vault.
When a user opens a position in one of Steadefi’s strategy vaults, they are issued “strategy vault tokens.” These tokens are a digital representation of the user’s ownership share in the vault. Crucially, the value of svTokens is not solely determined by the yields generated by the vault. Instead, it closely mirrors the overall value of the underlying strategy vault, which can experience fluctuations.
The key benefit of this approach is the potential for significant profit generation. If a strategy vault generates profits, the value of the corresponding svToken will increase in tandem, allowing users to ride the wave of success. Conversely, if a strategy vault’s overall value declines, the value of its svToken will decrease, reflecting the performance of the underlying assets.
Steadefi’s tokens
SDY Token
Key Metrics
- Name: Steadefi token
- Symbol: SDY
- Chains: Arbitrum, Avalanche
- Max Supply: 200,000,000 SDY across all chains
Use Cases
SDY is the native token of Steadefi. It is 1:1 bridgeable to deployed chains, with Chainlink’s Crosschain Interoperability Protocol serving as the token bridge (CCIP). One SDY may be quickly turned into one esSDY.
Token Allocation
esSDY Token
Key Metrics
- Name: Escrowed Steadefi
- Symbol: esSDY
- Chains: Arbitrum, Avalanche
Use Cases
The non-transferable “escrowed” SDY token is known as esSDY. It may be acquired by instantaneously converting SDY to esSDY at a 1:1 ratio or provided as a reward for providing liquidity through Steadefi’s Farms.
The option to deploy esSDY toward a portion of platform dividends or toward increasing the user’s yield rates is the currency’s main benefit. Later on, esSDY will be used for platform governance and access to a number of special product features.
Steadefi’s Team
Steadefi’s team is data-driven and skilled, with a varied group of software engineers and DeFi experts dispersed around Hong Kong, Indonesia, Japan, and Singapore. This indicates that they naturally create different yield goods and tactics.
Conclusion of Steadefi Review
Steadefi can provide customers with a broad range of options based on its market prospects, all the while ensuring the strategies are affordable for everyone, from delta-neutral leveraged yield farming to permanent DEX liquidity vaults. So, through this Steadefi Review article, we have more useful information about it, and hopefully you can have more choices to invest.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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