Velar Partners with StackingDAO for First STX/stSTX Stableswap

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As a seasoned researcher with a keen eye for innovation and a soft spot for decentralized finance, I find this collaboration between Velar and StackingDAO truly fascinating. Having closely followed the growth of Bitcoin-based liquidity protocols and their impact on DeFi markets, I am particularly intrigued by this groundbreaking partnership.

In partnership with StackingDAO, Velar, a top Bitcoin-based liquidity platform, is launching the world’s inaugural STX/stSTX stableswap trading pair on the Stacks network. This collaboration aims to revolutionize liquidity management within the Stacks ecosystem by providing an intuitive, cost-effective, and high-performance solution for exchanging STX and stSTX tokens.

Through its key function in maximizing Bitcoin’s hidden capabilities, Velar continually focuses on transferring Bitcoin’s liquidity into the realm of decentralized finance markets. Working together with StackingDAO, these projects aim to bridge a significant gap within the Stacks ecosystem. This collaboration introduces a distinctive stableswap trading pair specifically for STX and stSTX tokens on Velar’s decentralized exchange (DEX).

Peter Watson, Chief Marketing Officer of Velar, emphasized the company’s commitment to innovation. He said the collaboration with StackingDAO marks a milestone in developing the first-ever stableswap pool featuring an upgradeable variable midpoint.

At Velar, we’re pioneering innovation by creating a unique stable swap pool, which includes an upgradable variable midpoint,” said Peter Watson. “This groundbreaking development demonstrates advanced technologies for the Stacks ecosystem. Working with StackingDAO has been an exceptional experience, and we’re proud to be setting new standards in Bitcoin DeFi.

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As an analyst, I’d rephrase the statement to:

The introduction of the new pool simplifies the process for STX and stSTX token holders to get in and out of their staking commitments, thereby smoothing transactions and potentially making Stacking a more attractive proposition for users. This streamlined process is anticipated to minimize transactional difficulties, which is beneficial for those already accustomed to the Decentralized Finance (DeFi) terrain as they delve deeper into this ecosystem, enjoying improved functionality in the process.

The stable swap pool will make it simple for large-scale transactions to occur quickly and with minimal price discrepancies, which is essential for institutions that require high liquidity and swiftness in their trades. Moreover, this collaboration is expected to bolster the Stacks ecosystem by encouraging cooperation between two of its key players: Velar, the dominant DEX on Stacks, and StackingDAO, the leading organization for staking liquidity.

Beyond what’s already mentioned, Velar’s stableswap pool comes with an exceptional characteristic that mitigates the problem of impermanent loss, which is often experienced by liquidity providers in conventional pools. Unlike most liquidity pools that expose providers to the risk of value loss due to price changes, Velar’s adjustable midpoint product helps minimize this risk, providing a safer and more lucrative farming experience for StackingDAO users.

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Philip de Smedt, Co-founder of StackingDAO, highlighted the significance of the partnership. He emphasized the stSTX/STX stableswap launch on Velar DEX as a major advancement for the Stacks ecosystem. 

According to Smedt, the integration of the stSTX/STX stable swap on Velar DEX represents a substantial advancement for the Stacks ecosystem. This collaboration provides unprecedented liquidity optimization, minimal slippage, and a groundbreaking variable midpoint feature aimed at reducing impermanent loss.

This alliance goes beyond improving liquidity; it’s about speeding up the process to unleash approximately $2 trillion worth of dormant capital trapped within the Bitcoin system. Velar’s liquidity system is leading the charge in Bitcoin’s decentralized finance (DeFi) development, and this collaboration with StackingDAO marks a significant stride towards establishing the necessary infrastructure for a fresh wave of Bitcoin-centric DeFi projects.

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2024-11-26 19:09