- Velar and StackingDAO introduce the first STX/stSTX stableswap pair.
- The dual rewards scheme provides substantial benefits for liquidity suppliers.
Velar, the pioneer of Bitcoin-based liquidity protocol, has partnered with StackingDAO to launch the first-ever stableswap trading pair, stSTX/STX, on Stacks. This partnership fills in one of the most serious gaps in the Stacks liquidity ecosystem by providing extreme ultra-low slippage and minimal fees, as well as attractive rewards for liquidity providers.
The STX/stSTX stableswap will utilize the latest innovative stableswap curve. It allows fast swaps from STX to stSTX and vice versa with zero slippage, thus making staking much more attractive for investors through the reduction of friction in staking and unstaking.
The stableswap also provides a dual rewards mechanism to attract liquidity providers. LPs can earn 5,000 VELAR in daily rewards and an increase of 50% in StackingDAO points. With these rewards coupled with the possibility of an airdrop and others, it is an extremely attractive opportunity for participants. The improved liquidity also supports the needs of institutional investors who require swaps on a large scale. That puts Stacks in an advantageous position as a leading Bitcoin-based DeFi ecosystem.
Driving Synergies for Bitcoin DeFi
Velar and StackingDAO have implemented innovative features mitigating the risks associated with impermanent loss, an almost common problem in DeFi. The variable midpoint upgradeable solution by protocol has additional LP protection when farming programs are provided through Velar.
The collaboration between Velar and StackingDAO marks one of the biggest strides forward for the Stacks ecosystem. As Velar continues to innovate using its Dharma automated market maker, it is playing a significant part in unlocking $2 trillion in dormant Bitcoin capital.
CMO at Velar, Peter Watson, commenting on the effects of the partnership said that The first stableswap with a variable midpoint will be a new benchmark for the future for both liquidity and security in Bitcoin DeFi.
Philip de Smedt of StackingDAO voices his opinion about this, saying, This collaboration will present unmatched liquidity efficiency with great innovative features hence bringing a major milestone in the history of Stacks.
Velar and StackingDAO are leading by giving the Bitcoin-based DeFi innovation enhanced security and highly efficient trading with rich rewards.
