As crypto is widely known for its volatility and massive swings, it is not a place for the faint of heart. Those who keep building are likely to be the eventual winners. While many may end it after a major crypto market crash, Jeff remains doomed in space, as “what is not dead will grow stronger and stronger.”
By building DeFi strategy vaults that generate real and sustainable returns for investors, Steadefi’s CEO has remained resilient to create new products that help improve the larger crypto space.
A team of engineers
With a diverse team of software developers and DeFi veterans based in Hong Kong, Indonesia, Japan and Singapore, Steadefi’s team is data-driven and experienced. This means that building different return products and strategies is a matter of course for them.
And this natural sense of DeFi is easily seen in their sophisticated products and accessible UX. From delta-neutral leveraged yield farming to perpetual Dex liquidity vaults, they are able to offer their users a wide range of options based on their market views while ensuring the strategies are accessible to the masses.
Where does the income come from?
Here is an example from their 3x Long GLP GMX strategy vault.
With 3x leverage on deposits, this strategy generates increased returns from GLP staking on the GMX derivatives protocol. Earnings come from minting/burning, swaps, liquidation and margin trading fees, and they are automatically compounded back into more GLP.
Also, Jeff added that she “I want to focus on generating returns from assets with high liquidity and market capitalization that exhibit relatively lower volatility across the market as a whole.” This demonstrates the team’s commitment to delivering optimized yields while maintaining a focus on managing user risk.
When it comes to capital efficiency, they achieve this by introducing undercollateralised lending. Essentially, putting a dollar in the vault of 3x leverage returns borrows $2 to reach a $3 position. This $3 is used to mint $GLP, which are also auto-staked, while Vault Keeper bots in the backend auto-composite AVAX yield into more GLP and rebalance as needed.
Rebalance: a “reset” of the vault’s assets so that the debt ratio remains in a healthy range and the delta exposure is in line with the intended strategy. At GLP there are only adjustments to the debt ratio with a target value of 66%.
While Avalanche was the first network of choice, the recently popular Arbitrum network was chosen as the second. The Steadefi team is constantly exploring new ideas for future revenue streams across different networks. With Arbitrium firmly under control, they’re already in the works for bigger things.
“We will continue to be multi-chain in the future. We already have the framework for that.” added Jeff.
But with leverage comes risk management responsibility and Steadefi safes do it all for the user.
Steadefi’s audit by Omniscia has now been successfully completed. This means that security audits have ensured that the project is up to the latest standards and critical vulnerabilities are fixed.
Steadefi’s upcoming plans
While the market continues to give no clear signal as to which direction it wants to go, builders in the space will continue to build. The Steadefi team will continually develop new products, including the launch of new strategy vaults that users can leverage to generate revenue and exciting strategic partnerships in the near future.
1. 3x Long Curve Tri-Crypto Vault
By using 3x leverage on deposits, this strategy generates higher returns from tricrypto staking on the Curve Finance protocol. Returns come from swaps and CRV inflation reward issuance as elected by veCRV holders.
Essentially, this vault works best when (1) BTC and ETH continue their uptrend, (2) veCRV voters continue to incentivize the tri-crypto pool of wBTC, wETH, and USDC, and finally (3) act as a short-term hedge market down.
Of course, users must understand the downsides of a de-pegging incident occurring on any of the packaged assets and significant swings in crypto with its volatile nature.
2. Liquid Staking Strategy Vault
Building on the history of LSD products, Steadefi will also be venturing into liquid staking products as part of one of the new strategy vaults. Here, the vault will essentially borrow ETH from Steadefi’s loan pool to form a triple leveraged stETH-ETH LP.
3. $STEADY/esSTEADY Tokenomics
The second big plan Steadefi plans to launch this year is their own native token, $STEADY.
Now this token will be used as part of Steadefi’s liquidity reduction incentives and can be bypassed using LayerZero’s fungible omnichain token messaging protocol. The maximum supply of $STEADY tokens will be capped at 200M across the two supported chains, Avalanche and Arbitrum.
Considering the escrow model, each 1 $STEADY = 1 $esSTEADY.
The escrowed version of the $STEADY token can be earned from revenue-generating staking positions or through direct $STEADY conversions. The main purpose of esSTEADY is to allocate a share of the platform dividends or increase user returns.
It is also good to note that the esSTEADY token is used on the platform for governance.
Although profitable (for some), token launches can be stressful.
And we don’t like stress.
So how about we give you a way to earn our $Steady token before launch?
Introducing the $esSteady Liquidity Mining phase, briefly introduced below 👇#Avalanche #Arbitrum
1/3 🧵 pic.twitter.com/WNMaNqmUI1
— Steadefi 🔺💙🔶 (@steadefi) March 30, 2023
4. ETH-USDC Strategy Vaults on Camelot
Finally, there are two types of ETH/USDC strategy vaults that users can use that work similarly to the existing AMM swap vaults that they currently have on Avalanche; Long and neutral.
The long vault will essentially involve earning swap fees and Grail/xGrailas, a source of income from an ETH-USDC swap pool on Camelot. Users can deposit ETH, and the vault then borrows the two specified assets, ETH and USDC, so the total value of the assets is 3x the original deposited value.
The vault will automatically compound swap fees and put Grail back into position while using xGrail to boost returns. Those looking to accumulate more ETH could use this strategy vault to take advantage of the $ETH uptrend.
The neutral vault, on the other hand, is intended for users who are only interested in earning returns on their position without worrying about the price of ETH. Using 3x leverage on deposits, this strategy yields an increased return from $ETH-$USDC swap fees and the auto-compounded Camelot rewards. This vault performs best in a crab or downtrend market.
Chainlink BUILD program
The Chainlink BUILD program aims to accelerate the growth of early stage and established projects within the Chainlink ecosystem. Ultimately, it is a platform that helps foster accelerated growth in existing Chainlink ecosystem projects.
As one of the current 25 projects in the BUILD program, Steadefi can draw on Chainlink’s world-class services, expertise, and community to bring its DeFi strategy to the masses.
As part of BUILD, Steadefi now receives expanded access to industry-leading Chainlink Web3 services, technical expertise and community support from the Chainlink ecosystem.
By donating 3% of their total token supply to Chainlink service providers as part of Chainlink Economics 2.0, the Steadefi team can further accelerate the rollout of their automated smart hedging strategies.
“We are excited to join Chainlink BUILD, which we believe will significantly help drive the adoption of Steadefi’s next-generation automated DeFi strategy vaults. Chainlink’s Web3 services are essential for any protocol that values security and reliability. We plan to use the full suite of services that Chainlink can offer, such as Chainlink Data Feeds and Chainlink Automation, to support our strategy vaults. Ultimately, joining BUILD will help us bring Steadefi’s innovative, efficient and safe strategies to more people.”
Jeff Lam, Project Manager
[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]
Credit for select images: Chain Review
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