The integration between Stella and Trader Joe marks a significant milestone for Stella, as it represents their first expansion outside of Uniswap V3. This integration will provide an exciting opportunity for leveraged strategies on top of Trader Joe. As pioneers in the field of ‘Leveraged DeFi,’ we are thrilled to be the first customizable leveraged strategies protocol building on Trader Joe’s Liquidity Book. This collaboration will create a whole new dimension for both existing users and JOE token holders to maximize capital efficiency and earn higher trading fees by leveraging the Liquidity Book.
Stella and Trader Joe Integration on Arbitrum
With the innovative mechanisms of Trader Joe’s Liquidity Book, leveragers will enjoy enhanced flexibility to customize their leveraged strategies, introducing a new protocol for leveraging opportunities. We invite you to join us in exploring what Stella brings to the table with this integration and how Leveragers can effectively utilize the Liquidity Book to deploy new and powerful leveraged strategies. This partnership promises to revolutionize the DeFi landscape and unlock immense potential for users seeking to optimize their trading experiences.
What’s Available At Launch
At launch, leveragoors can expect 3 new pools to open leveraged strategies with and 1 new lending pool:
New Leveraged Strategies:
- ETH/USDC.e 0.15%
- ARB/ETH 0.2%
- JOE/ETH 0.2%
New Lending Pool:
- JOE
Welcome aboard! If you’re new to Liquidity Book, we recommend taking a moment to acquaint yourself with the functionalities of each Liquidity Shape before diving into leveraging.
For a comprehensive understanding of Spot and Curve Liquidity Shapes on Trader Jo.
Take the time to explore these valuable resources, and you’ll be well-prepared to make the most of your leveraged strategies with the Liquidity Book. Happy leveraging!
1. Select Liquidity Shape: Spot or Curve
Spot Shape: Opt for this option, and you’ll be providing an equal amount of liquidity in each bin. This balanced approach ensures your liquidity is spread evenly across the entire range.
Curve Shape: Selecting this shape means you’ll provide the highest amount of liquidity at the current spot price, with the amount gradually decreasing as you move away from the spot price. This strategic curve allows for a more targeted approach to liquidity provision.
2. Select Price Range: Wide, Medium, Narrow
In order to simplify the process of selecting a price range, leveragers will now have the option to choose from predetermined ranges: Wide, Medium, or Narrow Range. This functionality operates similarly to leveraging on Uniswap V3, streamlining the decision-making process.
By selecting one of these Price Range options on Trader Joe‘s Liquidity Book, the upper and lower price range, as well as the number of bins, will be automatically calculated based on the chosen range. Stella has ingeniously devised a method to utilize the Price Range and Bin Step from the Pool, enabling seamless computation of the Number of Bins for users.
3. Supply & Borrow
The rest will work the same as before. Users can either choose:
- Borrow By Leverage: This helps leveragoors achieve neutral exposure of assets
- Borrow By Amount: This allows leveragoors to customize their desired strategy.
About Stella
Prior to becoming Stella, the core development team operated as Alpha Finance Lab and Alpha Venture DAO, establishing themselves as pioneers in the field of ‘leveraged DeFi’ since 2020. Their groundbreaking contributions to the DeFi ecosystem include the creation of Alpha Homora, which reached a peak Total Value Locked (TVL) of $1.9 billion. This protocol is widely recognized as the first-ever leveraged yield farming platform, revolutionizing the DeFi landscape.
Furthermore, the team played a pivotal role in introducing essential concepts such as tokenization and collateralization of LP (Liquidity Provider) tokens, which have since become fundamental building blocks in the DeFi space.
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