Building The Long Term Value of STN For The Community — Current Thoughts Looking For Community Feedback
STONE was initiated when a group of us feels there’s a lack of yield aggregation platform focused on creating Rock Solid Yield for all the users in the DeFi space, so we can all sleep better at night. In addition, DEFI and yield farming should be fun and be based on a fantastic collaborative culture within the community. We are actively looking for community contributors to build up our culture, debate on farming strategies, scout for upcoming farms, and come up with new strategies.
To recap how STONE would like to create long term value of STN for the community, a few medium posts can be referred to:
Defi is nascent and a fast-changing environment. STONE is working hard to provide more secure and stable progress while experimenting new ideas in the space.
With the recent launch of the alpha product and STN listing, we have gained a lot of learning from the community. We appreciate all the feedback and the kind understanding from the community!
And of course, we always want to establish transparent communication with the community and bring the best consensus. Therefore in this post, we would like to address some crucial topics discussed by the community. And please share your thoughts too!
Recap regarding the high gas fee for USDT vault withdrawal 31 Mar 2020:
USDT vault of Stone has been deployed to dForce to generate interest rates for users. This is standard practice for yield farming of single assets (same for harvest or YFI).
dForce uncovered the recent market opportunities — the previous USDT deposited in AAVE has been all borrowed and resulting in a 68% of loan interest APY while the deposit interest is also pushed up to 11.76% APY. Given that the borrowing interest is far exceeding the normal level of the market, this would greatly accelerate repayments and adjust interest and liquidity back to previous market conditions.
However, for Stone vaults, due to the lack of liquidity resulted from the situation above, our users have been suffering from high gas costs, Stone has immediately reached out to dForce team around 11 pm on 31 Mar and formed a communication chat with dForce team to address these issues.
We have been collaborating with dForce to monitor the live updates of the liquidity situation from the market since 1st April:
- We have been gradually getting liquidity back to STONE on 1st April 2021, and with the support of dForce team, we have finally accumulated enough liquidity back from the underlying lending protocol;
- At 1.30 am 2nd April, and then dForce has gradually accumulated liquidity from the lending protocol
- At 8.20 am 2nd April, STONE has fully called back liquidity back to our USDT vault
In summary, we greatly appreciate the collaboration with dForce to promptly form up a team together to address all these issues and also greatly appreciate the community members being patient with Stone. Thank you very much again!
Regarding alpha mining rewards distribution and bringing long term value of STN to the community
We launched alpha test mining for the community to try out the first version of STONE products. The purpose is to improve user experience and product security as we believe these two factors are lacking in the defi space. We believe by focusing on user experience and product security, we will bring the long-term value of STN to our community.
In addition, the team is working on STN staking and STN/ETH liquidity farming functions in the beta product. These functions will be able to reward STN holders for their contribution to liquidity provision on DEX.
Taking a long-term builder’s view, STONE is the most active builder for liquid staking assets and cross-chain yield farming. STONE is building liquid staking assets products and also leveraging web 3.0 technology to create cross-chain yield farming. Liquid staking assets and cross-chain yield farming are the most fast-growing sectors in the blockchain space. The value of STONE protocol will grow along with them.
We understand that the community is super excited about STN and the future of STONE. While the team wants to provide as much clarity in the alpha mining reward distribution as possible, the team is also considering how to reward the community timely and fairly without creating too much supply of STN in the market as this may hurt current STN holders.
- Alpha mining rewards will be calculated retrospectively based on per block and the percentage of users’ total-value-locked (“TVL”) within each block. A similar approach for our future farming rewards will be implemented.
- The total amount of alpha mining rewards shall be a token of appreciation of early supporters and cover some additional high gas fee during the period.
- Shall we distribute the rewards at the earliest possible timing or we shall let the price discovery of STN be more mature before distribution? There will be hodlers and sellers for sure, and that is normal. We would like to seek a balance not to create panic in the market and let the market fairly discover the value of STN.
We would like to create this thread and let the community express their opinions. Together, we will make STONE strong and long-lasting!