/biz/ - Business & Finance

Can anyone explain to me who loses money because of the burn function? If I buy Statera at 0.06c and pool it for a 50% APY and exit the pool 1 year later when the price is 0.06c with 50% more value (50% more tokens?) who paid for that? who lost money so I could gain 50%?

you balance it with statera of course

thanks to the 900iq staggot that wrote this, i am merely a 300iq hodler
1/2
market cap = supply x price

As an example for 5,000 supply at $2: $10,000 = 5,000 * $2

Whenever STA is traded between wallets, 1% gets burnt. Now let’s assume two things:

1- Volume of 50,000 STA gets traded, causing 500 STA to get burnt reducing the supply to 4,500

2- Ignore the demand/price force for STA’s utility (for now)

Since we are ignoring demand, the market cap will remain the same. This burn will therefore cause price to increase:

10,000 = 4,500 x p, which means price should theoretically be pushed to 2.22.

This price increase will cause the STA value in Balancer (or Phoenix) to increase, forcing the pool to rebalance. Rebalancing means selling STA and buying the other 4 coins to keep the percentages as initially agreed upon (50 ETH / 20 STA / 10 BTC / 10 SNX / 10 LINK). Now remember, selling STA will cause STA to be burnt again (supply decreasing), causing a ripple effect: the cycle will keep repeating itself at a decreasing rate, even if no further human-triggered trades happen.

>Telegrams
t.me/stateratoken (Official)
t.me/stateraunofficialpricegroup (Price chat)


>Uniswap info
https://uniswap.info/token/0xa7de087329bfcda5639247f96140f9dabe3deed1

>Trade on Uniswap
https://app.uniswap.org/#/swap?outputCurrency=0xa7de087329bfcda5639247f96140f9dabe3deed1


>Charts
https://uniswap.vision/?ticker=UniswapV2:STAUSDC&interval=1D

https://stateratoken.com/

>whitepaper/pooling tl;dr
https://i.imgur.com/yARc97c.png
https://i.imgur.com/nBdYG6y.png

>buying statera for brainlets
https://i.imgur.com/mv2PqLm.png

>Telegrams
t.me/stateratoken (Official)
t.me/stateraunofficialpricegroup (Price chat)


>Uniswap info
https://uniswap.info/token/0xa7de087329bfcda5639247f96140f9dabe3deed1

>Trade on Uniswap
https://app.uniswap.org/#/swap?

outputCurrency=0xa7de087329bfcda5639247f96140f9dabe3deed1


>Charts
https://uniswap.vision/?ticker=UniswapV2:STAUSDC&interval=1D

https://stateratoken.com/

>whitepaper/pooling tl;dr
https://i.imgur.com/yARc97c.png
https://i.imgur.com/nBdYG6y.png

>buying statera
https://i.imgur.com/mv2PqLm.png

>>23145194
im almost there.. im ... im gonna MOOOOOOOOOOOOON