/biz/ - Business & Finance

>>21992844
Checked
>>21992929
2929 checked and based

What is an index fund?

An index fund is a fund that can track a specified basket of underlying investments and in this case: BTC, ETH, LINK all balanced with STA.

The rules are that these coins are set in the fund at a specified percent so as one goes up or down the others are automatically bought or sold to balance risk and maximize profit. HOWEVER, the key is that STA is deflationary (whenever an STA transaction happens for buying/selling/pooling, 1% of the transaction of STA is burned). This token burn + tokens being locked in pooling pressures prices up to again make sure the other coins will be balanced. You also are given a % of all the fees paid in STA transactions up to 36% APY and during a run up to 40,000% APY.

The power of STA is that the ripple effect of: (1) compounded fees, (2) token burn, (3) price pulled up by ETH, BTC, and LINK leads to an exponential effect and positive feedback loop on price.

Can the team dump? No, this is the most decentralized token as the project much like BTC is out of Satoshi's hands, STA is out of the hands of the devs who only own <4%.

In short, Statera:

1. Increases positive price pressure and decreases volatility - caused by the deflation
2. Gives one token access to the ecosystem, price action of assets its pegged to, and benefits of arbitrage
3. Deflation can be put into any index fund (Balancer pool) or other financial instrument
4. Deflation rewards loyalty, if you get in early when supply is high, as supply goes down assets get more valuable
5. Diversification - You can hold many assets in the ecosystem
6. Passive income- make money while you hold your crypto (over 30% APY)

TL:DR

In simple terms the Burn function of STA is designed to create volume. In a way Statera discovered "Volume Farming".

>>21973260
...you keep using the word ponzi or scam but you do not understand why it does not apply here.

You see, I would prefer it if no one bought STA. I would prefer balancing funds with this code myself and collect all the fees from the pool as I pin it to existing smart contracts.

If an asset or contract has low volume then it is susceptible to high volatility. This leads to the premature failure of many promising projects and contracts early in development and is one of the main barriers to a fully decentralized and digital world. A simple quant balancer cannot solve this as in finance 1.0 because if the volatilty is too high then such a balancer is subject to fail also. However the addition of a literal meme like deflation and token burn creates an inherent feedback to this system ensuring that it cannot fail unless the entire digital market collapses. It allows new projects and new contracts to solve the initial growing pains of high volatilty and manipulation.

But what if bad actors simply manipulate STA? This is why the fully decentralized aspect is important.

But what if no one uses it? Then it fails. However some possible reasons to support why it will be used include: FMA and that people are already using it. If BAL and subsequently Phoenix go on cb then it will not be long until STA is cemented as the industry standard. However, this is the key. If we do not utilize this tool then it will fail. This does not mean we need more people buying it. But more people using it and allowing it to be integrated into their pools, funds, contracts, etc.

If more projects integrate it then IDGAF if I am the only holder. I will be a trillionaire.

>>21973121
>it's a ponzi
No, it's an index fund balancer. It isn't meant to provide guaranteed monster returns, but rather consistent reliable returns. A ponzi would require new money to pay the people that got in early. I could literally be the only person in the pool and i would still make money.

>Devs will exit scam
They only own a small percentage and it has been audited.

>PnD is over
STA has pumped multiple times and is still young, retaining stable value.

>deflationary coins are a meme
The deflation is just a mechanism to facilitate balancing of any index affiliated with the STA ecosystem. It isn't the primary draw.

Do you have faith in crypto? Then buy STA. Do you not have faith in crypto? Then GTFO this board and go back to waging.

>>21967470
Pool half during local tops.