The Launch of the stSTX Pool on Velar

The stSTX-STX pool is now live on Velar!

This new pool expands the collaboration from the stSTX-aeUSDC pool and brings an exciting opportunity for users to earn yield and additional rewards by depositing stSTX and STX.

How the stSTX-STX Pool Works

The stSTX-STX pool allows users to deposit stSTX and STX into the pool to earn yield from swaps. Beyond just regular yield, there are two significant incentives for participants:

1. 50% Boost on Stacking DAO Points: Users can boost their Stacking DAO points by 50% on their entire LP position.
2. 5k $VELAR Daily Bonus: The pool receives a daily 5k $VELAR farming reward, adding even more earning potential for liquidity providers
3. Additional VELAR Rewards: More VELAR will be allocated if the pool ranks in the top 3 by staked value

You can get started by visiting Velar and select the stSTX-STX Pool here.

Why is stSTX Integration on Velar Important?

Velar has quickly emerged as a leader in the Stacks DeFi ecosystem, and the integration of stSTX only strengthens its position.

Over the last 30 days, Velar has outperformed many other DeFi platforms, ranking highly in key metrics such as active users and high transaction count in the DeFi space, highlighting its popularity and engagement.

By integrating stSTX, Velar introduces new yield opportunities for holders, while also encouraging more swap activity.

On top of that, they have implemented a variable midpoint which will enable to always have 50/50 stSTX-STX in the pool, making it more efficient and balanced.

Other DEXs following the Uniswap V2 standard use a fixed midpoint for stable swaps that remains unchanged over time. In contrast, a variable midpoint allows continuous updates based on the token ratio in the pool, unlocking the full liquidity range.

Basically, without the midpoint variable, the pool becomes unbalanced because it doesn’t factor in that stSTX accumulates more STX as time passes. This means the value of stSTX grows over time, but the pool doesn't adjust for this increase, causing an imbalance in the ratio between stSTX and STX.

Conclusion

The launch of the stSTX-STX pool on Velar is a strategic move that benefits both stSTX holders and the wider DeFi ecosystem. By offering boosted rewards and introducing new yield farming opportunities, this partnership solidifies Velar's growing presence in DeFi while adding value to Stacking DAO.

Don’t miss out on this opportunity—deposit your stSTX in the pool today and start earning!

Stacking DAO Details:

Mint stSTX today and earn up to 10% yield on your STX: https://app.stackingdao.com/

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