The Stabilize Protocol is a decentralized finance application designed to help keep stablecoins, ETH and BTC proxy tokens’ prices stable by using active strategies that arbitrage over multiple exchanges. Users earn from price fluctuations between tokens, whether the market is in bull or in bear. Currently, the protocol can be utilized on both Ethereum and Binance smart chain networks.
Soon the Ethereum version will be migrated to Arbitrum One, a layer 2 solution for Ethereum that benefits from faster speeds and lower costs than the main chain. Learn more here.
The migration process will begin on September 23rd and run for 2 weeks. A new page will be opened on the site to lock your STBZ when migration begins.
What do you need to do?
In order to migrate, STBZ token holders will need to lock their tokens into a new migration contract on Ethereum. They must do this before the end of the migration period as the Ethereum-based STBZ token will be deprecated and replaced by an Arbitrum version. Arbitrum-based STBZ tokens will be claimable by those who locked their tokens before the end of the migration period at a ratio of 1:3. Meaning, you will receive 1 Arbitrum-based STBZ token for every 3 Ethereum-based STBZ, ie: 180 Eth STBZ => 60 Arb STBZ.
The locked STBZ will eventually be burned by governance into the TreasuryFurnace contract whose funds will be used to supply initial SushiSwap ETH/STBZ liquidity on Arbitrum.
Make sure to pull liquidity from UniswapV2 and pull STBZ out of the staking contract before the end of migration. After migration ends, the site will transition to Arbitrum so it is important that depositors pull funds from all the strategies except for REETH and prepare for the new ones on Arbitrum.
REETH and Stabilize Swaps will continue to exist only on the Ethereum network for now. There is nothing you need to do if you hold REETH.
What will be different on Arbitrum?
For user experience, it features mainly quicker transactions (a few seconds) and much lower fees (< $5 USD) than on layer 1.
Because of the way the Stabilize protocol requires a constant stream of transactions to generate profit, lower gas fees means more trade opportunities for the protocol and its bot network.
In addition, the tokenomics of the Stabilize token (STBZ) will be significantly different to better incorporate popular requests in our community, such as with the introduction of token buybacks and vesting periods.
The governance token, STBZ, after migration will have its supply reduced to about 300,000 tokens due to the 3:1 ratio conversion during migration.
During the first few weeks of farming, emissions of STBZ tokens will be boosted, starting at 5% of supply the first week, 4% the second week, 3% the third week, 2% the fourth week, 1% the fifth week. After the fifth week, the token emission target will switch to an initial 1% per year for perpetuity. The development team will receive 10% of weekly tokens for incentive.
What will make Stabilize unique in this space is that emissions for the pools will come from both newly minted tokens and an all new STBZ Buyback Bank. Part of the profit generated from the strategies will be used to buy STBZ and store it in the Buyback Bank. If the weekly emission target is less than the amount of tokens held inside the buyback bank, no new tokens will be minted and emissions will come solely from bought back tokens.
The expected outcome for a successful protocol is that there will be no minting required as tokens will be distributed from the Buyback Bank and the total supply will reach equilibrium.
Additionally, all depositors who farm on Stabilize to earn STBZ will be subject to a 3 month STBZ vesting period. Only rewards are subject to vesting. The initial deposit is completely untouched. The vesting starts at the moment of the first deposit at 100% and decreases linearly to 0% at 3 months. STBZ claimed before the end of the vesting period is subject to slashing and is sent to the Buyback Bank to be distributed to other users at weekly emissions. This method of vesting helps reduce the initial price volatility that occurs when farming opens.
For every new deposit into the pool, the vesting period is not reset, but rather updated based on the amount of new funds deposited compared to what is currently deposited. For example, if Alice deposits 1000 USDC and is near the end of her vest, and decides to deposit another 1000 USDC, her time doesn’t reset but it becomes somewhere in the middle of the vesting period.
Join our community to learn more about Stabilize
Visit the website to get started using the Stabilize protocol, follow us on Twitter and join the community on Telegram.