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 across multiple exchanges. Users earn from price fluctuations between tokens.
In the near future, the Stabilize development team will be deploying a unique ecosystem for users on the Binance Smart Chain (BSC), a blockchain similar to Ethereum in how it interfaces with users.
Why is this significant?
Up until recently, users across the financial spectrum could participate in decentralized finance by depositing and withdrawing in lending protocols, yield farms and other financial tools on the Ethereum blockchain. As Ethereum began to become more and more congested, these types of activities began to become exceedingly more expensive as users had to pay higher prices to include their transactions into the block. This ongoing congestion presents a difficult scenario for developers who want DeFi tools to do more, while knowing that it may cost users more fees to participate and price out small holders.
BSC is a nascent blockchain that doesn’t yet have the congestion that Ethereum has thus leading to significantly cheaper fees for users. This gives platform developers the chance to do more without having to suffer from the high fees. In addition, BSC has shown to contain a vast amount of liquidity on its chain, making it an ideal candidate for DeFi applications.
Stabilize BSC will aim to become a leading platform for stabilizing stablecoins on Binance Smart Chain once launched.
Stabilize BSC will not be a clone of Stabilize
As there will be no bridge between ETH based Stabilize token (STBZ) and BSC based Stabilize tokens (STBB), the tokenomics of Stabilize BSC will be significantly different than its ETH counterpart.
There will be a cap of 10 million STBB tokens that will have a linear decay emission model over a 10 year period. The team will be allocated 10% of the supply on a weekly basis over that period.
Users can stake their STBB tokens directly into a strategy of their choosing to earn a percentage of that strategy’s profit. Strategies (excluding new strategies) that have more STBB staked also earn a higher rate of emission in the yield farming contract.
Similar to ETH based Stabilize, executors will earn a part of profit from executing trades at the most profitable times and have some their gas fees reimbursed.
As Stabilize BSC will implement a new token, STBB, the Stabilize team will airdrop STBB tokens 1:1 to users who hold at least 100 STBZ tokens to their equivalent Binance Smart Chain wallet using a merkle tree claimer (similar to Stabinol). There will be unspecified anti-whale measures in place during this airdrop.
The snapshot for the airdrop will take place in the near future, but no sooner than a week from this posting. Unlike in the Stabinol snapshot, unclaimed STBZ will count towards the snapshot and staked STBZ in Stabinol will also count. This means there is no need to claim STBZ before the snapshot is taken. In addition, users that have staked STOL LP tokens that contain at least 200 STOL will be eligible to have their airdrop boosted up to 30%. For each STOL staked in STOL LP, each corresponding STBZ will be boosted by 30% to 1.3 STBB / STBZ.
For example, if I hold 200 STBZ in the Stabilize staking pool, 50 STBZ in the Stabilize LP and 50 STBZ staked in Stabinol, I will receive 300 STBB tokens in total. If I additionally hold 199 STOL in staked Stabinol LP, I will receive again only 300 STBB. If I instead hold 210 STOL in staked LP, 210 of my 300 STBZ will be boosted 30% and I will receive 363 STBB tokens in total.
Join our community to learn more
Visit the website to get started using the Stabilize protocol, follow us on Twitter and join the community on Telegram and Discord. The snapshot results will be posted to Twitter after it is taken.