The Stabilize Protocol will add new high interest earning pools that use active strategies to earn more yield for depositors. Our first new pool, UNI USDT/ETH LP, will incorporate Pickle.Finance so our depositors can earn interest, PICKLE and ETH all in one transaction.
The new pool will be a little different from our current pools. Currently, when depositors wrap their stablecoins, they automatically earn interest via the Aave lending protocol as a source of liquidity for borrowers. The new pool will instead provide liquidity directly into Pickle and earn its high interest (sometimes 10x that of Aave) plus its accessory token and ether. There will be no withdrawal fees for using the new pool.
This pool uses active strategies, meaning governance can switch to another alpha earning strategy automatically with sufficient time-lock warning.
How to enter:
To enter our first active strategy pool, you must first acquire Uniswap USDT/ETH LP tokens then wrap them into zs-ETHUSDT tokens on our wrapper page. These zs-ETHUSDT tokens will earn the stated APY in value. In addition, depending on how long you hold your zs-ETHUSDT, you will also earn PICKLE and ETH when you unwrap your token back into normal LP tokens.
Unlike other protocols that just farm and liquidate the underlying protocol’s tokens (PICKLE in this case), Stabilize gives users a choice whether they want to hold onto those tokens generated. This helps keep that protocol’s token value from dropping and supports the continued health of the protocol we are utilizing. In addition, by not selling immediately after acquiring, we limit the effect of front running bots and can participate in the Pickle staking process.
How does the strategy work?
Using the Uniswap LP tokens deposited, the strategy earns interest on those LP tokens by depositing tokens into Pickle protocol and earning PICKLE tokens via Pickle’s farms. It then stakes those PICKLE tokens to earn WETH for depositors. This is all performed in one transaction to make the process simple for depositors.
To provide benefit to the entire Stabilize community, some of the earned WETH is sent to the treasury and a new Stabilize staking pool. At any time, depositors can unwrap zs-ETHUSDT for their LP tokens with interest and earned PICKLE and ETH (converted from WETH) based on how long they kept their LP tokens wrapped. Since each deposit resets the timer, it is recommended to unwrap first before wrapping more LP tokens.
New STBZ staking pool:
Part of the profit from the strategies will go to the new staking pool as WETH. So in addition to burning STBZ tokens into the treasury, holders of STBZ can stake their tokens and passively earn WETH generated from our new strategies.
The end result is a system that is win-win for all entities involved. Depositors earn interest and tokens, stakers earn WETH and the underlying protocol used is not price-suppressed by constant selling of their governance token.
You can use this now:
Just visit the website to get started using the Stabilize protocol, follow us on Twitter and join the community on Telegram