First-tier major firms are the first to launch, what is the charm of Stone, the Web3.0 cross-chain aggregation revenue generator?
Stone’s tokens have not yet been issued, but many miners have already joined the ranks of blind mining. These miners don’t know the rate of return, let alone whether they will be able to pay back, but based on their confidence in the project, they have all raised up. The "shovel" in his own hands. Huobi, as a major international firm, announced the news of the listing of STN several days in advance , and its announcement seems to be quite urgent.
The bull market is justified, and projects emerge in endlessly. The first-line large firms are more stringent in reviewing new projects. Especially in the hot sector of DeFi, there are countless new ideas and new projects that are born every day. However, the project of Stone is uncharacteristic and not only used by Huobi. It’s important to note that the launch information was announced several days in advance, as if for fear of being robbed of the starter by others.
So what exactly does Stone do?
About Stone:
Stone focuses on creating stable and reliable revenue management agreements for all users in the DeFi field . The focus of the project is to develop an innovative asset pool to maximize returns on the premise of ensuring that LP funds are as safe and reliable as possible. In this process, the main goal of the project is to build the most risk-resistant platform to meet the growing needs of the DeFi industry.
As the first cross-chain liquid staking asset aggregation revenue device in the Web3.0 concept , Stone also occupies the two most important tracks on Polkadot’s cross-chain: liquid staking & asset aggregation.
Stone will have the following three main functions:
1. Cross-chain POS asset matching and yield optimization: Starting from the Ethereum-based yield management platform, Stone will continue to incorporate POS tokens such as ETH2.0, Dot, Sol, Rose, etc. in an orderly manner to optimize the liquidity of Stone users Pledge rate of return.
2. The yield market of liquid mortgage assets: In addition to the current ERC20 DeFi products, Stone will also establish a lending and trading market for POS assets, and launch products based on yields through cooperation with selected partners in the DeFi ecosystem ("Yield Derivatives"), such as yield convertible bonds, options, etc.
3. Integration and combination of multiple DeFi protocols: By providing stable and reliable revenue, Stone will become a widely used rate of return management protocol and can be combined with a series of DeFi protocols. For example, receiving AUM from insurance agreements and FOF, connecting with liquidity providers, DEX and loan agreements. These designs will maximize the convenience of protocol implementation and build DeFi products for all users in the DeFi market.
The official introduction is a bit confusing, but its actual meaning is well understood. To put it simply, Stone aims to build an industry-wide liquid betting asset aggregation platform that can enable users on the platform to achieve the greatest gains under the premise of ensuring the safety of funds. This saves the DeFi miners from the hard work of running around and saves them a lot of time and handling fees. And the most important thing is that Stone's agreement is not limited to a public chain, but uses cross-chain technology as the bottom layer to shuttle back and forth in many public chain ecosystems, looking for the most reliable and profitable PoS assets. At the same time, Stone can also release the liquidity of mortgaged POS assets on the chain, inject new vitality into these sleeping gold, greatly increase the diversity and depth of DeFi, and promote better value discovery of these POS tokens, and obtain more reasonable acquisitions. Pricing.
If you often participate in the mining of DeFi projects, I believe it should be easy to get the value of Stone. Think about how many times have you waited for mining late at night, and how many times have you been swallowed by black mines? With Stone, all of this will no longer exist. You only need to deposit the principal on the Stone platform, and then enjoy your life, and Stone will automatically find the safest one among the many public chain ecosystems for you. And the most profitable gold mine. In addition, if your POS assets are mortgaged on the chain, Stone can also help you release the liquidity of POS assets, gain more freedom on the premise of enabling users to enjoy stable income, in order to obtain more profits.
Industry Status:
As of January 2021, the total market value of cryptocurrency assets has exceeded US$1 trillion. In particular, the decentralized finance (hereinafter referred to as "DeFi") market has doubled in 2020. As of January 2021, the total value locked in the DeFi market (Hereinafter referred to as "TVL") has exceeded 25 billion U.S. dollars.
From the above data, we can see that the entire DeFi industry has great potential waiting to be released, especially in the PoS asset mortgage. Not only is the scale of assets huge, but there are also very few teams involved in this area, which can be regarded as a piece of fat. Meat, once the Stone team succeeds in leveraging this area, it not only means its own success, but it will even open another brand new track to further promote the development of the industry.
In the industry, many public chains, such as ETH, BSC, HECO, etc., have their own grounds, cutting off funds and information, which greatly increases the cost of DeFi protocol participants and greatly slows down the development of the industry. In the future, the blockchain industry must coexist with multiple chains, and the Web3.0 concept that promotes multi-chain interoperability will also be the general trend. Only in this way can the industry break barriers and usher in more rapid development. The interoperability of multiple chains is the key to supporting web3.0. Stone is paving the way for the future of Web 3.0, providing a cross-chain asset income aggregation platform, and creating Rock Solid Yield for users.
Stone's outlook:
In order to better solve the industry's pain points and become the industry-wide cross-chain aggregate revenue manager, Stone will gradually complete the four development parts : passive income fund library, liquid POS income pool, risk optimization income index, and cross-chain strategy .
1. Passive income fund library:
Including stablecoin strategy executor and asset allocation optimizer.
1. Stablecoin strategy executor
The income of stablecoins accounts for a high proportion of the entire industry. At present, the income of stablecoins mainly comes from the following three points:
-Interest accrued from the loan agreement
-Provide liquidity sharing transaction fee (LP)
-Governance tokens or revenue generated by platform tokens
In response to these three points, Stone will launch a single-asset and multiple-strategy fund library. The technology platform will restrict funds from being deployed to lending agreements with whitelists, so users' funds will not be moved out of designated places. Users will receive interest on the loan agreement (Stone will switch between different strategies to take advantage of the highest yield) and STN token rewards.
2. Asset Allocation Optimizer
This is a user-guided asset allocation tool designed to help users allocate funds to build investment portfolios. Stone also provides configuration recommendation algorithms such as the largest capital APY and the best Sharpe index APY for users' reference.
On Stone, users can adjust their asset allocation among multiple DeFi tokens and risk exposures through Stone’s portfolio management.
Asset Allocation Optimizer, as a guiding asset management tool, will help users manage assets. By deploying assets on the basis of the investment portfolio, users can diversify the configuration of DeFi assets to obtain more ideal returns.
2. POS liquidity income pool
DeFi has successfully motivated users to establish a large liquidity pool of DEX and a loan agreement for ERC20 tokens, so that the user experience is as smooth as a centralized platform. In fact, the same idea can also be applied to the POS mechanism. The income of POS is usually based on mortgage tokens. The more mortgage, the higher the income. This creates a stable rate of return for token holders and creates opportunities for appreciation when the price of tokens rises. At present, many teams are studying how to release the liquidity of POS mortgage tokens, and the benefits of this are obvious.
Stone believes that PoS liquidity revenue pool is a very attractive strategy, including Ethereum 2.0, Polkadot, Solana, Oasis, Terra, etc. will be introduced to the platform one after another.
3. Risk optimization return index
Several indexes have been established on the market to track the price of tokens. These indexes correspond to stock indexes in traditional financial markets. Stone proposes a larger market that will bring more benefits to users. These indexes are equivalent to bond indexes, such as Bloomberg Barclay Global.
In the traditional financial market, the bond market is much larger than the stock market, and the yield is more stable. As of December 2020, the global bond market is about 123 trillion U.S. dollars, and as of December 2020, the global stock market is estimated to be 85 trillion U.S. dollars. In the foreseeable future, the market size of DeFi will also expand rapidly, and its demand for indexes will continue to increase.
Fourth, cross-chain strategy
With the help of Polkadot's cross-chain capabilities, Stone is also looking for bridges for other on-chain assets to join Stone. In addition to Ethereum and Polkadot, Stone continues to adopt Bitcoin in the DeFi ecosystem and Stone's cross-chain market, because Bitcoin is in great demand in the ecosystem and is growing rapidly. As of January 2021, there are a total of 148,147 Bitcoins on Ethereum. Compared with the 1,000 bitcoins on Ethereum in January 2020, this is an increase of approximately 148 times .
Through the bridge built by Interlay and other protocols, Stone can easily transfer valuable assets such as Bitcoin and ZCash to the Stone platform to generate revenue. These large market capitalization assets will be able to form an attractive index, allowing ordinary users to enter the cryptocurrency market while hedging risks and high liquidity.
Stone's team:
In order to guide the development of technology, the RockX team and the DeFi community have worked hard to launch the alpha and public versions of the Stone protocol for the community, and promised to lead the technology development in the next two years before the community decides the next step.
RockX is a development company with deep experience in blockchain development, running various blockchain validators, such as Polkadot, Terra, Solana, Oasis. RockX also pledged to support the Polkadot ecosystem through technology and funding in the next five years.
Project Analysis:
For DeFi miners running around in various mining pools, an easy-to-use cross-chain revenue aggregator can obviously liberate them from their busy mining career. Therefore, for the Stone project itself, the entry point for its selection is very precise, especially for large funds, a stable and safe income aggregator is simply a good idea for the giants of miners. At the same time, compared with other revenue aggregators, Stone not only chose cross-chain technology at the bottom, but also added the innovation of liquidity betting revenue, which greatly increased the ceiling of project development. And because it has the attribute of aggregator, this will enable Stone to frequently cooperate with various public chain ecology, and it also means that Stone has the potential to be repeatedly exposed to attract traffic.
However, although the concept of the cross-chain aggregation platform is fantastic, the difficulty of technical realization is correspondingly higher than that of ordinary projects by several floors. If you want to develop a usable cross-chain aggregation revenue manager, the project team is not under pressure. Small, I hope that the project team can really follow the plan in the white paper and make a product that allows us to experience it!
contact details:
Twitter: https://twitter.com/DefiStone
Telegram: https://t.me/stonefortress
Website: https://www.stonedefi.io/
Official Chinese Telegram: https://t.me/stoneCNofficial
Reference material: Stone litterpaper: https://www.stonedefi.io/file/stone_litepaper.pdf