Amongst the sea of yield protocols, I found one that is:
📌 Backed by big boys
📌 Building on blue-chip projects
📌 Community driven
📌 Deeply involved team
One that is quietly building on top of a DeFi giant, @GMX_IO 🧵👇
In this thread, I will cover:
1️⃣ What is @steadefi and its goals?
2️⃣ Products
3️⃣ How can you use @steadefi?
4️⃣ Roadmap & Partnerships
5️⃣ Concluding Analysis 🌟🌟
1️⃣ What is @steadefi and its goals?
@steadefi is a leveraged yield aggregator built on @avalancheavax.
Its battle tested strategies uses:
▪ Undercollaterized loans for 3x leverage to
▪ Fully automate user actions around
▪ Real yield strategies with
▪ Risk management
2/
Steadefi aims to solve yield farming problems like unpredictable returns and excessive position management.
They plan to use auto-rebalancing, real predictable yields, and historical data access to help investors.
3/
With that it aims to:
▪ Boost yield
▪ Build a community of yield seekers
▪ Expand partnerships
▪ Cater to investors with various risks profile
Ultimately, Steadefi wants to automate and optimise real yield generation with risk management for DeFi yield farmers.
4/
2️⃣ Products
In essence, users can use @steadefi in 2 ways by depositing into:
🔹Lending Pools
🔹Strategy vaults
5/
🔹Lending Pools
These pools are capital maximising as loans are undercollaterized. So, borrowers can get 3x leverage loans more efficiently.
Lenders can deposit into Lending Pools while earning yields from borrowers as they take loans with strategy vaults.
6/
The usual risks still exists for lending pools.
However, Steadefi mitigates them by:
❗Rebalancing to reduce leverage - Bad debt
❗⬆️ Borrowing cost & incentives - Lack of liquidity for withdrawal -
❗Audits from @Omniscia_sec - Smart contracts risks
7/
The best part? Steadefi saves the users from the hefty fees and they can enjoy much flexibility:
✅ No deposit fees
✅ No withdrawal fees
✅ No default lockups for lending vaults
8/
🔹Strategy vaults
@steadefi current strategy vaults can be categorized into 4 pillars:
▪ Swap LP vaults
▪ Perp DEX LP vaults
▪ Liquid staking vaults (TBA)
▪ Volatility Yield vaults (TBA)
9/
It has 7 leverage yield vaults with 3 kinds of possible strategy position. So far, what they have are Long and Neutral, while the Short ones are in the development pipeline.
10/
3️⃣ How can you use @steadefi?
Investors with different risk profiles can choose to deposit in vaults or just in lending pools
Risk-on investors can deposit into the leveraged vaults while risk-off ones can choose to go with just pools.
11/
Narratives around Perp DEXes are strong as people shun away from the predatory CEXes and its non-custodial wallets on CEXes.
So of the 7 vaults, @GMX_IO vaults might steal the spot light.
12/
🔹3x Long GLP GMX
The other leveraged LONG strategies would adopt largely the same framework.
You might see a difference in the PnL vs APR numbers. So, PnL of 89% in the docs represents APY while the 49% shown in the vault page is APR.
dApp UI is updated as well!
13/
🔹3X Neutral AVAX-USDC Pangolin
I do like DN strategs they churns out the most yields in a crabbing market. Sort of where we have been for the most part of end 2022.
@pangolindex's backtesting showed more strength vs @traderjoe_xyz.
14/
5️⃣ Roadmap & Partnerships
@steadefi shared their "Yield Roadmap" in their early days.
It plans many strategies and strong partnerships within the @avalancheavax ecosystem.
15/
They have also hinted some form of @CurveFinance's Tricrypto vault integration. 👀
16/
5️⃣ Concluding Analysis
(Disclaimer: Thoughts shared here are personal and could be bias, please exercise your DD)
My take: @steadefi is just starting out and will be a keeper to watch with strong backing and partnerships
17/
🔹 Vibes and Leadership
Spoken to team and they give me vibes of commitment and delivery. Just look how they manage their discord.
Founder, project lead and BD/marketing are involved in helping community.
Pretty active twitter and engaging a lot with community tweets.
18/
Even their project lead, @jefflam_, finds opportunities amongst the "sea of tweets" on twitter.
Leading by example!
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🔹 Expansion
As @steadefi builds a strong base, it would only be a natural hunt for other great yield opportunities on perp DEXes like @ApolloX_Finance @GainsNetwork_io @Level__Finance
This also suggests the kind of chains they would be looking for expansion.
20/
🔹 Community driven
Team understands that their community of yield strategists determine their success.
Look at @phtevenstrong, @TaikiMaeda2. They have created a community of strategists and farmers.
Nothing can beat collective minds.
21/
🔹 Capital raise
Rather bullish here as @steadefi is backed by the big boys, like Blizzard Fund, Cryptonite Capital, and Kyber Ventures.
On the flip side, I would be wary as this will skew how tokenomics play out. I prefer if it favours community.
blog.steadefi.com/steadefi-succe…