StoneDefi (STN) considers itself the only yield management protocol focused on creating “Rock Solid Yield” for users of the decentralized finance (DeFi) ecosystem.
In this article, we will discuss:
What is StoneDefi (STN)?
StoneDefi, commonly referred to as Stone, is a yield management protocol that works to ensure maximum returns for liquidity providers. It also secures capital in asset pools and yield farms to safeguard the interests of investors in the DeFi sector.
StoneDeFi is designed to create “solid” income for DeFi investors. Stone differs from other income aggregation platforms in the priority it gives to the credibility of investments. The protocol focuses on the viability and integrity of all digital assets over potential yield only.
After all, the name “stone” comes from the idea of a solid income aggregator.
Most income aggregators are notorious for their risky strategies that put investors' funds in high risk pools at risk. StoneDeFi developers see a much bigger future for DeFi and understand the role of investors in it. Hence, its enduring emphasis on “rock solid” income to transform funding in the DeFi space from just speculation and get-rich-quick schemes into a trusted institution.
They are able to achieve this by performing thorough assessments of the sustainability and integrity of different investment pools. The protocol also conducts regular audits of active pools and yield farms to track changes and protect investor funds.
By hedging single assets through indices, the protocol is able to venture into more volatile pools while mitigating investor risk. Consequently, investors can enjoy reliable and consistent passive income from liquidity pools through the Stone protocol.
How does StoneDefi (STN) work?
To ensure a stable and maximum yield to users, StoneDefi explored several alternative farming strategies. One of Stone's most progressive strategies is betting on liquid assets.
Stone, in collaboration with platforms that generate staking derivatives (mainly StaFi), has developed a way to use LP funds to create a flexible redemption for hard PoS stakes. Punters can redeem tokens locked by rTokens which can be later traded on platforms such as Uniswap while still accumulating income on your blocked bets.
For the liquidity of staked assets to be viable, there must be a system by which the credibility of user funds is verified. Stone's extensive assessment protocol plays a vital role at this stage. This flexibility would see the tokens in sufficient circulation without inflation while accelerating their price discovery on DEX.
Users can also use wagered tokens for other purposes, especially for trading where they have access to their profits without the restrictions of unlimited which can sometimes take up to 28 days.
STN Token and The Stone DAO
Like other income aggregators, StoneDefi has its own native token that is tied to most activities performed on its platform. The Stone token or “STN” has a variety of functions that ensure smooth participation and exchange on StoneDefi.
The most important role of the STN is to ensure effective protocol governance through its Decentralized Autonomous Organization (DAO). Individuals who stake STN tokens receive voting rights and the ability to propose adjustments to the way the protocol is executed.
This DAO approach seeks to ensure open and transparent governance of investor funds to counteract closed and centralized regulation, which is a common problem for income aggregators.
Stone's token is also used to reward participation in investment pools. When liquidity providers participate in different recommended pools, they receive different amounts of STN as recognition and reward.
However, not all pools attract the same number of STN tokens. Token rewards are distributed to encourage participation in less populated pools. This incentive system for smaller pools would guarantee the rebalancing of the portfolio.
STN distribution
The STN is also used for the payment of transfer fees on cross-chain executions, as well as a security deposit on staked net assets. To prevent STN devaluation, a system is implemented where a percentage of STN tokens on the market are bought back to be burned. A percentage of the Stone platform's fee income is used to fund the purchase of the STN tokens to be burned.
What is the Price Forecast for the Stone Token (STN) cryptocurrency?
The Stone Token price is predicted to reach a maximum level of $0.1860 throughout 2022.
As early as 2023 according to our crypto price prediction index, in 2023 Stone Token (STN) may reach a maximum level of $0.3580, with the average trading price of $0.2662.
In 2025 according to our crypto price prediction index, STN is expected to cross an average price level of $0.4316. The minimum expected value of the Stone Token price at the end of the current year should be $0.3985. Furthermore, STN can reach a maximum price level of $0.4398.
Where to buy the STN token?
STN cryptocurrency can be traded on the following exchanges:
- Huobi Global
- Gate.io
- Global Hotcoin
- Hoo
Conclusion
While several yield management platforms have been successful in generating a consistent return for investors, one thing they often get wrong is risking their users' funds at the expense of high yields. This symbolizes short-term thinking that can have dire consequences on the DeFi industry and possibly the entire cryptocurrency industry if asset pools are not given proper risk assessments.
But with an innovative approach to yield management, StoneDefi is able to guarantee maximum yield for users without having to risk user's fund without cause. Its open and transparent method of governance through a DAO is also promising, giving investors the authority to contribute to the management of their funds.
