StoneDefi (STN) prides itself as the sole yield management protocol dedicated to creating “Rock Solid Yield” for users in the decentralized finance (DeFi) ecosystem. In this article, we will delve into the following topics: the nature of StoneDefi (STN), its operational mechanisms, the STN Token and The Stone DAO, STN distribution, the price forecast for the Stone Token (STN) cryptocurrency, where to purchase the STN token, and a concluding statement.
What is StoneDefi (STN)?
StoneDefi, commonly known as Stone, is a yield management protocol that aims to maximize returns for liquidity providers while also protecting capital in asset pools and yield farms to safeguard the interests of DeFi investors.
StoneDeFi seeks to generate reliable earnings for DeFi investors. What sets Stone apart from other income aggregation platforms is its emphasis on the credibility of investments. Unlike other protocols that prioritize potential yield, Stone focuses on the viability and integrity of all digital assets.
The name “stone” derives from the concept of a stable income aggregator. Many income aggregators are known for their risky strategies that put investors’ funds at high risk. StoneDeFi developers envision a more significant future for DeFi and recognize the role of investors in achieving this vision. Hence, Stone places great importance on providing “rock solid” income to transform DeFi funding from mere speculation and get-rich-quick schemes into a trusted institution.
This is achieved through thorough assessments of the sustainability and integrity of various investment pools. The protocol also conducts regular audits of active pools and yield farms to monitor changes and protect investor funds.
By hedging single assets through indices, the protocol can 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 stable and maximum yields for users, StoneDefi explores various alternative farming strategies. One of the most progressive strategies employed by Stone is betting on liquid assets.
In collaboration with platforms that generate staking derivatives, primarily StaFi, Stone has developed a method to utilize LP funds to create a flexible redemption for hard Proof-of-Stake (PoS) stakes. Users can redeem tokens locked by rTokens, which can later be traded on platforms such as Uniswap, while still earning income from their locked stakes.
For the liquidity of staked assets to be viable, a system must be in place to verify the credibility of user funds. Stone’s extensive assessment protocol plays a crucial role in this regard. This flexibility enables tokens to circulate without causing inflation while accelerating their price discovery on decentralized exchanges (DEXs).
Users can also utilize wagered tokens for other purposes, particularly trading, where they have access to their profits without the restrictions of lengthy withdrawal periods.
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STN Token and The Stone DAO
Similar to other income aggregators, StoneDefi has its own native token, the Stone token (STN), which is integral to most activities on its platform. The STN token serves several functions that facilitate seamless participation and exchange on StoneDefi.
The primary role of the STN token is to ensure effective protocol governance through its Decentralized Autonomous Organization (DAO). Individuals who stake STN tokens gain voting rights and the ability to propose adjustments to the protocol’s execution.
This DAO approach aims to ensure open and transparent governance of investor funds, countering the closed and centralized regulation that plagues many income aggregators.
The STN token is also used to reward participation in investment pools. Liquidity providers who participate in recommended pools receive varying amounts of STN as recognition and reward.
However, not all pools attract the same number of STN tokens. Token rewards are distributed to incentivize participation in less populated pools. This incentivized system for smaller pools ensures portfolio rebalancing.
STN distribution
The STN token is also utilized for 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 wherein a percentage of STN tokens on the market are repurchased and burned. A portion of the Stone platform’s fee income is allocated to fund the purchase of STN tokens for burning.
What is the Price Forecast for the Stone Token (STN) cryptocurrency?
According to our price prediction index, the Stone Token price is expected to reach a maximum level of $0.1860 throughout 2022.
As early as 2023, the Stone Token (STN) may reach a maximum level of $0.3580, with an average trading price of $0.2662.
In 2025, STN is projected to surpass an average price level of $0.4316. The minimum expected value of the Stone Token price by the end of this year should be $0.3985. Furthermore, STN has the potential to reach a maximum price level of $0.4398.
Where to buy the STN token?
The STN cryptocurrency can be traded on the following exchanges:
Huobi Global
Gate.io
Global Hotcoin
Hoo
Conclusion
While numerous yield management platforms have succeeded in generating consistent returns for investors, they often put users’ funds at risk in pursuit of high yields. This short-term thinking can have detrimental consequences for the DeFi industry and potentially the entire cryptocurrency industry if asset pools are not subjected to proper risk assessments.
However, StoneDefi takes an innovative approach to yield management, ensuring maximum yield for users without unnecessary risk to their funds. Its open and transparent governance through a DAO is also promising, granting investors the authority to contribute to the management of their funds.
More information about STN
Disclaimer: The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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