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The thesis
What is @StaticsProtocol?
First and foremost, it is a DEX built on Uniswap v4 using v4 Hooks. These hooks handle how swap fees are distributed.
This is not a ve(3,3) attempt being built on Uniswap v4. It is a brand new way of thinking when it comes to how fees are distributed.
Normal LPs, $STATICS stakers, and our upcoming Basket Token stakers all get a cut.
The powerful part is what staking $STATICS gets you.
You get to choose any 12 assets on the DEX. Your stake weight is applied equally to ALL 12 assets. This weight is applied to a Fee Index, and this means selecting, say, NVDA gets you a share of EVERY pool that trades NVDA.
Not just one...
BUT EVERY POOL.
No voting, no gauges, no managing concentrated liquidity.
Literally set it and forget it!
Now, what about LPs?
Because stakers get a cut from all pools, they only get a small slice, but multiple pools or low opt-in participation compound this!
This means the larger slice is reserved for LPs.
They MUST provide liquidity from within the platform to get rewards, though.
But this means that as an LP, you can provide liquidity AND stake and get a cut of every other pool trading your desired opt-in assets.
Like I said, powerful!
Further, we allow users to borrow the $STATICS tokens backing their Operator NFTs!
Borrow up to 95% LTV, or 171K $STATICS, and...
STAKE IT!
Opt into 12 assets of your choice and you have yourself a nice carry trade!
On top of all of this?
A % of ALL $STATICS trading fees goes toward hard ETH backing for the Operator NFTs.
This can only ever grow in ETH backing!
Redeem the NFT to the vault and unlock 180K $STATICS AND the ETH reserve backing!
To pull an NFT from the vault, you MUST deposit 180K $STATICS, the ETH acquisition fee that grows the reserve, and the current share of the reserve backing the NFT.
This means that if the ETH price stays flat or pumps, the cost to obtain the NFT only grows, making them increasingly harder to acquire.
Early conviction is rewarded!
Now, to be clear, the DEX isn't live yet, and we are still in our Genesis Epoch, so Credit is not enabled yet.
But you do not have to buy into the reserve, which is already at 0.000227 ETH after 48 hours.
Redemption during the Genesis Epoch only releases 180K $STATICS.
What does this mean?
Instant growth in the ETH backing your NFT if acquired during the Genesis Epoch.
Now, all that being said, this is really only scratching the true $STATICS surface.
Will post more technicals soon!
We will win together.
🔍 Curated by @iamXD79
✍️ Original thesis by @hooftly
🔗 https://x.com/hooftly/status/2093906743747297780