Stabilize Finance: Arbitrage Made Easy For Traders
The emergence of decentralized finance (DeFi) in the cryptocurrency industry has exposed investors to more opportunities to earn rewards from their digital assets.
However, since the DeFi sector is relatively new, many users do not yet fully understand how to invest and what project is most promising among the rapidly growing list of DeFi products in the market.
The highly speculative nature of the cryptocurrency industry also makes it very difficult for investors to determine what project to invest their funds in, due to extreme price fluctuations. Stabilize Finance is a platform that allows users to earn from price fluctuations between various tokens.
What is Stabilize Finance?
Stabilize Finance is a DeFi application designed to keep the prices of stablecoins, Bitcoin, and Ethereum proxy tokens relatively stable using strategies that tend to arbitrage across thousands of exchanges.
In a nutshell, users of this platform can earn from the price fluctuations on these listed tokens, among other rewards.
Although stablecoins and other proxy tokens like Wrapped Bitcoin (wBTC) were created to maintain a stable price and discrepancies, they sometimes have fluctuations due to differences in demand and supply.
The Stabilize Protocol offers its users a chance to take advantage of arbitrage opportunities, using advanced economic scaling techniques to collaborate with stable coin initiatives while producing debt-free reward incentives for users and underlying assets. The platform stands to solve one of the crypto industry’s most pressing needs — stabilization.
The Stabilize Protocol brings advanced features to the table and they are what supposedly makes it different from other DeFi platforms in the crypto industry. Some of these include:
The development team at Stabilize Finance understands the importance of strong security systems, considering that several DeFi protocols have been exploited by bad players in the industry.
The team dedicates a portion of its funds to smart contract reviews and audits. It is currently audited by Bramah and DeFiYield.
Unlike most DeFi protocols that give their development teams complete control of minting their reward token, Stabilize Finance allocates this task to smart contracts to prevent developers from minting infinite tokens and subsequently destroying all liquidity pools for that token.
The operator contract controls the minting rate and the only thing the development team can do is to decrease it. Additionally, all governance functions on the platform are controlled by a 24-hour timelock, giving depositors enough time to decide to stay in the protocol or not.
Stabilize also uses decentralized on-chain price oracles provided by Chainlink and Aave to access real-world data, which are resistant to flash crashes and manipulations, to determine the pools’ reward rates.
Stabilize offers its users free educational materials that provide insight into the DeFi space, this makes it beginner-friendly. These materials are well detailed and can be used even by a rookie trader who has no experience of trading or participating in DeFi applications.
The platform gives users access to a detailed explanation of everything on its platform and DeFi, proven trading strategies that are guaranteed to help them make smart trading decisions.
Stabilize has a great user support system that provides users with one-on-one solutions to whatever challenges they might be having.
If users do not clearly understand the materials provided by the platform, they can reach out to the support system via their various social media handles and table their cases.
While most platforms charge users exorbitant fees for both deposits and withdrawals, the platform does not charge users any deposit or withdrawal fees.
Tokenomics: The STBZ Cryptocurrency
The Stabilize protocol has its native token, the STB token, with a maximum cap of 1 million tokens. About 99% of the STBZ emissions go to the liquidity provider (LP) stakers while the remaining 1% goes to the protocol’s development team.
The STBZ token is given to depositors on the Stabilize platform and it has three major use cases:
Staking: Users can stake their STBZ tokens in the STBZ staking pools and this allows them to earn a percentage of the profits generated by the protocol.
Burning: STBZ holders can burn their tokens into the platform’s treasury to receive a percentage of the token’s circulating supply.
Governance: The STBZ token can also be utilized to vote on certain proposals that can impact the entire Stabilize Finance ecosystem.