StoneDefi ($ STN) considers itself the only performance management protocol that focuses on creating ‘rock solid performance’ for users of the decentralized finance (DeFi) ecosystem.

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StoneDefi was founded in September 2020 by Alex Lam. Lam had previously worked with government-affiliated institutions before becoming very interested in cryptocurrencies. So far he has been actively involved in the world of cryptocurrencies, building platforms to support investment groups, especially RockX.

Rockx provides some degree of support for StoneDeFi through the influence of Lam. However, StoneDefi is currently run by a team of about 7 people spread across Southeast Asia.

In the final months of 2020, the StoneDefi project caught the attention of Singapore-based Signum Capital. project then received early stage financing from the Undisclosed Value VC. Signum Capital deals exclusively with blockchain startups and innovations.

Together with his team of finance and cryptocurrency experts, Lam guides StoneDefi as the project leads to becoming the only rock-solid performance management protocol for crypto assets.

What is StoneDefi?

StoneDefi, commonly known as Stone, is a performance management protocol that works to ensure maximum profitability for liquidity providers. It also secures capital in asset pools and yield farms to safeguard the interests of investors in the DeFi sector.

StoneDeFi was designed to create a ‘rock solid’ performance for DeFi investors. Stone differs from other performance aggregator platforms in the priority it places on investment credibility. protocol focuses on the viability and integrity of all digital assets rather than potential performance.

After all, the name “stone” comes from the idea of ​​a rock solid performance aggregator.

Most return aggregators are known for their risky strategies that jeopardize investor funds in high-risk pools. StoneDeFi developers see a much bigger future for DeFi and understand the role of investors in it. Hence its continuing emphasis on ‘rock solid’ performance to transform financing in the DeFi space from mere speculation and get-rich-quick schemes into a credible institution.

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y can achieve this by conducting comprehensive assessments of the sustainability and integrity of different investment groups. protocol also conducts regular audits of active groups and performance farms to keep up with changes and safeguard investor funds.

By hedging individual 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 funds through the Stone protocol.

How to get performance on Stone DeFi ( credit: Stone DeFi)

Liquid Assets Staked

To ensure stable and maximum yield for users, StoneDefi has explored a number of alternative farming strategies. One of Stone’s more progressive strategies is betting on liquid assets.

Stone, in collaboration with platforms that generate equity derivatives (notably StaFi), has developed a way to use LP funds to create a flexible redemption for rigid PoS holdings. Bettors can redeem blocked tokens for rTokens that can later be traded on platforms like Uniswap while still accumulating returns on their blocked bets.

For the liquidity of the staked assets to be viable, there must be a system by which the credibility of the users’ funds is determined. Stone’s extensive evaluation protocol plays a vital role in this phase. This flexibility would make the tokens have sufficient circulation without inflation while accelerating their price discovery on DEX.

Users can also use staked tokens for other purposes, especially trading where they have access to their earnings without the restrictions of the release which can sometimes take up to 28 days.

STN Token and Stone DAO

Like other performance aggregators, StoneDefi has its own native token that is tied to most of the activities that take place on its platform. Stone Token or “STN” has a variety of functions that ensure smooth participation and exchange in StoneDefi.

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STN’s most important role is to ensure effective protocol governance through its Decentralized Autonomous Organization (DAO). People who bet STN tokens are given voting rights and the ability to propose adjustments to the way the protocol is run.

This DAO approach seeks to ensure open and transparent governance of investor funds to counter closed and centralized regulation, which is a common problem for performance aggregators.

Stone’s token is also used to reward participation in investment pools. When liquidity providers participate in different recommended groups, they receive different amounts of STN as recognition and reward.

However, not all groups attract the same number of STN tokens. Token rewards are distributed to encourage participation in less populated groups. This system of incentivizing smaller groups would guarantee the rebalancing of the portfolio.

STN distribution

STN is also used to pay transfer fees in cross-chain executions, as well as as a security deposit on assets with liquid participation. To avoid the devaluation of STN, a system is implemented in which a percentage of the STN tokens on the market are bought back to burn. A percentage of the fee income from the Stone platform is used to finance the purchase of the STN tokens to be burned.

conclusion

While various performance management platforms have been successful in generating consistent returns for investors, one thing they often go wrong with is risking their users’ funds at the expense of high returns. This is a symbol of short-term thinking that could have dire consequences on the DeFi sector and possibly the entire crypto industry if asset pools are not given proper risk assessments.

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But with an innovative approach to performance management, StoneDefi can ensure maximum performance for users without having to risk the user’s background for no reason. Its method of open and transparent government through a DAO is also promising, as it gives investors the authority to contribute to the management of their funds.

information provided in this article is intended for general guidance and informational purposes only. content of this article should not under any circumstances be considered investment, business, legal or tax advice. We do not accept any responsibility for individual decisions made based on this article and we strongly recommend that you do your own research before taking any action. Although every effort is made to ensure that all information provided in this document is accurate and up-to-date, omissions, errors, or mistakes may occur.

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