The collaboration between Velar and StackingDAO introduces the first-of-its-kind stableswap pool with an upgradeable variable midpoint.
Velar, a leading Bitcoin-based liquidity protocol, has teamed up with StackingDAO to unveil the world’s first dedicated STX/stSTX stableswap trading pair on Stacks. This collaboration is poised to reshape the way liquidity operates within the Stacks ecosystem, offering a seamless, low-cost, and high-efficiency solution for trading STX and stSTX tokens.
Velar, known for its role in unlocking Bitcoin’s untapped potential, has consistently worked to bring Bitcoin’s liquidity to decentralized finance markets. By collaborating with StackingDAO, the two projects aim to address a crucial gap in the Stacks ecosystem. The partnership introduces a unique stableswap trading pair on Velar’s decentralized exchange (DEX), dedicated to STX and stSTX tokens.
Peter Watson, Chief Marketing Officer of Velar, emphasized the company’s commitment to innovation. He said the collaboration with StackingDAO marks a milestone in developing the first-ever stableswap pool featuring an upgradeable variable midpoint.
“At Velar, we’re driving innovation […] building the first-of-its-kind stableswap pool with an upgradeable variable midpoint […] showcasing cutting-edge solutions for the Stacks ecosystem. Collaborating with StackingDAO has been incredible […] setting a new benchmark in Bitcoin DeFi”, said Peter Watson.
Velar Offers 5,000 VELAR Daily Rewards
The STX/stSTX stableswap pool not only offers improved liquidity but also promises enticing incentives for liquidity providers (LPs). The platform creates attractive yield opportunities by offering a dual rewards structure, which includes 5,000 VELAR in daily rewards and a 50% boost in StackingDAO points. These rewards will help attract liquidity providers, who can earn additional benefits like airdrops or exclusive rewards as they amass more StackingDAO points.
The new pool allows holders of STX and stSTX tokens to enter and exit their staking positions with greater ease. This is expected to reduce friction, making Stacking more appealing to users. As liquidity providers participate in this ecosystem, they will experience the added advantage of enhanced functionality, particularly for those more familiar with the DeFi landscape.
The stableswap pool will facilitate large-scale, efficient swaps with minimal slippage, a critical feature for institutions that rely on high liquidity and speed in their transactions. Beyond its individual benefits, this partnership is set to strengthen the Stacks ecosystem by fostering collaboration between two of its leading players: Velar, the largest DEX on Stacks, and StackingDAO, the leading liquid staking protocol.
In addition to this, Velar’s stableswap pool offers a unique feature that reduces the risk of impermanent loss, a common issue for liquidity providers in traditional pools. While many liquidity pools expose providers to the risk of losing value due to price fluctuations, Velar’s upgradeable variable midpoint product minimizes this risk, offering a more secure and profitable farming program for StackingDAO users.
Velar Partnership Unlocks $2 Trillion in Bitcoin Capital
Philip de Smedt, Co-founder of StackingDAO, highlighted the significance of the partnership. He emphasized the stSTX/STX stableswap launch on Velar DEX as a major advancement for the Stacks ecosystem.
“The introduction of the stSTX/STX stableswap on Velar DEX is a significant step forward for the Stacks ecosystem. This partnership brings unmatched liquidity efficiency, ultra-low slippage, and a first of its kind variable midpoint implementation on Stacks to limit impermanent loss,” said Smedt.
This partnership isn’t just about enhancing liquidity. It’s about accelerating the mission to unlock the nearly $2 trillion of dormant capital sitting within the Bitcoin ecosystem. Velar’s liquidity protocol is at the forefront of Bitcoin’s DeFi evolution, and this collaboration with StackingDAO represents a major step in providing the infrastructure needed for a new generation of Bitcoin-native DeFi applications.
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