Velar and StackingDAO Launch First STX/stSTX Stableswap Trading Pair
Velar, a Bitcoin-based liquidity protocol, has partnered with StackingDAO to launch the first dedicated STX/stSTX stableswap trading pair on Stacks. This collaboration enhances liquidity within the Stacks ecosystem by providing a low-cost and efficient solution for trading STX and stSTX tokens.
Velar Offers 5,000 VELAR Daily Rewards
The STX/stSTX stableswap pool improves liquidity and provides incentives for liquidity providers (LPs) through a dual rewards structure, offering 5,000 VELAR in daily rewards and a 50% boost in StackingDAO points. These rewards encourage LP participation and allow users to earn additional benefits such as airdrops or exclusive rewards.
This new pool enables easier entry and exit from staking positions for STX and stSTX holders, reducing friction and enhancing user appeal. The stableswap pool allows for large-scale, efficient swaps with minimal slippage, which is crucial for institutions that require high liquidity and speed in transactions. It also reduces the risk of impermanent loss, a common concern in traditional liquidity pools, making it a more secure option for StackingDAO users.
Velar Partnership Unlocks $2 Trillion in Bitcoin Capital
Philip de Smedt, Co-founder of StackingDAO, noted the partnership's importance, stating that the launch of the stSTX/STX stableswap on Velar DEX marks a significant advancement for the Stacks ecosystem by enhancing liquidity efficiency and implementing a variable midpoint to limit impermanent loss.
This collaboration aims to unlock nearly $2 trillion of dormant capital in the Bitcoin ecosystem. Velar's liquidity protocol plays a vital role in the evolution of Bitcoin’s DeFi landscape, supporting infrastructure needed for a new generation of Bitcoin-native DeFi applications.