We're thrilled to announce the addition of a new pair to our stableswap feature on the Stacks network! This expansion of Velar DEX builds upon our successful USDH<>aeUSDC pool, further enhancing efficient, low-slippage trading for stable assets on the Stacks blockchain.

What is Stableswap?

Stableswap is an innovative automated market maker (AMM) designed specifically for trading between assets that are expected to maintain roughly the same value, such as stablecoins pegged to the same currency. Unlike traditional AMMs that use a constant product formula, stableswap employs a specialized curve that allows for more efficient trading of stable assets.

This advanced algorithm provides a multitude of benefits for traders and liquidity providers alike, setting a new standard for stablecoin exchanges in the Stacks ecosystem.

Introducing Our Latest Pair: stSTX<>STX

Following the success of our USDH<>aeUSDC pool, we're excited to announce our newest stableswap pair: stSTX<>STX. This addition represents another significant milestone for the Stacks ecosystem, offering users a seamless way to swap between STX and its staked counterpart, stSTX.

The stSTX<>STX pair provides several unique advantages:

• Efficient liquidity management for STX stakers

• Easy entry and exit for Stacks staking positions

• Enhanced capital efficiency for STX holders

By facilitating smooth transitions between STX and stSTX, we're continuing to expand our offerings to empower users with optimized Stacks-based strategies.

Key Features of Velar stSTX<>STX Stableswap Pair

Advanced Dynamic Midpoint Implementation

Our stableswap's cornerstone feature is the fully upgradeable dynamic midpoint mechanism, maintained by StackingDAO. This first-of-its-kind implementation on Stacks synchronizes pool exchange rates with actual staking contract rates in real-time, offering unique advantages:

• Instant Execution: Experience staking contract-level accuracy with immediate trade execution

• Future-Proof Design: As StackingDAO upgrades their staking contracts, the implementation evolves automatically

Enhanced Trading Experience

• Ultra-Low Slippage: Execute large trades with minimal price impact, ideal for institutional investors and whale traders

• Optimized for Stable Assets: Our specialized curve delivers better rates than traditional AMMs, resulting in more favorable trades

• Enhanced Capital Efficiency: More efficient liquidity utilization creates deeper pools and stable trading conditions

Liquidity Provider Benefits

• Protected Position: Dynamic synchronization with staking contract rates significantly reduces arbitrage opportunities

• Minimal Impermanent Loss: The stable nature of paired assets combined with our dynamic midpoint mechanism provides a conservative risk profile

• Sustainable Returns: Reduced arbitrage risk and efficient liquidity usage create a more stable earning environment

This implementation effectively turns swaps into instant deposit/withdrawal operations on the staking contract, delivering the best of both worlds - perfect pricing and immediate execution.

Lucrative Liquidity Provision Rewards

To celebrate the launch of our stableswap feature and incentivize early adopters, we're offering an attractive rewards program for liquidity providers of the stSTX<>STX pair:

$VELAR Rewards: Liquidity providers who stake their LP tokens will be eligible for a whopping 5,000 $VELAR in daily rewards. This generous incentive underscores our commitment to building a robust and liquid market for this crucial pair.

StackingDAO Partnership

We're thrilled to announce our strategic partnership with StackingDAO, which brings additional benefits to our liquidity providers. LPs for the stSTX<>STX pool on Velar will be eligible for a 50% reward booster on StackingDAO points.

Philip, founder of StackingDAO, shares his enthusiasm about the partnership:

"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. By integrating StackingDAO's rewards boost, we're empowering liquidity providers with greater incentives and advancing our shared vision of building robust and innovative DeFi solutions on Stacks. We're excited to see this collaboration set a new benchmark for the ecosystem."

What does this mean for you? By providing liquidity to the stSTX<>STX pool, you're not only earning $VELAR rewards but also supercharging your StackingDAO points accumulation. These points can be used for governance, boosted yields, and other exciting features within the StackingDAO ecosystem.

To learn more about StackingDAO points and their myriad benefits, visit https://app.stackingdao.com/points.

These dual rewards create a compelling opportunity for users to participate actively in the Velar ecosystem while simultaneously benefiting from our strategic partnerships.

How to Use Velar DEX Stableswap

Getting started with Velar DEX Stableswap is quick and easy:

1. Visit the Velar DEX webapp

2. Connect your wallet (ensure you're on the Stacks network)

3. Navigate to the Stableswap section

4. Select stSTX and STX for swapping

5. Enter the amount you wish to swap

6. Review and confirm your transaction

For liquidity providers looking to maximize their returns:

1. Add liquidity to the stSTX<>STX pool

2. Stake your LP tokens to start earning $VELAR rewards

3. Enjoy the additional StackingDAO points boost automatically applied to your account

Why This Matters

The expansion of stableswap on Stacks through Velar DEX, now featuring both USDH<>aeUSDC and stSTX<>STX pairs, continues to open up new possibilities for traders and DeFi users on the Stacks blockchain. Here's why this growth is important:

• Efficient Capital Use: Stableswap allows for more efficient use of capital, reducing unnecessary slippage and fees.

• Reduced Trading Costs: The optimized curve means lower costs for traders, especially for large transactions.

• Enhanced DeFi Strategies: The stable foundation provided by our stableswap pools enables more complex and efficient DeFi strategies.

• Ecosystem Growth: By incentivizing liquidity provision, we're fostering the growth of the entire Stacks DeFi ecosystem.

• User Empowerment: The combination of low-slippage trades and attractive LP rewards empowers users to make the most of their assets.

• Perfect Price Alignment: The dynamic midpoint implementation ensures that pool rates always reflect true staking contract rates, eliminating price discrepancies.

• Sustainable Architecture: The upgradeable nature of the implementation, managed by StackingDAO, ensures the system can evolve alongside the broader Stacks ecosystem.

• Protected Liquidity: The reduced arbitrage opportunities create a more stable environment for liquidity providers, encouraging long-term participation.

What's Next for Velar DEX

We're committed to continually improving and expanding our offerings. Our roadmap includes:

• Monitoring and optimizing the performance of the stSTX<>STX pair

• Exploring additional stablecoin pairs to further enhance your trading options

• Developing new features to integrate stableswap more deeply into the Stacks DeFi ecosystem

• Expanding our partnerships to bring even more value to our users

Join the Stableswap Revolution

The launch of Velar DEX Stableswap marks a new era for stable asset exchanges on the Stacks blockchain. We invite you to experience the future of efficient, low-slippage trading and lucrative liquidity provision.

Start trading now and be part of this exciting journey! For any questions, support, or feedback, please don't hesitate to reach out to us on Discord or Telegram.

Happy trading and liquidity providing!