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StellaPrime.com
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  • 🇷🇺FAQ @stellaprime_bot RUS
  • 🌟Getting Started
  • 🤝Pay-As-You-Earn (PAYE) Model
  • Protocol Mechanism
    • 🔖How Stella Works?
    • 🏠Stella Lend
    • - Why Stella Lend is Unique?
    • - Yield Vault
    • - Supported Assets
    • 🤑Stella Strategy
    • - Why Stella Strategy is Unique?
    • - Get your own NFT.
    • - Collateral Factor
    • - Borrow Factor
    • - Price Range
    • - Price Impact
    • - Supported Strategies
    • - Leverage
  • 💰Yield Calculation
  • - Yield Sharing
  • 👁️Contacts
    • Contacts
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  1. Protocol Mechanism

- Why Stella Strategy is Unique?

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Last updated 1 year ago

Leverage with 0% Cost to Borrow

Stella Strategy empowers leveragoors by enabling them to borrow supported assets from Stella Lend to execute DeFi strategies with a bigger position at a 0% borrowing cost. This effectively eliminates the problem of high borrow interest rates associated with the previous lending model during periods of high utilization. Leveragoors can have peace of mind knowing that borrowing costs will never surpass the yields generated from their strategies.

🏄🏼‍♂️ Pay-As-You-Earn (PAYE) Model: “No Gain, No Pay” Motto

Unlike the traditional accruing borrow interest model, Stella's PAYE model requires leveragoors (borrowers) to share their strategy yields with lenders. If leveragoors do not generate profits, they are only responsible for repaying the borrowed amount (their debts) without any additional payments. In simpler terms, it follows the principle of "No gain, no pay!"

Additionally, Stella's model is designed to reduce the percentage cut deducted as leveragoors generate more yields. This creates a mutually beneficial arrangement where lenders will benefit as leveragoors gain more from their positions.

🛍 Multiple Selections of Leveraged Strategies

Stella strives to serve as the gateway for users to access a wide range of leveraged strategies by prioritizing quick responsiveness to meet the evolving needs of users, especially in the DeFi world. With varying levels of knowledge and backgrounds, users will find a leveraged strategy in DeFi that aligns with their individual approaches.

🛡️100% Safe Undercollateralized Loans

One of the key features of Stella Strategy is its ability to achieve undercollateralized loans and increase the capital efficiency. This is made possible by using the LP Token of the position as collateral within its contract. By doing so, Stella Strategy effectively protects itself from potential losses due to underwater positions and minimizes the risk of bad debt.