- Why Stella Strategy is Unique?
Last updated
Last updated
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.