FAQs

Below are some answers to common questions asked about Statera and its ecosystem.

About Statera and the Ecosystem

Statera (STA) is a smart contract powered Indexed Deflationary Token (IDT), which synergizes with a trustless and community-driven portfolio of class-leading cryptocurrencies

Deflation decreases volatility and increases positive price pressure of the liquidity pools it lives in. The deflationary mechanism also benefits the ecosystem it works in, by increasing volume (trades), which increases chances for rebalances/swaps, therefore producing tighter spreads and increased access to arbitrage.

This means that the value we bring increases the ability of the system to function more efficiently (tighter spreads, less slippage, better fees for users).

TL;DR

  • Increases positive price pressure and decreases volatility
  • Gives one-token access to the ecosystem
  • Deflation can be put into any index fund or other financial instrument
  • Deflation rewards loyalty
  • Allows diversification
  • Enables passive income

This digital asset will be continuously tradeable for 1 STA (and vice-versa) via the “wrap” and “unwrap” functions in the wSTA contract. Once converted, that wSTA does not deflate with each transaction. However, every creation or destruction of a wSTA - or the trading of STA for wSTA - will create deflation.

Composability - the 1% deflationary mechanism of Statera meant it was a security risk on certain platforms. wSTA allows STA to be spread far & wide (increasing network effect), and to be used in more systems (increasing utility).

Arbitrage - wSTA will be constantly balanced with STA to keep their two prices equal. Whenever the prices are unequal, STA will be wrapped, unwrapped, sold, or bought by someone looking for profit. This will make STA more usable to active traders and bot creators, and an attractive option for people (or bots!) who like to turn market inefficiencies into profit. That means increased volume, which means increased deflation, and increased fee returns for liquidity providers.

More Deflation - With the wrapping, unwrapping, and trading of STA for wSta, each transaction will have a 1% deflation to it.

A new way to hold STA - If you plan to hold 100% STA it can be advantageous to do so as 50/50 wSTA/STA, by joining the Uniswap Liquidity Pool. While holding 100% STA you can still benefit from fees paid to liquidity providers, with negligible risk of impermanent loss, as wSTA & STA will always be nearly identical in price.

Statera’s deflationary nature results in 1% of the STA in each transaction being burned.

wSTA can only be minted through wrapping the STA token, however it is also tradeable with STA or ETH on Uniswap or other DEXs. This results in a natural price equilibrium between STA/wSTA, as arbitrageurs will take advantage of any price disparity between the tokens. This arbitrage results in Statera’s deflation and in higher volume across the ecosystem.

wSTA is then safely implemented in any third-party protocol - such as Balancer, where our Index Pools reside. As the component assets’ prices fluctuate, they are constantly rebalanced - increasing deflation and arbitrage opportunities which then leads to further volume. This self-perpetuating cycle results in higher fees paid to liquidity providers.

In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets. For the following example let’s assume that you hold 50,000 STA which currently has a price of $0.10 (for $5,000 total), and wSTA has a price of $0.106:

  1. Wrap 50,000 STA
    • 500 STA is burned
    • You receive 49,500 wSTA (worth $5,247)
  2. Trade 49,500 wSTA for 52,470 STA on Uniswap
    • 524.7 STA is burned
    • You receive 51,945.3 STA



Due to the purchase of STA and the selling of wSTA, this trade closes the price spread. After the trade, STA is worth $0.103 and wSTA is $0.10403

By taking advantage of the price difference between STA and wSTA you are able to increase your Statera holding from 50,000 ($5,000) to 51,945.3 ($5,350.37), even though you have burned 1,024.7 STA in the process.

The balancer pools constantly buy and sell wSTA as the relative asset prices in the pools fluctuate, causing these arbitrage opportunities to arise - the same principles apply if wSTA falls in relative value to STA. As demonstrated above, this results in higher volume, deflation, and fees paid to liquidity providers.

They are the native token of the Balancer protocol and are rewarded to users for providing (whitelisted tokens) liquidity on their platform.

BAL tokens are accrued on a weekly basis (Tuesdays) and need to be claimed, this can be done at claim.balancer.finance. You don't need to claim every week, accrued BAL tokens will stay there until you claim.

This is not the same thing as BPT (Balancer Pool Token)

Please note: excluding Delta, all tokens in our Balancer Pools are whitelisted

BPT (Balancer Pool Token) is what you are given anytime you deposit into a Balancer liquidity pool. It represents your share of the liquidity pool.

As liquidity is added and removed, BPTs are minted and burned, this is done relative to the price of the pools BPT. For example, if 1 BPT = $10 and you deposit $1,000 into the pool you will mint 100 BPT tokens.

The price of the pool's BPT is the easiest way to track overall fund performance

Practical Questions

You can buy STA or wSTA through Uniswap (or DEX aggregators such as 1inch) with Ethereum using a Web3 wallet (e.g. MetaMask, MyEtherWallet, Coinbase Wallet).

If you encounter a transaction error when attempting to trade STA, please ensure that:
  • Slippage tolerance is set above 1% (e.g. 1.1%) to account for STA's deflation
  • You are purchasing a whole number of STA, with no decimals (e.g. 10,000 STA rather than 10,000.934 STA)

You can either watch this YouTube video, or you can follow these steps:

Part 1 - Approving wSTA on the STA contract

Open the Statera (STA) token Etherscan page

  1. Select connect to web3
  2. Go to approve
    • Spender address: 0xeDEec5691f23E4914cF0183A4196bBEb30d027a0
    • Value: The number of tokens you want to wrap.
  3. Select the plus icon
  4. Select the 10^18 option
  5. Select Write
  6. Wait for approval confirmation
This will approve the wrapping function. If you plan on wrapping in the future again select a large number of tokens to avoid constantly having to approve.

Part 2 - Wrapping your Statera

Open the Wrapped Statera (wSTA) token Etherscan page

  1. Select wrap
  2. Enter the token amount
  3. Select the + and choose 10^18
  4. Select write to wrap
To unwrap is the same process, just select Unwrap instead of Wrap (it's the option above it)

If you are getting a high gas quote please check:
  • that you have approved wSTA on the STA contract
  • the approval process has completed
  • you have approved enough tokens for the volume you want to wrap/unwrap

The first time you are entering a liquidity pool there are three steps to follow:

  1. Setup of proxy contract (this is a one-off event)
  2. Unlock the tokens you would like to use
  3. Add liquidity
When adding liquidity into a Balancer pool you have the option to use all the assets or a single asset. If liquidity is added using a single asset it is important to note that you no longer only hold that asset. Once liquidity is added you will be given a Balancer Pool Token (BPT), this represents your share of the liquidity pool - a pool that is represented by all the tokens in it.

When you remove liquidity, you can receive your funds in the form of all the tokens or any specific one of your choosing.

For example: if you deposit wETH into our Stanos Fund, you will receive BPT tokens that are made up of wSTA/ wBTC/ wETH/ SNX and LINK. When you remove liquidity you can choose to get your funds in wETH like you deposited, in all 5 tokens, or even in wSTA.