Hassan Maishera
Velar, the leading Bitcoin-based liquidity protocol, announced on Tuesday, November 26th, that it has partnered with StackingDAO to launch the first of its kind dedicated stableswap trading pair for STX/stSTX tokens on Stacks.
In a press release shared with Cryptowisser, Velar added that the STX/stSTX stableswap trading pair on Velar DEX would solve a critical liquidity need for the Stacks ecosystem. It utilizes a specialized stableswap curve to enable rapid, low-slippage swaps for STX tokens and its staked version, stSTX, with minimal fees.
Thanks to this latest development, investors will have more fluidity when entering and exiting their STX staking positions. This reduces friction and enhances the appeal of Stacking.
Furthermore, STX and stSTX holders can take advantage of compelling yield opportunities. Liquidity providers are enticed by a dual rewards structure that consists of 5,000 VELAR in daily rewards plus a 50% boost on StackingDAO points. By amassing StackingDAO points, LPs may become eligible for future benefits, including rewards, airdrops, and more.
According to Velar, experienced DeFi users in the Stacks ecosystem will enjoy this product as the STX/stSTX stableswap trading pair will provide supplemental functionality while giving Stackers a route to harvest additional StackingDAO points. Thanks to its lucrative rewards, it will provide sufficient liquidity for institutional investors who need the ability to perform efficient, large-scale STX/stSTX swaps.
Velar has emerged as the biggest DEX on Stacks, while StackingDAO enjoys a special status as its number one Liquid Stacking protocol, making STX staking accessible to anyone while unlocking liquidity for Stacked STX.
While commenting on this partnership, Philip de Smedt, Co-founder of StackingDAO, said,
"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.”
Velar’s CMO, Peter Watson, added that,
"At Velar, we’re constantly driving innovation, and partnering with StackingDAO to build the first-of-its-kind stableswap pool with an upgradeable variable midpoint is a proud moment for us. This feature, designed to better protect liquidity providers, showcases the cutting-edge solutions we’re bringing to the Stacks ecosystem. Collaborating with the talented StackingDAO team has been an incredible experience, and together, we’re setting a new benchmark for what’s possible in Bitcoin DeFi."
Velar aims to unlock Bitcoin’s true potential by developing a suite of powerful tools and products for DeFi. Dharma is Velar’s AMM that incentivizes liquidity provision and trading on Stacks, the leading Bitcoin L2. Velar realizes the full value of Bitcoin-based assets within an ecosystem anchored by strong transaction finality and unrivaled security.
