One of the most commonly faced issues with DeFi 2.0 is liquidity locking. The current chain usually involves a process wherein there is an asset for which a liquidity pair (LP token) is formed, and the LP token is then staked in a yield aggregator. Around this point, the investor’s only option with the locked-up funds is to change the entire strategy, which can understandably be very frustrating and time-consuming.
What’s the solution?
OneStake operates differently and actively addresses the aforementioned issue. This is because Aave’s unrivalled aToken mechanisms are used by OneStake, and this mechanism of interest-bearing tokens has proven to be quite effective in solving the major issues often associated with gas fees. A OneStake user would hence simply stake one of the stablecoins into the stable pool in exchange for an iUSD token.
iUSD collateral is utilized in whitelisted protocols like Convex, Yearn, Vesper, among various others. The automated rebalancing method selects the best protocol with the greatest yield and converts collateral into a whitelisted stablecoin, which is then transferred to the pool with the greatest APR at the time of rebalancing.
For instance, iUSD is made up of MIM that is invested in the MIMCRV pool with a 16.86% APR. During the rebalancing process, OneStake discovers another pool with a higher APR, FraxCRV pool, with 21.5% APR. By utilizing Curve Finance, OneStake rebalances and swaps MIM in FRAX. OneStake then builds FraxCRV and stakes it on Convex. Following this rebalance, iUSD now has the greatest APR and is backed by whitelisted stablecoins, FRAX and 3CRV.
Seed round now open
As of now, the Seed Round has been opened for private investors and shall close in early April. The $600,000 Seed Round is thus currently accessible and the highest APR shall be delivered directly to the users’ pocketbook.
Additionally, the MVP is also in the works and will be released in June. Furthermore, Lightning Launchpad is OneStake’s partner and shall provide assistance in conducting the initial fundraising round.
About OneStake
OneStake Finance is the next-generation DeFi 2.0 protocol which overcomes real-world yield protocol difficulties. It strives to be the most efficient method for staking stable and single assets and provides the best APR.
From researching new secure high APR methods to rebalancing and reinvesting gains, OneStake addresses every challenge for the typical or professional DeFi user. The DAO is actively whitelisting the protocols and assets with which OneStake will interface. Each group’s assets are also combined into a single pool. As a result, the protocol will support three pools: stablecoin, Bitcoin (BTC), and Ethereum (ETH).
Additionally, every pool will include a quantity of whitelisted tokens that fulfill the group’s criteria. Investing in a pool allows a user to deposit funds into the protocol in any asset included in the pool, and the protocol will then generate swaps for the chosen form of stablecoin or wrap-token, which the strategy is presently utilizing.
OneStake monitors the current APR for every asset of all whitelisted protocols on a four-hour basis. The protocol calculates capital allocation in such a way that the maximum APR is obtained. It is accomplished by modeling the resulting APR while accounting for the impact of greater investment in provider pools. After determining the most effective distribution, the rebalancing costs are computed. If the cost of rebalancing exceeds the critical value, the effective distribution must be recalculated. If the cost of rebalancing is within acceptable bounds, the rebalancing process can commence. Finally the protocol also receives staking rewards every 2 hours unless it reinvests, sells, and reinvests them back into the pools.
For more information, visit the official website and Twitter, Telegram and Medium channels.
Source: https://crypto.news/onestake-finance-looks-to-solve-defi-2-0-liquidity-locking-problems-as-seed-round-officially-commences/