Introducing: StellARB Incentive Rush — The Perfect Place For Yield Earning During ARB SZN
TLDR: Stella has received 186k ARB tokens as a part of the ARB STIP, in which it will be distributed between Stella Strategy and Stella Lend.
- Stella Strategy will have 66k ARB deployed on and can expect 20% extra rewards on top of the earned yield for profitable positions.
- Stella Lend will have 120k ARB deployed on and can expect an estimate of 8% to 12% lending APR on USDC.e and ETH with 3% to 7% as real yield.
- In addition to Stella’s increased yield, Stella’s integration partners have also passed for the grant, which directly translates to higher yield on their side as well. Using them through Stella would mean you are accumulating yield on top of yield on top of more yield!
The Arbitrum Short Term Incentive Program (STIP) voting has recently concluded, and you should know what’s coming. It’s ARB yield season!
A selected batch of protocols are chosen to receive some ARB from the Arbitrum STIP, and Stella is one of them. Although it’s raining ARB in many places, you should read on to find out why this is the perfect season for yield farming, why Stella is the best place to accumulate your ARB in this season, and what to expect from Stella.
Tis’ The Season
Why yield farming now? With ARB STIP having recently concluded, you can expect the batch of protocols that received the STIP to have an increase in yield — including Stella!
Stella has just passed the Arbitrum STIP with over 174m “For” votes, meaning Stella will be receiving the 186k ARB from Arbitrum. This means, during the period of the STIP, you are able to earn more yield in ARB tokens.
So what kind of actions can you take to accumulate those yields and make the most out of this season? Yield farming and providing liquidity.
And where best to do that?
In Stella, of course.
Expect Higher Yields in Stella Strategy and Stella Lend
Stella’s ARB STIP will be distributed between Stella Strategy and Stella Lend, meaning that the yield from Stella as a whole will be expected to increase. The distribution is as follows:
Stella Strategy — 66k ARB
Leveragoors are able to access even higher yield and capital efficiency from leveraging on Stella
Stella will be providing 20% extra rewards for Leveragoors on top of their yield for their profitable positions, similar to the Leveragoor Incentive Program
For example, you open a Hyper-Strategy Leveraged LST Pendle position worth $1,000. You earn 40% yield upon closing the position, so your position value becomes $1,400, generating $400 in yield.
The 20% extra rewards on top will be calculated as $400*0.2 = $80 worth of ARB on top of your earned yield.
Stella Lend — 120k ARB
As Stella aims to bring more lending liquidity for leverage activities, you can expect about 8% to 12% lending APR on USDC and ETH (using 3% to 7% as a real yield). This is single-sided lending, capital protection with no impermanent loss.
The incentives will be distributed on a per dollar basis, and since we expect the TVL on ETH and USDC.e pools to be higher, we also expect a larger proportion of incentives going towards those assets.
Lenders can get boosted APY from 2 sources:
- The yield shared
With the increase in yield from Leveragoors, Lenders will naturally be shared more yield resulting in higher lending yield.
- Incentive rewards
Lenders will also be receiving the ARB token incentives from the lending pools, which will further boost their yield.
Hence, with Stella, you are essentially hitting two birds with one stone by stacking yield on top of yield to earn the highest yields with the highest capital efficiency!
Stacking Yield On Top Of Yield With Stella
Seems pretty straightforward right? But it gets better.
Our integration partner, Pendle, has also passed the STIP grant. This means that Pendle will also be distributing ARB on their liquidity pools, which results in an increase in the yield on Pendle.
As Stella has integrated Pendle’s liquidity pool, users of Stella can open leveraged positions on Pendle’s liquidity pools, which means that they will earn Pendle’s yield, that is boosted with ARB on Pendle, that is boosted with leverage on Stella, that is further boosted with ARB yield on Stella!
Trader Joe, our integration partner and also a grantee of the ARB STIP, and Pendle will incentivize market makers AKA liquidity providers with ARB tokens, further amplifying your yield on Stella.
- Non-stable pairs: Trader Joe
- Stable pairs: Pendle
You’re basically getting your yield boosted 3 levels with Stella
- Boosted yield from integration partners
- Boosted yield from leverage on Stella
- Boosted yield from StellARB
There is no better time than this.
ARB Incentive Distribution Method
The ARB STIP received from Arbitrum Foundation will be received and deposited into Stella’s ARB lending pool to be distributed to the users.
It means that the ARB tokens for lenders and Leveragoors will be in ysARB, which is an interest-bearing version of the ARB lending pool on Stella. The value of ysARB will increase based on the yield shared by Leveragoors with the ARB lending pool.
The period of distribution will be separated into epochs, in which each epoch will last for 2 weeks.
During each epoch, users can open leveraged strategies and/or lend to accumulate their ARB. The ARB will initially be distributed as ysARB, which represents a receipt of the deposited ARB in the lending pool. Once each epoch ends, the ARB will be vested linearly for 30 days independently for each epoch, and will be claimable constantly after unlock.
For example, in Epoch 1 (Nov 1 — Nov 14), Alice lends and generates yield from their leveraged positions, generating $80 worth of $ARB in extra rewards.
During this epoch, Alice won’t be allowed to withdraw the ARB tokens. Alice will be able to withdraw ARB in the linear vesting term, starting at the end of the epoch from Nov 14 to Dec 14 (30-day period).
In the system, Alice literally owns ysARB, the interest-bearing token of ARB in the lending pool. It increases in value as time passes.
Any unclaimed ARB tokens will be returned to the Arbitrum Foundation by March 31, 2024.
Be Prepared
STIP distribution is starting soon. Be sure to brace yourselves and keep leveraging to ensure you secure yourselves some high yields this season.
As they say, Tis’ the season to earn high yields, and there is no better place than at Stella!
About Stella Core Development Team
Previously as Alpha Finance Lab and Alpha Venture DAO, Stella core development team has pioneered in ‘leveraged DeFi’ since 2020. These developments include building the Alpha Homora, that has a peak TVL of $1.9B, first leveraged yield farming protocol, coming up and implementing key fundamental concepts such as tokenization and collateralization of LP tokens, and incubating a number of DeFi projects that went on to raise from top-tier VCs and list on tier-1 exchanges.
Under the new name (Stella) and the same token (ALPHA), the same core development team aims to double down on expertise in building an on-chain leveraged product. With Stella protocol that enables Leveragoors to take leverage on various DeFi strategies with 0% cost to borrow and lenders to earn real yields without a maximum cap on lending APY, Stella aims to unlock highest yield potentials for DeFi users in this moderately low yield DeFi market.
