LFG Introduction: stabble - Solana's first frictionless liquidity layer

jupiter integration would be one of the big steps :fire:. And i hope that we see the first onbarded projects within the next months too.

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Thanks a lot! :star_struck: The props should go to Keisuke and Lennart for that.
Let me share their descriptions here again:

Keisuke, CTO: Keisuke, the CTO of stabble, boasts an impressive background in software development with over ten years of experience. As the former Engineer at Marinade Finance, which reached a peak of $1.8+ billion TVL, and the former CTO of One Ring Finance, he has demonstrated the ability to develop and manage complex decentralized financial platforms. With a B.Sc. in Software Engineering, Keisuke has the technical expertise and industry knowledge required to steer stabble towards groundbreaking innovation. X: @kAsky53; Github: kAsky53; Discord: kasky53

Lennart, CPO: Lennart, the CPO at stabble, is a seasoned Research Scientist and Ph.D. candidate in Finance, specializing in Behavioral Finance and DeFi Inefficiencies at the Otto-von-Guericke-University Magdeburg. His unique insights into the world of decentralized finance, combined with his dedication to studying and understanding the intricacies of DeFi efficiency, make him the ideal candidate to help stabble revolutionize the DeFi landscape and create a more efficient and user-friendly platform for all. LinkedIn: @lennart-schwert-a33aaaa0

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Thanks a lot! We will do it for sure, it’s such a great event. Extremely good for networking and talking about products.

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Indeed! We just deployed our core protocol on mainnet today (closed version). The next step will be the Jupiter integration. Check out our announcement: x.com

The good thing here is that we will be live and integrated into Jupiter before the LFG vote and TGE, as well as the official mainnet launch. That’s crazy…

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I have been waiting for this integration for a long time. Simply a super clever idea that brings great benefits to the entire Solana ecosystem.

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These are some amazing updates!

I have one question regarding the integration into jupiter. You mentioned before that this would give jupiter the chance to give better prices to users, and it would give stabble more volume.
Does this mean that the volume that jupiter currently has (around 1 billion daily) will be the volume of stabble?
And if yes, is this volume applicable to the staking pool fees and arbitration pool fees?
This is how I imagine the integration would turn out by reading what you have explained until now. Could you maybe explain this a bit more about this?

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I don’t know how it will be but 100% it will not be like that, Stabble will have separate pools as far as I understand

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Sure, let me explain it to you in more detail.

Yes, it does give stabble more volume, but not all of Jupiter’s volume, it will be only a fraction. The fraction depends on the attractiveness of the price that our pools offer. It’s hard to estimate how much volume we will generate exactly but I am sure that a bit of that $1b volume will reach us as we have one of the fairest market prices available.

And yes, that fractional volume and the thus generated fees will also be directed to the staking pool.

I hope that answers your questions. Let me know if not.

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Yes, you explained it clear enough, thanks!
We will just have to wait and see what the volume will be!

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Looking forward to the TGE! This is an absolute necessity to the Solana ecosystem! Props to the team and the community!

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Great, We need more infra projects on Solana not only meme tokens

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So interesting. Good luck

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gm, I have some updates to share!

We achieved a few great things this week.

  1. We launched on mainnet (closed) and tested our protocol.
  2. We added a TVL of $500k+, one of Jupiters integration requirements.
  3. We got integrated into DefiLlama: https://defillama.com/protocol/stabble

The next steps are:

  1. The Jupiter integration
  2. Public mainnet launch: June 28, 01:00 PM UTC
  3. Jupiter LFG vote: TBA

For those who have been wondering how competitive we will be on mainnet:

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Wow, moving fast, eh?

Very nice progression update!

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Jep, we’re moving insanely fast now and won’t stop anytime soon :wink:

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Hello Kilian, thank you for all the updates!

Where can we find the ama session from today?

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Here you go

Crypto Soka (NEVER DM first):
Ok, Community
Today we welcome the Founder & CEO at Stabble — Kilian Krings (@kiliandefi) :rocket:

kiliandefi [stabble] → Solana IslandDAO:
Thanks a lot for inviting me today @cryptosoka! And thanks for everyone joining here :pray:

Crypto Soka (NEVER DM first):
I’ll have some questions for Kilian. After that, he will answer 5 questions from you (all previously chosen) :smirk:

Let’s get started!

@kiliandefi can you give examples of how impermanent loss has affected users on DEXs and how the Stabble protocol solves these issues?

kiliandefi [stabble] → Solana IslandDAO:
Sure, there are research papers that state that 43% of Uniswaps TVL is exposed to IL. If you translate that, this means that almost half of all pools are performing worse than just holding LP assets in a safe hardware wallet. As there is no solution to eliminate IL due to the fact how the mathematical concept of liquidity pools work, there are three things you can do:

  1. Increase the capital efficiency of the pools:
    We are doing this by implementing a new type of liquidity - margin liquidity. Think of a margin trade, but translate that to liquidity. In that case, you leverage your LP assets and provide a few times the amount of liquidity and generate more APY on the leveraged amount of liquidity.
  2. Manage liquidity more efficiently across all pools:
    Our smart liquidity routing tool allows users to deposit liquidity to multiple pools at the same time. The protocol will manage and rebalance that liquidity across the pre-selected pool based on the highest APY.
  3. Diversify your liquidity across other pools:
    At stabble, we have smart liquidity arbitrage pools. These pools allow liquidity providers to participate in different arbitrage strategies across our protocol and other major DEXs within the Solana ecosystem. This tool is a great opportunity to generate additional yield and to hedge your LP positions against IL.

Crypto Soka (NEVER DM first):
And what are the primary inefficiencies in current DEXs that lead to Total Value Locked (TVL) losses? And how does Stabble Protocol’s approach differ from traditional DEXs in preventing these inefficiencies and losses?

kiliandefi [stabble] → Solana IslandDAO:
Most DEXs, no matter if EVM or Solana-based ones, lose around 27% of their TVL per year due to external and opportunistic arbitrage traders. We solve this problem by implementing our own arbitrage strategies and pools that execute swaps between our protocol and other major DEXs within the Solana ecosystem. We try to keep these 27% in our ecosystem and to give them back to our users. This is a huge opportunity for our users to generate high yields.

Crypto Soka (NEVER DM first):
How does your arbitrage mechanism work, and how does it impact maintaining stable liquidity & prices?

kiliandefi [stabble] → Solana IslandDAO:
Our arbitrage bots monitor the prices on our protocol, as well as other protocols, e.g. Raydium and Orca. If our prices are different from the average prices of Raydium or Orca, we will initiate a trade to eliminate that difference. The generated profit will then be distributed to our arbitrage liquidity providers. This feature always ensures that we always offer the fairest market prices for all assets.

Crypto Soka (NEVER DM first):
What are the different types of liquidity pools available on Stabble Protocol, and how do they work?

kiliandefi [stabble] → Solana IslandDAO:
We have two types of liquidity:

Concentrated liquidity: This works in a way that liquidity providers can set ranges for the prices where they will provide liquidity. This was invented by Uniswap a few years ago.

Margin liquidity: Think of a margin trade, but translate that to liquidity. In that case, you leverage your LP assets and provide a few times the amount of liquidity, and generate more APY on the leveraged amount of liquidity.

Crypto Soka (NEVER DM first):
Kilian, can you describe the staking pool and its benefits for users within the Stabble ecosystem? :eyes:

kiliandefi [stabble] → Solana IslandDAO:
Sure, our staking pool will receive 14% of all generated fees. The fee sources are our liquidity pools, but also our arbitrage pools. The remaining 86% will go to our liquidity providers. Our staking program is perfect for everyone who is seeking passive income.

Crypto Soka (NEVER DM first):
How does DAO governance play a role in the Stabble Protocol, and what decisions are community-driven? :thinking:

kiliandefi [stabble] → Solana IslandDAO:
In the long run, the whole protocol will be governed by the stable DAO. Important decisions like fee distributions, fee percentages, protocol changes, or updates will all be governed by the stable DAO. The team won’t have any influence over these decisions.

Crypto Soka (NEVER DM first):
Let’s talk about Solana :raised_hands:

How does Stabble Protocol integrate with the broader Solana DeFi ecosystem?

As a decentralized exchange within the Solana ecosystem, we know that one of the most important integrations is the one at Jupiter. From the beginning of development, we have built an infrastructure that is easily integrated into the Jupiter aggregator.
All Jupiter users will be able to utilize our pools in order to execute their trades, as we are contributing to the depth of Jupiter’s liquidity sources.
Due to our cross-exchange arbitrage pools, we not only introduce a new type of yield generation to liquidity providers, but we also contribute to the price stability and liquidity exchange across all major Solana-based decentralized exchanges. This results in overall better price stability as well as better liquidity utilization. Our ultimate goal here is to make our ecosystem less attractive to opportunistic traders, aka the arbitrage traders, but instead, we want to keep that value in the Solana ecosystem by giving it to the people where it belongs - the liquidity providers, thus our community.

Crypto Soka (NEVER DM first):
What role does the Solana community play in the development and success of the Stabble Protocol? :eyes:

kiliandefi [stabble] → Solana IslandDAO:
We’re an active part of the Solana community and contribute in various forms, like hosting meetups, being active in education, help onboard new community members, …

We have a very extensive exchange with our community which consists of a lot of Solana community members. They actively help us by giving product or strategy-related feedback. We always listen to it, as this is one of the most important rules: Build a product that your community wants.

Crypto Soka (NEVER DM first):
What about the plans for Stabble Protocol? New features, partnerships, and expansion?

kiliandefi [stabble] → Solana IslandDAO:
We have a lot of great things lined up for the next few weeks.

We launched on Solana Mainnet a few days ago and are testing our protocol (closed testing) as well as managing the Jupiter integration.

On the other hand, we’re also applying for the Jupiter LFG launchpad. This is a great opportunity for us as their users are potentially our users, they are valued at over $10b and have a voting power of around $250m for the LFG votes. Making that happen is one of our top priorities.

Crypto Soka (NEVER DM first):
Kilian, what about important dates and events like airdrops, TGE, etc.?

kiliandefi [stabble] → Solana IslandDAO:
Sure, we have one important date: We will launch our protocol on mainnet to the public on June 28 at 01:00 PM UTC. Also make sure to follow our socials to not miss the TGE (soon!) or our Saga Phone 2 airdrop. Simply get the nex Solana phone and receive our massive airdrop.

Crypto Soka (NEVER DM first):
Now we’re moving to the questions from the Community :fire:

Ok, I see you chose…

@uyenlunan:
Given that Stabble aims to revolutionize DeFi by tackling impermanent loss, low APYs, and high price impacts, can you detail the unique features and innovations that set Stabble apart from other DeFi protocols? How do these features address the common pain points faced by DeFi users?

kiliandefi [stabble] → Solana IslandDAO:
Hey @uyenlunan, thanks for your question.

Here you go with our core UPS and main features:

Frictionless swap experience: stabble offers a truly frictionless protocol where traders benefit from near-zero (maximum of 0.2%) price impacts, allowing for seamless execution of trades. stabble achieves this by executing fractionalized orders.

Protocol-managed liquidity: stabble’s approach to liquidity management is a game-changer. By implementing protocol-managed liquidity, stabble reduces impermanent loss risks and maximizes APY for liquidity providers. This unique feature ensures that liquidity providers can enjoy higher returns compared to other protocols but also contributes to price stability by reducing price impacts.

Cross-exchange arbitrage pools: A unique combination of arbitrage strategies on the one hand allows stabble to offer more efficient prices for traders and on the other hand to exclude external arbitrage traders. This innovative approach greatly reduces impermanent loss risks for liquidity providers while boosting their APY.

Unique token design: stabble has its native token, $STB, which offers various benefits to token holders. Staking $STB tokens allow users to earn rewards, while locked $STB tokens are converted into veSTB tokens, which enable governance and fee discounts. Depending on the lockup period, the receiving veSTB amount follows a multiplier which means the staking APY and voting power can reach up to 4.32x. This unique token economy fosters long-term engagement and participation in the protocol’s governance and reduces sell pressure.

Margin liquidity: stabble uses margin liquidity, which is over 8,000 times more capital efficient than Uniswap’s V3 concentrated liquidity.

Crypto Soka (NEVER DM first):
@Jefffel_fire:
As Stabble prepares for its mainnet launch, what are the anticipated timelines and on which networks will Stabble initially be deployed?

kiliandefi [stabble] → Solana IslandDAO:
Hey @Jefffel_fire, thanks for your question!

Our mainnet launch is scheduled for June 28 at 01:00 PM UTC. The liquidity will be deployed on Solana, as of today we already have over $500,000 TVL (pre-launch), you can check it out here: https://defillama.com/protocol/stabble#information

Please give it some time until the TVL is properly tracked on DefiLlama!

Crypto Soka (NEVER DM first):
@dmanh55:
With the $STB token offering yield farming and governance opportunities, what are the benefits of converting $STB to veSTB for staking rewards and APY multipliers? How does the governance model empower veSTB holders to influence the protocol’s development and operations?

kiliandefi [stabble] → Solana IslandDAO:
That’s a good question. If you lock our $STB token between 1 and 30 months, you will receive veSTB tokens. Your amount of veSTB tokens will be determined by a multiplier (up to 4.3x for 30 months). This means you position in the staking and also governance pools will be way higher, thus you will receive a higher APY and have more voting power. In the long run, the whole protocol will be governed by the stable DAO. Important decisions like fee distributions, fee percentages, protocol changes or updates will all be governed by the stable DAO. The team won’t have any influence over these decisions.

Crypto Soka (NEVER DM first):
@ShaundaRobson:
With the significant growth in your social media and community engagement, what role do you see your community playing in Stabble’s ongoing development and success? How do you plan to involve and empower your community members in decision-making processes and future project initiatives?

kiliandefi [stabble] → Solana IslandDAO:
Thanks for your question @ShaundaRobson :pray:
We empower all community members to become active members, we listen to everyone and read every email. Everyone is welcome to join our Discord (stabble) or to send us an email to gm@stabble.org. We will listen as we’re building the protocol for you and not for us. Later on, feel free to join our DAO and become even more involved.

Crypto Soka (NEVER DM first):
@NickoleGorham:
Low APYs for liquidity providers are a common challenge in DeFi, What strategies does Stabble implement to ensure competitive APYs and attractive returns for its liquidity providers?

kiliandefi [stabble] → Solana IslandDAO:
Always a good question @NickoleGorham!

We have a couple of things here:
First of all, besides concentrated liquidity, we also offer margin liquidity (leveraged LP positions). Margin liquidity increases the capital efficiency and delivers a higher APY for liquidity providers.
Secondly, we offer our smart liquidity arbitrage pools, which are a completely new opportunity to generate yield for liquidity providers. We’re expecting the additional yield to be around as high as 20% of the protocol’s TVL per year.

Crypto Soka (NEVER DM first):
Ok, that’s it! :fire:

@kiliandefi thank you for having time today :black_heart:

kiliandefi [stabble] → Solana IslandDAO:
Thank you @cryptosoka for hosting me today! and a hige thanks to your community for joining :fire::pray: Stay tuned, we have great news alost every day!

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How much do you think we can earn if we provide liquidity. Do you have any numbers?

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There is no exact number. I then calculated for my amount that I would send for staking and provide liquidity. It all depends on how much liquidity you provide or how much staking you use. The most important thing is the trading volume, the lower the swap commission, the more people come to trade = more volume = more commission from trades = more earnings for liquidity and staking providers = more users/liquidity providers and so on in a circle. Liquidity providers will receive 86%, staking participants will receive 14% of trading commissions.

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Staking pool will receive 14% of all generated fees. The fee sources are the liquidity pools, but also the arbitrage pools. The remaining 86% will go to our liquidity providers. The staking program is perfect for everyone who is seeking passive income.

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