Stella
  • Overview
    • 🌠Getting Started
  • STELLA TRADE
    • 🌐Overview
    • 📚Perpetual Futures 101
  • 🏗️Architecture
  • 🔮Price oracles
  • ⚠️Liquidations
  • ⚙️Platform Specifications
  • 🔌Integration Guide
  • STELLA YIELD
    • ❓How Stella Works?
    • 🤝Pay-As-You-Earn (PAYE) Model
    • 🚀Stella Strategy
      • Why Stella Strategy is Unique?
      • Strategy Type
      • Asset Type
      • Strategy Exposure
      • Collateral Factor
      • Borrow Factor
      • Credits
      • Price Range & Liquidity Shape
      • Liquidation
        • Liquidation Discount
        • Post-Liquidation Value
        • Pendle/Penpie Liquidation Price
      • Price Impact
      • Leverage
      • Supported Strategies
    • 🏦Stella Lend
      • Why Stella Lend is Unique?
      • Pool Type
      • Supported Assets
      • Yield Vault
      • Withdrawal Delay
    • 💰Yield Calculation
      • PAYE Graph
      • Yield Sharing
    • ⚠️Risk Framework
      • Precautionary Measures
      • Slow Mode
  • App Guide: Stella Yield
    • Walkthrough Stella APP
    • Open a position
    • Close a Position
    • View Your Position
    • Add/Remove Extra Collateral
    • Claim Assets from Liquidated Position
    • Deposit & Withdraw Assets
  • Developers
    • 📃Contract Addresses
      • Core
      • Stella Strategy
      • Stella Lend
      • Oracle
    • 📜Contract ABI
    • ⚙️API
  • Tokenomics
    • 🎯ALPHA Token
    • ⚡Staking & Protocol Fees
    • 👥Token Distribution
  • Additional Information
    • 🟠About Stella
    • 🔎Audit Reports
    • 📣Community Links
    • 📸Media Kit
    • ❔FAQ
    • 📖Terms of Use
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  1. STELLA YIELD
  2. Stella Strategy

Why Stella Strategy is Unique?

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Last updated 1 year ago

🧧 Leverage with 0% Cost to Borrow

Stella Strategy empowers leveragoors by enabling them to borrow supported assets from Stella Lend to execute DeFi strategies with a bigger position at a 0% borrowing cost. This effectively eliminates the problem of high borrow interest rates associated with the previous lending model during periods of high utilization. Leveragoors can have peace of mind knowing that borrowing costs will never surpass the yields generated from their strategies.

🏄🏼‍♂️ Pay-As-You-Earn (PAYE) Model: “No Gain, No Pay” Motto

Unlike the traditional accruing borrow interest model, Stella's PAYE model requires leveragoors (borrowers) to share their strategy yields with lenders. If leveragoors do not generate profits, they are only responsible for repaying the borrowed amount (their debts) without any additional payments. In simpler terms, it follows the principle of "No gain, no pay!"

Additionally, Stella's model is designed to reduce the percentage cut deducted as leveragoors generate more yields. This creates a mutually beneficial arrangement where lenders will benefit as leveragoors gain more from their positions.

🛍 Multiple Selections of Leveraged Strategies

Stella strives to serve as the gateway for users to access a wide range of leveraged strategies by prioritizing quick responsiveness to meet the evolving needs of users, especially in the DeFi world. With varying levels of knowledge and backgrounds, users will find a leveraged strategy in DeFi that aligns with their individual approaches.

🛡️100% Safe Undercollateralized Loans

One of the key features of Stella Strategy is its ability to achieve undercollateralized loans and increase the capital efficiency. This is made possible by using the LP Token of the position as collateral within its contract. By doing so, Stella Strategy effectively protects itself from potential losses due to underwater positions and minimizes the risk of bad debt.

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