Built initially on Ethereum and Binance Smart Chain, Stella is expanding cross-chain to provide users with optimized yield farming, lending pools, and leveraged yield strategies.
Today, we will cover the following topics:
- About Stella
- How does Stella work?
- Key Features
- Technical Analysis
- Why is ALPHA The Coin of the Week?
About Stella (ALPHA)
What is Stella?
Stella, previously Alpha Venture DAO, operates as a pioneering leveraged strategy protocol on Arbitrum, facilitating zero-interest borrowing for users aiming to amplify returns on supported DeFi strategies.
Borrowers, or “leveragoors,” utilize these leveraged positions without paying borrowing fees, while lenders benefit from APY yields tied directly to leveraged gains.
The innovative "Pay-As-You-Earn" (PAYE) approach enables a win-win scenario where lenders' earnings align with leveragoors' performance, enhancing return potential on safe, protocol-backed strategies.
Stella extends its utility by supporting new Web3 projects, fostering community involvement, and promoting a decentralized governance model.
Dig deeper into Stella whitepaper.
ALPHA Token
Utility of ALPHA in the Protocol
ALPHA token holders can stake their assets to secure the protocol, participate in governance, and earn rewards derived from ecosystem activities.
Staking & Earnings
Staking rewards include protocol fees from leveraged strategies, revenue sharing, and a portion of profits generated by users employing leverage within Stella’s ecosystem.
Governance & Launchpad Access
ALPHA stakers gain early access to high-quality project launches, vote on key proposals, and influence decisions that impact the future of Stella.
Allocation Breakdown
Ecosystem Initiatives: 36.67%
Liquidity Mining: 20%
Team & Advisors: 15%
Private Sale: 13.33%
Binance Launchpad: 10%
Binance Launchpool: 5%
How does Stella work?
Stella’s Pay-As-You-Earn (PAYE) model reshapes leveraged DeFi by removing upfront borrowing costs and allowing lenders to earn a share of leveraged returns. This model aligns incentives, enhancing yield potential without incurring interest fees at the outset.
Stella Strategy
Stella Strategy provides access to various leveraged DeFi options without borrowing costs. Users close profitable positions and share returns with lenders, promoting a performance-based approach.
The recent Hypernova upgrade brings new strategy options: Hyper for higher-risk, higher-reward protocols, and Standard for steady, conservative returns, catering to diverse yield goals.
Stella Lend
Stella Lend enables asset lending, yielding returns from Stella’s leveraged strategies. Integrated into the PAYE model, it eliminates APY caps, rewarding lenders from successful leveraged positions.
Lenders can choose between Hyper and Standard lending pools, matching their risk preference.
Key Features and Use Cases
Zero-Cost Leveraged Yield Farming
Users can boost their returns by leveraging yield farming positions at no borrowing cost, allowing for higher yields without the traditional burden of interest fees.
Dynamic Lender Earnings
Lenders earn a share of borrower-generated profits through Stella’s unique Pay-As-You-Earn model, creating an efficient system where lender income scales with borrower success.
Flexible Risk Options
With both Hyper and Standard lending pools, Stella caters to a range of risk appetites—offering stable returns through established assets or higher yields with trending assets.
Advanced Security & Governance for Stakers
Staking ALPHA enhances protocol security while giving stakers voting power in protocol decisions, aligning interests through automatic reward compounding.
Multi-Chain Access & Yield Opportunities
ALPHA’s utility spans multiple blockchains, enabling participation in Stella’s offerings on Ethereum, BNB Smart Chain, Avalanche, and Arbitrum, maximizing earning potential across ecosystems.
Technical Analysis
According to our last ALPHA technical analysis, it has been in a correction phase after surging around 150% last month.
ALPHA is currently retesting a significant demand zone marked in blue.
For the bulls to take control and initiate the next bullish wave, a break above the red wedge pattern and the $0.067 major high is needed.
Why is ALPHA The Coin of the Week?
ALPHA is Coin of the Week due to its recent rebranding to Stella, a strategic move that sharpens its focus on leveraged DeFi.
With innovative features like 0% borrowing costs and a Pay-As-You-Earn model, ALPHA is setting new standards in DeFi by aligning lender and borrower incentives.
From a price action point of view, ALPHA is currently trading at a discount within a massive demand zone providing us with an opportunity to buy its dip.
Explore our other Coin of the Week editions for more unique insights and exceptional projects!
Thanks for tuning in to this week's coin of the week! We appreciate your readership and enthusiasm for exploring the crypto landscape with us.
See you next week for another coin of the week! 🚀
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