What is a stablecoin?

- A stablecoin is a digital currency that is pegged to a “stable” reserve asset such as the USD. Stablecoins act as a crypto-equivalent to fiat currencies which by nature should be able to reliably hold value without volatility.
- Stablecoins are open, global, accessible to anyone on the Internet, they are fast, low-fee, secure, digitally native to the Internet and programmable.
- Types of stablecoins include: stablecoins with fiat currencies or cash reserves backing them such as USDT, TUSD, USDC, BUSD, stablecoins with cryptocurrencies as collateral such as Dai and stablecoins backed by seigniorage.
- Cryptocurrencies are highly volatile and risky to interact with on a daily basis. Stablecoins solve this problem with cryptocurrencies by bundling and pegging the value of the currency around a specific fiat currency.
- In addition, there is potential legal risks associated with exchanging fiat currencies directly for cryptocurrencies, so stablecoins act as an intermediary to facilitate this procedure.

Importance of stablecoins

1 They create a bridge between traditional finance and decentralized finance.
2 They help investors avoid the risks posed by cryptocurrency volatility. An asset pegged to a more stable currency can give buyers and sellers the confidence that the value of their tokens will not go up or crash unpredictably in the near future.
3 They serve as a stable medium of payment to purchase other digital assets, NFTs, platform memberships, etc.
4 They serve as a stable investment vehicle for investors to earn yield. There are some simple ways to earn interest above what banks offer by putting one’s stablecoins to work
5 They serve as a tool to fight against hyperinflation which is a major problem in some countries. Investors in some of these countries can convert their local currencies to stablecoins pegged to other foreign currencies like the dollar or euro.
6 They facilitate borderless transactions while maintaining their value.

The role of Sirius Finance on Astar network

- Currently on the Astar network, there is a lack of deep liquidity to address volatility and yield farming opportunities for most stablecoin holders and the lack of a DEX for stablecoins limits arbitrage opportunities. The need to transact between different and large amounts of stablecoins on Astar network creates the need for a stable and secure AMM — -Sirius Finance.
- Low Slippage Stablecoin AMM: resulting in a better price for bigger volumes. If one wants to perform significant volume trades, one needs better liquidity which ensures less or low slippage. Sirius Finance’s formula is designed to minimize slippage as much as possible. This leads to extremely low slippage for even large amounts of trades. In fact, the spread on Sirius Finance can meaningfully compete with some of the centralized exchanges and OTC desks with the best liquidity.
- Reducing impermanent losses: impermanent loss occurs as a result of depositing two cryptocurrencies into the liquidity pool of an automated market maker (AMM) and withdrawing them at a later time with a difference in value, less than you would get if you held the coins in your wallet. However, if both cryptocurrencies are stable coins, the impact of impermanent loss can be minimized.

About Sirius Finance

- Sirius Finance is the first Polkadot-native stablecoin AMM on Astar Network. Our mission is to provide a stable, highly liquid trading platform for stablecoins, deep liquidity for connected protocols, attract and lock tremendous value to facilitate more innovations and collaborations for Astar and Polkadot.

Join Sirius Finance by joining Twitter, Discord and Telegram now :

* Official website : Sirius.Finance
* Twitter : @Sirius_Finance
* Telegram :@Siriusfinanceofficial
* Medium : @Siriusfinance

Why SIRIUS FINANCE ?

- Sirius Finance is a cross-chain stablecoin AMM, attracting and locking tremendous value with low-slippage trading costs, attractive APY for LPs on Astar Network, allowing for more financial innovations & yield enhancements for Astar users.
- Ultimately, it serves as a low-slippage swap protocol connecting Polkadot, EVM-compatible chains and other major layer1 chains, expanding use cases from stablecoins to other similar valuable tokens.

What is stablecoin AMM ?

- In the Cryptocurrency ecosystem, most AMMs such as Uniswap, Pancakeswap, etc. use this protocol and allow almost all types of assets to be added to their liquidity pools and traded. A Stablecoin AMM which Sirius Finance is building focuses solely on stablecoins, that is to say, only stablecoins like USDC, USDT, etc. can be added to liquidity pools and also traded on this type of AMM.

Why on Astar Network ?

- Astar is the best fit due to its cross-chain nature and ambition of being the central dapp hub on Polkadot. This allows Sirius Finance to have access to a great variety of stablecoins, not only on Astar, but also on polkadot, or even other chains, to increase liquidity, improve TVL and increase trading options. This great variety further encourages decentralization of our protocol since we can have a number of pools competing for a higher APY.
- Secondly, Astar is building massive native defi protocols, like algorithm-based stablecoins, lending and yield aggregators. This is in sharp contrast with other parachains. These native protocols would work closely with Sirius Finance to enhance yield for liquidity providers.

Sirius Finance pools and algorithm

*Sirius stable pool :
- The Sirius Finance stable pool consists of 4 tokens — DAI, USDC, USDT and BUSD. The distribution of tokens within the pool is not always equal, as traders trade against the pool, it adds and removes tokens in the pool, changing the amount of pool tokens and their weights.
- To incentivize traders to balance the stable pool’s composition, Sirius Finance applies deposit bonus and withdrawal penalty as the pool tries to balance itself back into equal weights.
*Sirius meta pool :
- Meta pools include pools which earn additional interest from decentralised lending protocols and pools list less liquid assets. Both enable LPers to earn extra rewards while preventing diluting existing pools.

How to gain SRS&veSRS?

- Except buying SRS in the second market, joining IDO or gaining from the incentive program, there are three main ways for liquidity providers gain from 43% SRS of the total supply in Sirius Finance pool mechanism by staking LP tokens: Providing USDC, USDT, DAI or BUSD in the stable pool; Depositing LP tokens or other stablecoins in the metapools; Joining pools integrated with lending protocols.
- And by vote locking SRS, users gain veSRS. veSRS stands for vote escrowed SRS, it's a locker where users can lock their SRS for different lengths of time to gain voting power.

How does voting right work?

- To vote on the Sirius Finance, users need to vote lock their SRS and gain veSRS. By doing so, participants can earn a boost(up to x3) on their provided liquidity rewards and vote on pools related proposals including: Pool parameters: pool weight, amplification coefficient, etc. Adding or removing metapools; Total trading fee percentage; Preferred right for airdrop tokens; …
- And users who reach a certain voting power can also create new proposals. There is no minimum voting power required to vote. Users can lock their CRV for a minimum of a week and a maximum of three years.

Sirius Finance useful links :
Official website : Sirius.Finance
Twitter : Sirius_Finance
Telegram : Siriusfinanceofficial
Medium: @Siriusfinance