⏳ Phase One Status

Not a Stable Asset

Phase One of Stargate Finance is not to build SGT as a stable asset. While the overarching goal of Stargate Finance is to create a relatively stable asset that is decentralized and can be used as the future reserve currency, for now, the focus is not on stability. Instead, the protocol favours rapid expansion. With volatility and profit comes growth; this is what we want early on. During this initial phase, the primary objective is to build as large a treasury as possible.

Treasury Accumulation

Phase One of Stargate Finance is to accumulate treasury wealth as much as possible. To make the reserve currency work, big market size and diversification of participants are vital. To achieve this, Stargate Finance needs to stack enough protocol-controlled assets in the treasury as collateral. To incentivize players to do it, higher APY should be maintained for some period of time. Users need to pay premiums to take part in the game, and the premiums become the protocol's profit, for the future distribution of SGT tokens to the stakers.

A Liquidity Black Hole

Phase One of Stargate Finance is to perform as a liquidity black hole, especially by absorbing the LP tokens into the treasury as the POL (Protocol Owned Liquidity). By doing so, the depth of the liquidity pool can be guaranteed and less manipulated by whales.

A Positive Economic Circle

Phase One of Stargate Finance is to educate the market and create a positive economic circle. After being introduced by OlympusDao, this innovative economic model is still at an experimenting stage and needs lots of market guidance. Moreover, it is quite different from the monetary and banking theories in traditional finance. Minting, staking, profit sharing and liquidity absorbing can create a ‘perpetual motion machine' in this stage.

Reward the Early Players

Phase One of Stargate Finances to reward the early participants. Don't worry, when you are checking this article, you are still early. An important goal in Phase One is to provide attractive yields for the early stakers. By staking SGT, you are actually securing your equivalent share of the total marketcap. This is especially more profitable when the marketcap is smaller. As it grows, your total staked value grows together, no matter how the price changes.