What Is Stabilize (STBZ)?
Welcome to the documentation for the Stabilize Protocol to learn about how it works and how to take advantage of its active arbitrage strategies. Stabilize exists on both Binance Smart Chain and Ethereum Layer 2 solution, Stabilize One. In a nutshell, Stabilize aggregates arbitrage. They offer users to deposit into strategies which execute arbitrage trades between proxy tokens via executor bots. Stable coins despite their name have fluctuation in price due to supply and demand differences.
Users just have to deposit, and the trading code does all the work. The best is, users even get rewarded with STBZ or STBB for providing liquidity. Everything runs on-chain, and the executor bots, which take care of triggering the trades, are run by Stabilize community members, to ensure a decentralized and redundant execution of trades.
When these fluctuations occur, the higher priced stable or proxy coin is sold for the lower priced one. Stabilize offer users a chance to take advantage of arbitrage opportunities, while being 100% open source and have provided platforms for asking questions and learning about this process. The protocol uses economic scaling techniques to collaborate with stable coin initiatives while producing debt free reward incentives for users and underlying assets.
Stabilize Storage Key Points
|Circulating Supply||170,667.92 STBZ|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
What is arbitrage?
Arbitrage is the purchase and sale of the same asset in different markets in order to profit from differences in the asset’s listed price. It exploits short-lived variations in the price of identical or similar financial instruments in different markets or in different forms.
How does it apply to digital assets?
Stabilize are cryptocurrencies designed to be pegged to or float near fiat currencies. This gives traders and savers comfort knowing the value of these coins in the real world will be the same tomorrow as it is today. This is the goal of stablecoins, but sometimes is not the reality. Stablecoins sometimes go off their peg for an extended period of time due to fluctuations in demand and supply.
How does Aggregating Arbitrage help?
Stabilize arbitrage broadens the scope of possibilities for utilizing arbitrage from narrow market idea to realistic trade application. The concepts translate to many fields of study and currencies. Stabilize sees a need for individualized per protocol arbitrage due to the nature of shifting markets requiring a broad scope of possibilities available to fulfill needs.
Stabilize protocol operates using a decentralized network of executors to interact with the strategy contracts when arbitrage opportunities present themselves. These Executors are pivotal within the ecosystem of Stabilize, since they ensure a decentralized and redundant execution of trades.
Aggregating is the process that Stabilize brings together by developing processes with production practices to produce value. Stabilize Individually helping specific protocols to cluster arbitrage success where usually a costly internal process is required; now utilizing a decentralized aggregating arbitrage system community driven process to overcome loss of internal funds and matters of integrity.
Can anyone be an Executor?
Anyone can “execute” the smart contract function execute Swap Tokens to make the transaction happen. If the trade is not profitable it will not occur, the strategies can’t loose due to Executors doing something wrong. Executors get a percentage of the profit from each trade including a gas stipend.
How to set up an Executor bot
The easiest way to start is to develop an off-chain bot that monitors the Stabilize strategies continuously. This bot would query the expectedProfit function which returns wei units of base currency profit (when set to in WETH Profit For Executor set to true). If the profit is greater than the gas costs, the bot would then create a transaction to execute Swap Tokens with its own address as the parameter to receive its percent of profit. The bot may also set a minimum seconds since the last trade to limit its gas cost in case someone else beats it to the trade.
Stabilize Ideally, the executor will make continuous profit, trading depositors funds at the right times and depositors will make the best compound interest possible as their funds are traded at the most profitable times. It is important to note that the contract itself doesn’t allow for trading at a loss.