Stabilize Quick Start

What is Stabilize?

Stabilize arbitrages within stablecoin and proxy token pools. Despite their name, stablecoins fluctuate in price due to supply and demand. When these fluctuations occur within a pool, the higher priced stablecoin is sold for the lower priced stablecoin. Profit is then realized when the lower priced stablecoin returns to its peg.

The proxy token pools utilize the same arbitrage strategy but with proxy tokens, such as wrapped BTC or staked ETH.

What do the zs, LP, Staking Pools, and Treasury Furnace do?

The zs pools are the arbitrage trading pools.

The LP pool is where depositors provide liquidity to the protocol via Uniswap.

In the STBZ Staking Pool, depositors deposit STBZ tokens and are awarded a share of the arbitrage profits.

In the Treasury Furnace, STBZ can be burned in exchange for a proportion of the tokens in the furnace, which is funded by withdrawal fees.

What is the APY based off of?

The first number of the APY is based off of distribution of minted STBZ tokens.

The second number of the APY is based off of profits from previous arbitrage trades. Arbitrage profit APY is also listed on the wrapper itself. This APY is the "since inception" return annualized. You can see the exact return since inception by looking at the price/token metric in the wrapper - every token starts at 1 and increases from there

How safe is Stabilize?

Stabilize has been audited by Bramah Systems and DeFi Yield.

Stabilize utilizes Chainlink and Aave for price data, reducing the threat of flash crashes and manipulation from developers.

Flash loan exploits are mitigated through two ways: contracts cannot deposit and withdraw in the same transaction and smart contracts are not allowed to call the trading strategy.

Tokens are also whitelisted to avoid arbitrary code execution.

How can I start?