Usecase 1: Money Legos
In our recent live AMA we presented the plans we have for ChargeDeFi. Central to all this is our long-term vision. We’re setting up a company, taking care of legal representation, and adding extra resources to the team continuously to build the vision that we have. Enabling this vision are the two use cases for Static that the team is building. In this article, we’ll dive a bit deeper into the first use case and explain the benefits for the ecosystem.
But first a disclaimer: our development teams follow an agile approach that allows them to quickly iterate on ideas and have a fast time to market. During development, ideas will change or be adapted to the ever-changing world of Crypto and DeFi. All information shared in this document is the current vision and may change as we go through the alpha/beta/mvp phases.
Money legos are automated “build your own” DeFi strategies. They enable a user to stack building blocks that contain choices and strategies. After setting up these strategies users can run them, enabling fully automated investments.
To give an example where the user has staked into a pool:
Block 1: Take all yield from pool A
Block 2: Swap 40% into BUSD, keep 60% of the assets.
Block 3: Wrap the BUSD with the asset into an LP token
Block 4: Stake all LP tokens you have in pool B
(You still have 20 % of the original assets remaining)
Block 5: Swap 10% of the assets into BUSD
Block 6: Swap remaining 10% into CAKE
Block 7: Stake swapped CAKE on pancakeswap
Within each building block the user can adjust the parameters. Percentages, tokens, pools, etc. are all configurable and can be saved into a personal set of strategies when done. To lower the entry for ‘beginners’ we’re planning on a list of strategies by experienced investors that beginners can copy. A bit like the ‘follow trader’ options that several share trading applications have adopted.
Benefits for Static
There are several methods we can implement into money lego’s that will benefit Static and/or increase the buy pressure.
1) Using Static as “Fuel”
Static can be used to power these automated transactions. That means the platform needs Static to work and each time a strategy gets executed a small fee in static will be deducted from the users wallet.
2) Strategist fee buyback
Almost every vault / strategy on DeFi has a built in strategist fee. Usually they range between 1 and 4% of the profits made in the strategy. By implementing a similar solution in Money Legos and using the profits to buy back Static we will create buy pressure on Static without forcing users to buy static beforehand. It will all be handled automatically allowing a lower point of entry into ChargeDeFi’s Money Legos.
3) Guided reinvestments
AlgoStables are often hard to grasp for new users and it takes time for them to understand how to act in the best interest of the protocol. Money legos will remove the need for users to read the documentation or educate themselves through our telegram/discord or watch Youtube videos. They can pick a strategy that benefits the protocol and still receive a daily paycheck. All at the click of a button.
An interesting option for the Static that our contracts buy back would be to create protocol-owned liquidity. The bought Static could be wrapped with BUSD and the protocol itself would own these LP tokens.
By having protocol-owned liquidity the price of Static will be less sensitive to trades and increase the price stability of the token.
Because we want to gauge market interest we won’t launch with the full suit of options right away. The initial launch will be a beta in Q1 where we will focus on strategies for ChargeDeFi. Automating the investment strategies that users are now doing manually and guiding new users to strategies that have the highest long term benefit for the protocol.