Since DeFi gained popularity in 2020, there has been an influx of platforms into the space, each with an attempt to solve problems surrounding DeFi. These problems range from liquidity to security and profit generation.
The search to proffer solutions has led to the evolution of DeFi from 1.0 to the most recent model, 2.0. Despite these new ideas and concepts around DeFi, it is still heavily challenged. For example, a major challenge with DeFi 2.0 is liquidity locking. The chain currently works this way: there is an asset for which a liquidity pair (LP token) is created, and after that, the LP token is staked in a yield aggregator. At this point, the investor can do nothing else with the locked-up assets except for changing the overall strategy.
This is just one of the current challenges in the ecosystem. In this article, we will be diving into a major DeFi protocol solving the problems with DeFi 2.0. The protocol is called OneStake.
What is OneStake?
OneStake is a rapidly growing DeFi 2.0 project solving real problems in yield protocol. The project provides an alternate way to efficiently stake stable and single assets while delivering the highest APR directly to users’ wallets. In addition, from researching new secure high APR protocols to rebalancing and reinvesting gains, OneStake solves every challenge for the average or professional DeFi user.
Furthermore, OneStake uses the unparalleled aToken mechanics developed. This mechanism of interest-bearing tokens has shown to be effective in addressing the major issues around gas costs. A OneStake user simply stakes one of the stablecoins into the stable pool in exchange for an iUSD token.
The automatic rebalancing method selects the best protocol with the highest yield and converts collateral into a whitelisted stablecoin, which is then transferred to the pool with the highest APR at the time of rebalancing.
For instance, iUSD is made up of MIM, which is staked in the MIMcrv pool and has a 16.86 per cent APR. OneStake discovers another pool with a greater APR at the time of rebalancing — the FraxCrv pool, which has a 21.5 per cent APR. Curve Finance is used by OneStake to rebalance and swap MIM in FRAX. OneStake then builds FraxCRV and stakes it on Convex. Following the rebalance, iUSD now has the highest APR and is backed by two whitelisted stablecoins: FRAX and 3CRV.
DAO – In OneStake, every user is in charge
The OneStake project runs a unique DAO system that decides how the project is run. The DAO will whitelist the protocols and assets that OneStake will interact with. Also, assets from each group are aggregated into one pool. So, the protocol will have three pools: stablecoin, bitcoin, and ether.
Each of these pools will have a set of whitelisted tokens that match the group’s requirements. When a user invests in a pool, they can put money into any asset that is part of the pool, and the protocol will generate swaps for the stablecoin or wrap-token that the strategy is presently utilizing.
Current development and Partnerships
Since its launch, OneStake has shown exponential growth and strategic alliance. One of the most recent is their partnership with Lightening launchpad, which is scheduled to conduct the project’s first fundraising. Also, the project opened up investment opportunity for early seed investors, up to USD 600k but not for long, as it is set to close early this April.
In addition, the MVP of OneStake is ready and will be released in June; currently, no date has been specified. This is definitely one project every DeFI enthusiast, which we should all be must look out for.
Conclusion
OneStake is not one of the projects built heavily on hype; rather, it is designed and works to solve real-life challenges. The project is built by a team of highly dedicated and knowledgeable experts in the blockchain space with years of experience under their belt.
The platform uses the process of Aggregation, Allocation and Auto-compounding to help users maximize DeFi opportunities. This is not limited to any level of user experience.
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