There are no programmatic burns of $STATICS ... why? One of the most common practices for projects is to buy back and burn their tokens. This works for certain platforms, but what if you are one that needs to provide incentives for liquidity? There are two dominant models in DEX/AMMs currently: the Uniswap model, which directly lets LPs collect fees, or the ve(3,3) model, where users lock tokens, vote on LP rewards, and LPs are provided emissions in the project's token as an incentive. Both work. Both are proven. But both have their quirks. As an LP, if I don't want an emissions token, I have Vanilla Uniswap. If I don't mind emissions as rewards, I have many of the ve(3,3) clones. But what are we doing here? ve(3,3) requires emissions FOREVER. There is no max supply on these tokens. Sure, you can burn them, but they still get emitted into the millions weekly. This is not just how LPs get paid in some cases, but also how some teams get paid. So what does that translate into? Constant sell pressure. You can argue with me on this, but I think it's pretty common sense. What's worse is that because the emissions never stop, there really is no way to kill this. So why are we trying the same thing over and over again? Because it works, and it is easy to copy. I am proposing another way. When activation or trading fees are collected in $STATICS, they are put aside for incentives. Think about this. If we have a constant flow of $STATICS, is this not akin to emissions WITHOUT the actual emissions? Why is it standard for projects to infinitely emit? But there is another thing here, and this may be a hot take: Why is 100% of fees being redistributed to lockers/voters? Why have we never asked, why not a hybrid system? This is what Phase 1 of @StaticsProtocol will achieve. It will be a DEX built on Uniswap v4 that uses the token to provide incentives funded by its own trading and activation fees. It will allow outside LPs, but use hooks to apply a fee that compounds Protocol Owned Liquidity while also rewarding $STATICS stakers. Instead of locking to vote, you just stake. Pick up to 12 assets as rewards, sit back, and collect. Let me explain this. This means if USDG is trading and collecting fees across 10 pools and you select it, you get a cut of the fees from ALL those pools. You can do this for up to 12 assets! Your stake weight is counted the same for every choice. But this still creates game theory. If there are 200 assets trading... you can only select 12. You are forced to decide what you want exposure to and hope that not too many others are opting into the same assets. But let's think about new assets. If you are staking and opt into a brand-new asset as one of the first users, your weight will be much more substantial for that asset because the crowd has not arrived yet. Conviction matters early in this case. Why not take a bit from all the working systems and build something that takes the best from them all? Let's challenge ourselves to think differently.

TSVs are going to have clear places to swap via @Uniswap hooks. But are they going to have complementary infrastructure for credit based on NMS tokens? I imagine TSVs are going to want one place to handle all of this, built on already trusted providers like @Morpho. Midnight gives us tools Blue didn't have, but this is why both work together. Give them a basket protocol and stablecoin on top, and things start to look very full service. Best part is, permissioned infrastructure does not have to affect the permissionless structure. @StaticsProtocol is a meta platform.

Imagine the TVL flywheel when uni v4 hooks that deposit into lending markets for leveraged stonks take off Why wouldn’t aave and morpho push for this in the future?

Phase 1 of $STATICS Mainnet: Full DEX functionality. Stake $STATICS and opt in to up to 12 assets as rewards. Permissionless market creation. Creators get 5% of all pool fees forever. How you shape a market matters. Uniswap v4 native fees for LPs, plus a hook fee charged in both assets. Part of that fee is locked into protocol-owned liquidity, strengthening markets after every swap. Opt into USDG and get rewards from every USDG pool. Opt into NVDA and get rewards from every NVDA pool. WETH? You get the idea. But one thing we will have is permissioned infrastructure that any TSV can harness to create markets. The permissioned infrastructure leaves all venue control up to the TSV and allows them to handle permissions. $STATICS never handles KYC or any permissioned control. It only provides the infrastructure needed to do so efficiently, while allowing those markets to benefit from the rest of @StaticsProtocol's upcoming features. Most importantly, the permissionless side is never affected by the permissioned infrastructure, but Operators still get a cut of the permissioned activity in a compliant way. If an asset is restricted by regulations and trades in a pool with a permissionless asset, the permissioned asset is automatically converted into the permissionless asset and distributed as rewards. Building for compliance does not have to kill permissionless markets. $STATICS is built for this. The release date for Phase 1 will be announced this coming week, so stay tuned.

.@frankdegods is correct. The SEC's new Innovation Exemption is explicitly built around permissioned TSVs. This means AMMs operating under this framework will need a way to determine whether a participant is permitted to trade tokenized NMS stock. Looking at the landscape on @RobinhoodCrypto, I'm not seeing many protocols that will be capable of supporting this. Many of your favorites are going to have a hard time navigating it. Fortunately for @StaticsProtocol, I have been building for this eventuality since day one. $STATICS is entirely capable of hosting permissionless AND permissioned venues, with the infrastructure needed to support compliant markets where specific assets require permissioned access. As I keep saying... pay attention, because we are about to show why careful design can preserve CROPS at the infrastructure layer while enabling compliance where specific assets require it.

Another cool thing about our $STATICS basket tech: They don't actually need to be baskets. What does this mean? It means you can take any token and use the same underlying system that creates credit, yield, and market infrastructure and give it to any single token. You can fractionalize an asset by setting the underlying requirement to less than 1. You can consolidate denominations by wrapping more than 1 into a single token. And then, of course, you can just wrap 1:1. You see, baskets are not the only use case here. Okay, but let's look at the other end. Basket tokens are just normal ERC-20 tokens. They do not rebalance or have transaction taxes. Well, what happens if we make a basket of baskets? What if we tokenize NVDA/TSLA/SPCX, then tokenize GME/AMC/CASHCAT, then tokenize STATICS/WETH/AAPL, all into baskets, and then tokenize all of those into a basket? Basically, onchain nested ETFs. That is also one heck of a diverse arbitrage graph that opens up as correlated pairs form between the underlying assets and baskets. The possibilities for composability get pretty wild.

Let's dig into what $STATICS baskets are and how they work. I may have already done a post about this, but people forget. Baskets in @StaticsProtocol should be very easy to reason about. Basket underlyings have STATIC amounts. This means the underlying composition is chosen at basket creation. Example: 0.1 NVDA + 0.3 WETH + 0.08 SPY make up the basket NWS1. This NEVER changes! There is no rebalancing, and you can always mint 1 NWS1 by depositing 0.1 NVDA + 0.3 WETH + 0.08 SPY. When you burn 1 NWS1, you receive 0.1 NVDA + 0.3 WETH + 0.08 SPY, less STATIC flat redemption fees. This makes it extremely easy for an arbitrage bot or trader to reason about costs and profit margins when planning arbitrage routes. When a basket is created, the corresponding Uniswap markets with our custom V4 hook are deployed. This hook allows outside LPs like normal and rewards them, but there is a second fee that is paid in both tokens and managed by the hook. This fee is split between protocol-owned liquidity that automatically compounds into locked full-range liquidity, $STATICS Operators, $STATICS and Basket Token stakers, and the protocol treasury. The markets created are correlating. This is important. In the case of NWS1, we would have pairs with NWS1/NVDA, NWS1/WETH, and NWS1/SPY. This creates an already dense arbitrage graph between the markets, mints and burns, as well as outside venue pricing. This brings volume that is not dependent on speculation and only depends on market divergence. Anyone can create basket tokens. This is not hard or novel. What matters is the infrastructure around them. This is why we also allow you to access 95% of the liquidity of your staked Basket Tokens without them losing staking yield, while only charging origination and extension fees. It works the same way as Operator Credit! No liquidations, no health factors. Just access to the liquidity that was already yours while still allowing it to earn! Now, what if you don't want the underlyings and you want a stablecoin? Well, that is where our @Morpho integration comes in, where you will be able to move approved baskets into Morpho as collateral while STILL earning basket staking yield! So basket tokens are not just basket tokens in $STATICS. They are full financial products! There is so much more to talk about, so more posts are coming soon.

.@hooftly explains the mechanics behind $STATICS Every pool’s trading fees flow into a fee index that rewards $STATICS stakers, Holders can opt into up to 12 assets and earn proportionally from fees across every pool trading those assets The Operator NFT layer adds another value accrual mechanism: • Cost 1.18M Static tokes + Acquisition Fee • Every acquisition fee permanently grows the reserve • Returning the NFT gives back 180K Static token + your share of the reserve

The $STATICS Genesis Epoch has concluded! Secured Credit is now live! Access up to 95% of the $STATICS liquidity backing your Operator NFT for one flat fee of 0.02 ETH. Credit is term-based, so you must pay it back within 30 days or you lose your Operator! Extend your credit term by 30 days at any time for another flat fee of 0.008 ETH. This means you can extend your credit for as many months as you want by paying the extension fee multiple times upfront. This makes positions easy to reason about and makes it easier to plan leverage. It also makes the system extremely capital efficient. You only have to pay back the $STATICS that you accessed, and there is no risk of liquidation during a price wick or any health factors to monitor. The most important feature is that your Operators do NOT stop earning. This makes things like Operator loops possible and potentially positive carry. As we add more revenue streams, and there are multiple in the pipeline aside from the full Statics system, Operators earn more. When Operators earn more, Operator loops can become positive carry. You can then stake your $STATICS and earn even more! I believe this type of credit is extremely underexplored because it is not as lucrative as interest-based systems. I get that, but @StaticsProtocol is a protocol first and foremost for the user. I built this because it is the system I as a DeFi user wanted to use myself.

New @Uniswap V4 hook incoming. Normal LPs are free to provide liquidity and get rewarded by the pool's standard Uniswap fee using native V4 accounting. Where it does work is the bilateral fee applied to both input/output. This fee can be set and it charges the fee on top of the LP fee. Every swap collects both assets. If we have an LP fee of 0.3% and bilateral fees of 0.5%, that is a total fee of 1.3%, with 1% going to the protocol treasury AND... Operators. Every swap earns operators both assets. This also means Treasury and Operator revenue still grows in other assets in a downward trend. The current $STATICS / $WETH pool does not pay outside LPs and uses Doppler's custom multicurve design. Great for a fair launch. Great for fee sharing with Operators. Not the best for anyone wanting to take part in providing liquidity. This hook solves the issue of rewarding outside LPs and providing Operators an ever-growing revenue stream. More Pairs == More Volatility and divergence. This leads to increased volume. Increased volume leads to more Operator revenue. So stand by for a list of new $STATICS pairs to trade!

Registered Operators for @StaticsProtocol have earned: $108,885.00 So far in Protocol revenue and the flywheel hasnt even started yet. $STATICS == Volatility Farming and when we go live in the coming weeks arbitrage will feed operators even more. Congrats Operators.

Everyone is talking Memecoin Stock Pairs. The real alpha is Memecoin and Stock paired baskets and correlating markets. This is what @StaticsProtocol is doing and its going to be wild. Pay attention.

Example of how to earn via @StaticsProtocol: Anyone can deposit their tokens to a Position NFT and select up to 12 assets. Those assets can also be Basket Tokens, which can have 16 underlyings. That's an upper bound of 192 assets. Whenever a swap fee occurs, a portion of it is sent to the global fee index. When users opt into tokens, they are opting into these fee indexes. You compete with everyone else in the pool, and the index is distributed pro rata to your weight. The cool part is EVERY pool that trades the tokens a user opts into feeds the same global fee index. You literally earn from every pool! Because of this and the fact you can only opt into 12 tokens, I really think reward distribution is going to get fun. Will post more ways to earn and use $STATICS soon.

Looks like @coingecko has listed @StaticsProtocol go take a look. coingecko.com/en/coins/stati…

See I can talk. Lets get at it.

Operator Looping in @StaticsProtocol: Every Operator is backed by 180,000 $STATICS. After the Genesis Epoch, an Operator can open a secured credit position for up to 171,000 $STATICS while the NFT stays in your wallet and continues participating in protocol rewards. That means a maxed Operator leaves only 9,000 STATICS of residual equity behind. Now think about what happens when that borrowed STATICS is used to acquire another Operator. You buy another Operator for 180,000 STATICS. That new Operator can then borrow up to 171,000 STATICS. Your net STATICS requirement for each additional Operator is only 9,000 STATICS, plus protocol fees and the Operator's share of the permanent ETH reserve. Then you can do it again. And again. The asset backing the NFT and the asset being borrowed are the same. There is no volatile NFT floor-price oracle determining your LTV. There is no mark-to-market liquidation because STATICS fell against STATICS. The backing is deterministic. 180,000 STATICS in. Up to 171,000 STATICS out. The result is extremely high capital efficiency. At 95% LTV the theoretical recursive exposure approaches 20x before fees, reserve buyins. But leverage is not free. Opening credit costs ETH. Acquiring Operators costs ETH. Maintaining credit requires extensions. Those fees create meaningful friction, generate protocol revenue and continuously capitalize the permanent ETH reserve backing every Operator. This is important. The protocol does not need to prevent users from looping. It needs to make looping economically productive for the system. If somebody wants to turn 10 Operators into 100+ Operators, great. They should be able to. But every step through that loop should create revenue, strengthen Operator backing and reward the users supplying long-term value to the protocol. There is also a natural brake. Credit is extended in 30 day periods. If the rewards generated by your leveraged Operators no longer justify the cost of maintaining the debt, the rational move is to deleverage. No forced liquidation because a floor price moved. And while an Operator has active credit, it remains your Operator. It can remain activated. It continues carrying its reward weight. It continues earning its share of eligible protocol revenue. If an Operator is eventually returned to the vault, its reward weight goes to zero and it stops participating in future fee distributions. Existing earned rewards are preserved for the previous owner. So looping does not create phantom vault-owned Operators endlessly diluting everyone else. The goal here is not leverage for the sake of leverage. The goal is to make capital inside Statics reusable. Own an economically productive asset. Borrow against it without destroying its productivity. Deploy that capital again. Pay the protocol for the privilege. And let that activity feed back into the system. Capital efficiency should create revenue. Revenue should strengthen the protocol. And value should flow back to the users actually participating in it.

🔴 LIVE: Crypto Traders Pumping Stocks?! | Market Update + Interviews nitter.net/i/broadcasts/1oJMvNlbw…

🔴 LIVE: Crypto Traders Pumping Stocks?! | Market Update + Interviews nitter.net/i/broadcasts/1oJMvNlbw…

Something has happened in the trenches. We are seeing the emergence of a new meta that, to me, has always been obvious. If you troll my old Reddit posts, you will see me talking about this. I have always been adamant about one thing when it comes to memecoins... they need more than a meme. Bored Ape Yacht Club were pioneers here because they took an otherwise pretty useless meme and turned it into a social phenomenon. They achieved this by adding exclusive perks for holders, different levels, and more. The lesson learned here? Utility is required for any meme to survive long term or grow further. That utility can look like what BAYC did... Or it can look like something else. How many memecoins have you ever held? Were you glued to the charts, hoping it wouldn't nuke, with your finger on the sell trigger? This is psychologically draining. It's also dying as a meta. Enter MemeFi. The very thing I have been talking about for so long. I'm not the only one who sees this now. It started with Stonkbrokers piercing the veil and really setting it off. People started to realize memes could be more. They could be productive, and they could earn. Once you see this in one place, you start to realize where this is not happening... which is almost every OG meme in the space. Okay, cool, but SB was built from first principles by a builder who was deeply entrenched. They can't all be the same caliber, right? This may be true, because building DeFi is hard. But what if there were a way to make memecoins useful without needing to build massive rewards incentives internally? What if you could also tie it into the growing MEME/Stock pair meta? This is one of the things STATICS is trying to accomplish. You may have heard about our basket tokens and how, when created, Uniswap v4 pools are deployed pairing the Basket Token itself with each of its underlying assets. Three underlying assets in the basket? Three pools are created. This creates an arbitrage graph between the pools, the external venue value of the underlyings, and Basket Token mints and burns. Now enter memecoins and stock pairs. These are already seeing traction, and users are making real yield in liquid assets by LPing Meme/Stock pairs. But what happens when attention ends? What drives trading if no one is paying attention? ARBITRAGE. I know I sound like a broken record at this point, but the more opportunity you have for price divergence, the more opportunity arbitrage traders or bots have to rebalance and profit. This translates to volume. Volume translates to fees. Fees translate into rewards for LPs. And rewards can translate into attention coming back because the yield is good. See where I am going? Basket Token pools don't require speculation to attract volume. All they need is price divergence. In trading, divergence is an everyday occurrence. Imagine a basket with underlyings of NVDA and MEMECOIN. We call it NM1. You then have pools with: NM1/NVDA NM1/MEMECOIN If MEMECOIN dumps hard on an outside exchange, think about what just opened up... The MEMECOIN/NM1 pool has not dumped with it, and this has created a DIVERGENCE. A trader can buy MEMECOIN at the lower external price, sell it into the NM1/MEMECOIN pair, acquire NM1 tokens, burn NM1 for the underlying assets, and profit. The trader was able to profit AND pick up NVDA at the same time. And this is just a super simple example of all the possibilities that open up. $STATICS is building infrastructure to make existing assets useful and, ideally, bring attention back to them. The Uniswap v4 hook also compounds part of the fees directly back into Protocol Owned Liquidity that can't be removed until a pool is decommissioned. This means every trade deepens protocol-owned liquidity. MemeFi is here, and it's being paired with stock tokens. The frontier for this is on @RobinhoodCrypto, and @staticsprotocol is building for it.