Upcoming 1-Click Staking ZAP Launch: Understanding Design Decisions and What to Expect
StellaSwap will launch the very first ZAP feature on Moonbeam 🚀, allowing users to automate the yield farming process by streamlining the LP token generation and withdrawal process, which is the most time-consuming process for DeFi staking. Before the launch of the ZAP feature, it’s good to share with the community our team’s thought process in conceptualizing this feature.
Design Decisions Around Creating the ZAP Function
There were a total of 3 aspects that culminated in the conceptualization of the ZAP function:
#1: Simplifying DeFi Complexities 👏
Abstracting the DeFi journey is a vital consideration in crafting features and products on StellaSwap. The ultimate objective is to foster mainstream adoption, and simplification is the way to do that. This enables deconstructing the traditional DeFi user lifecycle and weeding out complexities so that it will be ultra-simple for end users. DeFi staking and yield farming is cumbersome for the average Joe, and therefore simplifying this process through ZAP ensures that users can start generating juicy DeFi yields in as few steps as possible. Since liquidity provisioning is the most popular form of yield farming in the DeFi space, ZAP will abstract the cumbersome nature of LP token generation and withdrawal for an enhanced user experience.
#2: Creating Ecosystem Stickiness Through Innovation 💻
StellaSwap is committed towards building a diverse and robust one-stop gateway to DeFi on Moonbeam. Creating stickiness is vital in fostering utilities across not only the StellaSwap ecosystem, but the wider Moonbeam ecosystem. Creating tools, features and products for end users as well as projects will facilitate strong network effects and value enhancements. The idea behind ZAP will not only solve an apparent pain point within the DeFi process, but would also contribute towards building a conducive environment for users in their DeFi investment journey. Moving away from the traditional DEX functionalities would enable users to interact more deeply with the protocol and foster brand loyalty, which is vital for maximizing value-accrual.
#3: Value-Accrual Towards STELLA Tokenholders 💰
Maximizing tokenholder value is perhaps the most important foundation for StellaSwap. Accruing value to STELLA tokenholders is important in facilitating STELLA ownership, as this affords a myriad of utilities to tokenholders that can come in the form of financial incentive (aka profit-sharing), governance and so on. Having a suite of features and products would make it easier for revenue generation that will eventually be distributed to tokenholders. Launching ZAP would contribute towards the Treasury, as every trade on ZAP will generate 0.5% fees. There will then be a sustainable revenue model for the maximization of tokenholder value, through buybacks, burn programmes as well as redistribution towards users
The culmination of the design decisions above led to a logical conclusion in extending our features starting with one of the most common issues faced by many: the cumbersome nature of yield farming.
What to Expect for ZAP Launch
We have broken down the development of ZAP into 2 layers: V1 and V2.
V1: Single-Asset Conversion to LP Token with the Same Underlying
Users that have USDC and wants to generate an LP token for yield farming can do so only on farms with USDC as one of the underlying coins. This means that if you have USDC in your wallet, you can use ZAP to automatically convert to any LP token with a corresponding USDC pair, such as STELLA-USDC LP, GLMR-USDC LP, BNB-USDC. You will not be able to convert your USDC into LP farms that does not contain USDC in its pair, such as STELLA-GLMR. We will continue to extend the number of supported single-assets that can be used for ZAP.
V2: Single-Asset Conversion to Any LP Token
Down the line, users would be able to convert their single asset, into any LP token, even if the is no corresponding asset within the LP pair. For instance, you can use your USDC to ‘ZAP’ into the BNB-GLMR easily. This affords total flexibility and autonomy in selecting whatever LP tokens they’re interested in getting, without the limitations of their single-asset. This requires heavy development in terms of routing an efficient methodology to convert the single-asset tokens into various LP tokens.
StellaSwap is the first and leading Moonbeam DEX that offers an integrated gateway to the DeFi world. Users can swap, earn, yield farm, bridge assets, explore new projects and engage in NFT trading all from a single unified platform. StellaSwap’s products are structured in such a way that facilitates decentralized governance of STELLA holders, while continuing to innovate on the collective foundations by design.