What is Stella?

Stella, previously known as Alpha Finance Lab, is a leveraged strategies protocol that aims to influence how leveraged DeFi operates. It strives to become a destination for DeFi users to access potential yield. Stella supports any on-chain strategies that users want to use on leverage, provided they are safe enough to be supported, at 0% cost to borrow. The protocol is composed of two parts: Stella Strategy and Stella Lend. Stella Strategy allows users to access multiple leveraged strategies with 0% borrowing interest, while Stella Lend enables lenders to lend assets to the lending pools on Stella and potentially receive yields.

How does Stella work?

Stella operates under the Pay-As-You-Earn (PAYE) model, which focuses on yield sharing between lenders and borrowers. In Stella Strategy, borrowers can access multiple leveraged strategies built on top of various DeFi protocols without paying any borrowing interest. Instead, they share the yield they receive when closing the position. In Stella Lend, lenders can lend assets to the lending pools on Stella and potentially receive yields. The yields generated from Stella Strategy are shared with lenders. Stella Strategy enables users to increase their positions by borrowing funds at 0% cost, potentially leading to larger position sizes and potentially higher yields.

What are the potential use cases for Stella?

Stella aims to provide a platform for users seeking to lend assets and potentially receive APY through in-kind token rewards without putting a maximum cap on the lending APY. Users from Stella Strategy can borrow these lent assets to open leveraged positions. The yields generated by borrowers are shared with lenders in the form of lending APY as a result of Stella’s Pay-As-You-Earn (PAYE) model. Stella also offers a range of leveraged strategies sourced from major DeFi protocols, providing users with expanded opportunities to generate yields.

What is the history of Stella?

Stella was developed by a core team led by Tascha Punyaneramitdee, a former Head of Strategy at Band Protocol, Product Manager at Tencent, and Investment Banking Analyst at Jefferies. The native token of Stella, ALPHA, was initially launched with a circulating supply of 174.1 million tokens out of a total of 1 billion ALPHA. As an ERC-20 token, ALPHA is backed by the Ethereum network, one of the well-known and widely used blockchain networks. Stella also undergoes external audits for its smart contracts and is undergoing its smart contract audit with PeckShield.