Starlay Finance — is a lending protocol that allows users to quickly and easily deposit and borrow assets on Astar Network. Depositors can provide liquidity to earn interest as a stable passive income, while borrowers can leverage their assets without selling them.
What is Starlay
Starlay is a protocol for lending within the Astar network, allowing users to retain their assets without selling them. By investing their funds, users can earn interest, providing themselves with a stable passive income, whereas borrowers have the opportunity to enhance the value of their assets without the need to sell them.
The Starlay Finance lending protocol is one of the key elements in the interconnection structure of the DeFi ecosystem. It's a public asset market accessible not only to users but also to bots and other DeFi protocols. Starlay Finance offers a full set of lending features, focusing on assets processed in Astar and Acala networks.
There are 3 key features of Starlay Finance.
- Depositing/Borrowing
- Flashloan (for developers)
- Staking
Astar Network aims to become a leading hub in the multi-chain era, creating links with Ethereum, Cosmos, and other blockchains. Starlay Finance is expected to contribute to the growth of the ecosystem by becoming a major marketplace for a variety of tokens from different blockchains.
If you hold your asset without selling it, you utilize the opportunity for capital growth. This feature allows you to borrow assets at a low interest rate, offering your assets as collateral.
The maximum amount that can be borrowed depends on the type and quantity of the deposited asset. If you want to withdraw your deposited collateral, you need to return the same amount and type of borrowed asset. For example, if you borrowed 1 ETH, you will need to return 1 ETH plus the accrued interest.
Auction Formation Rules
Starlay Finance offers the opportunity to launch a project to the public in an auction format, meaning that the price will be determined by the participants' bids. Flash loans allow users to access pool liquidity in a single transaction.
As part of participating in the auction on the platform, a number of key rules and opportunities for participants are provided, which are important to consider:
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Bid Limitation: Only one bid per account is allowed. This rule is aimed at ensuring equal conditions for all participants.
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Bid Currency: All bids must be made exclusively in USDC. This ensures unity and convenience in calculations.
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Funds Locking: The placed bid will be locked in a smart contract for the duration of the auction, thereby guaranteeing the fulfillment of obligations to the platform and other participants.
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Bid Cancellation Option: If a participant activated the bid cancellation option at the time of placing it, they can cancel their bid and retrieve the locked funds at any time during the auction.
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Changing Bid Conditions: Participants have the opportunity to change the conditions of their bid, including the amount of the bid and the limit price, after its cancellation.
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Limit Price: If a limit price was specified for the bid and the final token price after the auction ends exceeds this price, the bid automatically becomes invalid.
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Bonuses for Bids: Bids made without the cancellation option receive a 10% bonus. Bids without specifying a limit price receive a 5% bonus.
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Changing the Bid: Even without the cancellation option, participants can increase the bid amount, raise or disable the limit price.
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Successful Participant Rules: After the auction ends, if a participant becomes successful according to the established rules, their bid cannot be canceled.
These rules and opportunities ensure transparency and fairness in the auction process, providing participants with flexible tools for managing their bids and participation strategies.
It is also worth noting the varieties of tokens and their functional possibilities:
| Token Type | Description |
|---|---|
| LAY |
Main token of Starlay Finance, becomes available for trading after the token generation event. All features are available in the LAY section. |
| Voting Token (veLAY) | A non-transferable token; you can lock LAY for a certain period of time to receive veLAY for voting. Details in the veLAY section. |
| ib Tokens (lTokens) | Interest-bearing derivative tokens, issued and annulled upon deposits and redemptions. For example, when depositing USDC, the user receives lUSDC as collateral. |
| Debt Tokens (vdTokens) | Debt tokens, issued and annulled upon borrowing and repayments under variable interest. For example, when borrowing USDC, the user receives vdUSDC as debt. |
| Stable Debt Tokens (sdTokens) | Debt tokens, issued and annulled upon borrowing and repayments under stable interest. For example, when borrowing USDC, the user receives sdUSDC as debt. This feature is currently disabled. |
Description of the Flash Loan Feature
Flash Loan is a feature designed for developers. There is no specific page for users on the Starlay Finance platform. Developers can borrow any available assets without providing collateral, performing loan and repayment operations within a single transaction.
Flash loans offer the opportunity to access pool liquidity (only for reserves where borrowing is allowed) in a single transaction, provided that the borrowed amount plus fee is returned or (if allowed) a debt position is opened by the end of the transaction.