Frequently Asked Questions (FAQ)

General Questions

What is Stasis?

Stasis is a delta-neutral vault that generates stable yield through funding rate arbitrage on Hyperliquid. Users deposit USDC and receive rSTS tokens that automatically accrue value over time.

How does Stasis generate yield?

Stasis earns yield primarily through funding rate arbitrage - collecting periodic payments from perpetual futures positions while maintaining market neutrality. This provides stable returns regardless of cryptocurrency price movements.

What is delta-neutral?

Delta-neutral means the portfolio has zero exposure to price movements of the underlying assets. If crypto prices go up or down, the portfolio value remains stable while still earning yield from funding rates.

Is Stasis safe?

Stasis employs several safety measures:

  • Professional risk management with automated rebalancing

  • Smart contract audits and security reviews

  • Delta-neutral strategy reduces market risk

  • Transparent, on-chain operations

However, like all DeFi protocols, there are risks including smart contract vulnerabilities, strategy risks, and external dependencies.

How It Works

What is funding rate arbitrage?

Funding rates are periodic payments between long and short positions in perpetual futures. Typically, long positions pay short positions. Stasis holds short positions to collect these payments while hedging with spot holdings to remain market-neutral.

How often are funding payments made?

On Hyperliquid, funding payments occur every 8 hours (3 times per day) at 00:00, 08:00, and 16:00 UTC.

What happens if funding rates turn negative?

While rare, negative funding rates mean shorts pay longs. Stasis has risk management procedures to minimize exposure during these periods, including position adjustments and temporary strategy modifications.

How is the exchange rate calculated?

Exchange Rate = Total Vault Value (USDC) / Total rSTS Supply

As the vault earns yield, the total value increases, automatically improving the exchange rate for all rSTS holders.

Using Stasis

What do I need to get started?

  • Web3 wallet (MetaMask, Coinbase Wallet, etc.)

  • USDC on Avalanche network

  • Small amount of AVAX for transaction fees

  • Basic understanding of DeFi and wallet operations

What is the minimum deposit?

There is no minimum deposit amount. You can start with any amount of USDC, though consider transaction fees for very small amounts.

How do I earn yield?

Simply deposit USDC and hold the rSTS tokens you receive. The tokens automatically increase in value as the vault generates yield - no claiming or additional actions required.

Can I withdraw anytime?

Yes, you can withdraw your funds at any time based on the current exchange rate. There are no lock-up periods or withdrawal penalties.

How long does it take to see returns?

Yield accrues continuously as funding payments are received (every 8 hours). However, the exchange rate updates may not be immediately visible due to gas optimization. Significant changes become apparent over days and weeks.

Risks and Safety

What are the main risks?

  1. Smart Contract Risk: Bugs or vulnerabilities in the code

  2. Strategy Risk: Delta-neutral strategy may not perform as expected

  3. Exchange Risk: Dependence on Hyperliquid platform

  4. Liquidity Risk: Large withdrawals may require time to process

  5. Regulatory Risk: Potential regulatory changes affecting DeFi

How is market risk managed?

Stasis maintains delta-neutral positions by:

  • Continuous monitoring of portfolio delta

  • Automated rebalancing when delta exceeds thresholds

  • Diversification across multiple assets (ETH, BTC, etc.)

  • Professional risk management systems

What happens in extreme market conditions?

The protocol has emergency procedures including:

  • Rapid position unwinding if needed

  • Increased monitoring during high volatility

  • Liquidity buffers for normal operations

  • Circuit breakers for extreme scenarios

Are funds insured?

Stasis funds are not insured like traditional bank deposits. However, the protocol employs multiple security measures and has undergone professional audits.

Technical Questions

Which blockchain does Stasis use?

Stasis is deployed on Avalanche (currently Fuji testnet, mainnet coming soon) for fast, low-cost transactions.

What is rSTS?

rSTS (Rebasing Stasis Token) is an ERC-20 token representing your share of the vault. It automatically increases in value as the vault generates yield.

Can I use rSTS in other DeFi protocols?

Yes, rSTS is a standard ERC-20 token and can be used in other DeFi protocols, though this may affect your yield accrual.

How are gas fees handled?

Users pay standard Avalanche gas fees for deposits and withdrawals (typically $0.01-0.05). The protocol optimizes gas usage through efficient smart contract design.

Performance and Returns

What returns can I expect?

Target APY is 5-6% based on historical funding rate data. Actual returns may vary based on market conditions and funding rate fluctuations.

How does performance compare to other strategies?

Stasis offers:

  • Lower volatility than direct crypto investment

  • Higher returns than traditional savings

  • More stable yields than most DeFi protocols

  • Superior risk-adjusted returns (Sharpe ratio)

Are returns guaranteed?

No, returns are not guaranteed. They depend on funding rates, strategy execution, and market conditions. Past performance does not guarantee future results.

How is APY calculated?

APY is calculated based on the vault's performance over time, annualized to show yearly equivalent returns. It includes compounding effects from automatic reinvestment.

Fees and Costs

What fees does Stasis charge?

[Fee structure to be finalized - typically includes management fee and/or performance fee]

Are there withdrawal fees?

No, there are no withdrawal fees. You only pay standard blockchain transaction fees.

How do fees affect returns?

All fees are transparently deducted from vault performance before calculating the exchange rate, so your rSTS value reflects net returns after fees.

Troubleshooting

My transaction failed. What should I do?

Common solutions:

  • Ensure sufficient AVAX for gas fees

  • Check USDC balance and allowance

  • Try increasing gas limit

  • Wait for network congestion to clear

  • Contact support if issues persist

I can't see my rSTS tokens in my wallet

Add the rSTS token manually to your wallet:

  • Contract Address: [To be updated]

  • Symbol: rSTS

  • Decimals: 18

The website won't load or connect

Try:

  • Clear browser cache and cookies

  • Use incognito/private browsing mode

  • Try a different browser

  • Check your internet connection

  • Verify you're on the correct network

My yield seems lower than expected

Remember:

  • Yield accrues over time, not instantly

  • Funding rates fluctuate with market conditions

  • Exchange rate updates may be delayed for gas optimization

  • Consider the time period for accurate APY calculation

Getting Help

Where can I get support?

  • Documentation: Comprehensive guides and explanations

  • Discord: Community support and real-time help

  • Twitter: Updates and announcements

  • Email: Direct support for technical issues

How can I stay updated?

  • Follow @StasisProtocol on Twitter

  • Join our Discord community

  • Subscribe to our newsletter

  • Check the documentation for updates

Can I provide feedback?

Yes! We welcome feedback through:

  • Discord community discussions

  • GitHub issues for technical feedback

  • Twitter mentions and DMs

  • Direct email to the team

Still have questions? Join our Discord or contact support@stasis.finance

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