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Hello everyone! The IDO of the STORM token is approaching, which means it's time to learn about the applications of the future token of the first PERP DEX on TON.
⚡️ Introducing STORM
STORM is a deflationary token of the Storm Trade, with a limited supply of 1 billion tokens and unique applications that connect stakeholders, traders, and liquidity providers.
The STORM token offers users advanced staking mechanics with balanced token input and output in the market, as well as protocol liquidity buffering, enhancing the economic efficiency of the exchange.
💎 STORM Staking
The staking of the STORM token follows an advanced standard staking model with a balanced token supply in the market, preventing sudden liquidity spikes. Here’s how it works.
Holders have two options:
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Providing liquidity in the pool on Ston.Fi
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Staking with token lock on Storm Trade
Each option will receive 15% of the collected trading fees in the Storm protocol, totaling 30% for all token stakeholders.
Liquidity on Ston.Fi helps introduce the token into market circulation, while locking the token on Storm Trade removes it from circulation.
By receiving an equal number of fees, the pools will balance each other, creating an evenly distributed token supply in the market. Depending on the amount of token in the pools, different APRs will be formed, motivating users to shift tokens between pools to gain the most benefit from owning the token.
💰 Protocol Fee Income
Often, product tokens are independent and not directly linked to the product, so the success of the project doesn’t necessarily mean the token price will rise. However, at Storm Trade, we believe in the product we are developing, and the STORM token will become the true heart of our ecosystem.
All token stakeholders will receive 30% of the collected trading fees. But let’s delve deeper into what this means.
Fees on Storm Trade are charged when opening and closing positions, paying for funding, rollover, and liquidations. The more traders make trades, the more fees the protocol collects. Thus, the amount of fees directly correlates with the daily trading volume in the protocol.
In the past few months alone, the average daily trading volume on Storm Trade has increased more than 15 times. Additionally, Storm is the only derivatives exchange in the TON ecosystem, providing traders with unique opportunities.
👛 Liquidity Buffering
Let’s examine another crucial function of the STORM token – liquidity buffering.
How is the price of the SLP token formed?
The SLP token (Storm Liquidity Provision) is issued to users when they provide liquidity to the vault on Storm Trade and is burned when liquidity is withdrawn from the vault.
When a liquidity provider deposits funds into the vault, these funds go into a part of the vault called “Free Collateral.” Negative P&L (loss) of traders and spent fees increase the Free Collateral, leading to a rise in the SLP token price. Conversely, positive P&L (profit) is taken from Free Collateral, reducing the SLP token price. These fluctuations create SLP token volatility.
Sometimes, sudden market changes can cause significant SLP token volatility spikes, resulting in temporary losses for liquidity providers, known as impermanent loss. To reduce the impact of such spikes on liquidity providers and create smoother SLP price changes, we introduce a mechanism called liquidity buffering.
What is a buffer?
A buffer is a new part of the vault designed to ensure smoother SLP price changes and protect liquidity providers from losses due to market conditions.
Previously, we stated that funds from negative P&L, fees, funding, and rollover go into the part of the vault called Free Collateral. With the new mechanism, a portion of the funds will be reserved and sent to the buffer. Therefore, during high volatility and the need to pay traders a large positive P&L, funds will be taken from the previously accumulated buffer, rather than Free Collateral, softening SLP price fluctuations.
The Role of the STORM Token in the Buffer System
Over time, the buffer will accumulate enough funds to cover all obligations to traders, plus an additional 20%. When the accumulated funds in the buffer exceed trader payouts by 20%, all surplus funds will be used to buy back the STORM token from the market, and part of the buffer will be held in the STORM token. Thus, the STORM token becomes an essential part of the buffer, acting as an additional source of liquidity.
When the buffer volume falls to 105% of all obligations to traders, we will start converting part of the STORM tokens from the buffer to pay liquidity providers. This will allow the buffer to maintain the necessary level of liquidity, and the STORM token becomes a tool for maintaining system stability.
Given that the expected return for liquidity providers shows global growth, and declines are temporary, the introduction of buffering makes the STORM token deflationary, reducing seller pressure and increasing the token’s market value.
🚀 Token Launch
The launch of the STORM token is happening very soon, so it’s time to reveal some details about this long-awaited event:
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The amount of tokens available for purchase will be 4.2% of the total token supply.
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The starting price for token purchase will be $0.012.
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Market Makers NFT whitelist holders will have the right to the first token purchase. Each NFT will have a guaranteed allocation, which we will announce shortly before the IDO.
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The token will be launched on three launchpads, which we will introduce to you next week.
Right now, anyone can apply for the whitelist and try their luck at winning a Market Makers NFT. Follow the link to apply for the whitelist and learn more about the future token!
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🪙 More info about the STORM token
Token page | Whitelist campaign
⚡️ More info about Storm Trade