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Summary of Strike (STRK)
Overview
- Strike is a DeFi lending protocol allowing users to earn interest on cryptocurrencies.
- Users deposit tokens to a Strike market, receiving sTokens representing their stake in the pool.
Key Features
- Borrowers can take secured loans by depositing collateral (LTV ratio: 50-80%).
- Interest rates vary by borrowed asset, with automatic liquidation if collateral falls below the maintenance threshold.
- Community governance through STRK tokens, allowing holders to propose and vote on changes to the protocol.
Tokenomics
- Total supply:
About Strike: Empowering a New Era of Global Payments
Introducing Strike (STRK): A Revolutionary Cryptocurrency
Strike is a decentralized finance (DeFi) lending protocol that empowers users to generate passive income by depositing their cryptocurrencies into a diverse range of supported markets, thereby earning interest on their holdings.
When a user deposits tokens into a Strike market, they receive sTokens in return, which serve as a representation of their stake in the pool. These sTokens can be redeemed for the underlying cryptocurrency initially deposited into the pool at any time. For instance, depositing ETH into a pool would yield sETH in return. Over time, the exchange rate of these sTokens to the underlying asset appreciates, enabling users to redeem them for a greater amount of the underlying asset than initially deposited, thereby facilitating the distribution of interest.
On the flip side, borrowers have the option to secure a loan from any Strike pool by depositing collateral, with the maximum loan-to-value (LTV) ratio varying between 50% to 80% depending on the collateral asset. The interest rate payable differs according to the borrowed asset, and borrowers risk automatic liquidation if their collateral value dips below a predetermined maintenance threshold.
The Visionaries Behind Strike: Meet the Founders
Strike is a decentralized finance platform, distinguished by its lack of team allocations or founder reserves, and designed to be community-driven and fully decentralized in its operational protocol.
Unveiling the Unparalleled Excellence of Strike
According to Strike, the token distribution stands out for its absence of venture capital, shareholder, and founder/advisor token allocations, thereby ensuring a uniquely community-centric model. Furthermore, Strike intends to introduce a novel mechanism dubbed “Governors,” which will enable the expedited whitelisting of tokens, ultimately rendering the platform a scalable and agile DeFi ecosystem.
Strike’s community-driven governance model distinguishes it from other similar protocols, empowering holders of the platform’s native governance token, STRK. These token holders wield the authority to propose protocol amendments, engage in debates, and cast votes on implementing changes suggested by their peers, all without any intervention from the Strike team. This autonomy enables them to make pivotal decisions, such as selecting which cryptocurrencies to support, adjusting collateralization factors, and modifying the distribution of STRK tokens.
These STRK tokens can be acquired through third-party exchanges or earned by engaging with the Strike protocol, such as by depositing assets or securing a loan.
What Is the Circulating Supply of Strike (STRK) Coins?
Similar to many digital assets, the STRK token has a predetermined and finite supply. The total supply is capped at 6,540,888 STRK, with approximately one-third of this amount, or 2,540,888 STRK, currently in circulation as of this writing.
Out of a total of 6,540,888 Strike tokens, a substantial allocation of 4 million tokens will be incrementally distributed to Strike users over a span of 8 years.
The precise rate of STRK emission is susceptible to fluctuations over time, as it is contingent upon community-driven decisions made through the governance process, wherein voters can propose and approve changes to the emission rate.
Ensuring the Security of Strike Finance: A Robust Framework
On Strike, all operations are seamlessly facilitated by smart contracts, which automatically mint sTokens upon the deposit of Ethereum and ERC20 assets, and enable Strike users to effortlessly redeem their stake using their sTokens.
The protocol institutes a stringent collateralization requirement for all assets supported by the platform, thereby ensuring that each pool maintains a state of perpetual overcollateralization. In the event that the collateral value dips below the minimum maintenance threshold, it will be promptly liquidated at a 10% discount to liquidators, with the proceeds being utilized to partially settle the outstanding loan, and the residual amount being redirected to reestablish an acceptable collateralization ratio.
This arrangement serves as a safeguard, ensuring that borrowers maintain their collateral levels, while providing a protective barrier for lenders and generating a lucrative opportunity for liquidators.