My strategies on Nostra for farming DROP

Quick information

Nostra is a liquidity protocol on Starknet that allows users to trade or lend funds with the efficiency of a CEX. The project is raising $5 million from Tempus Labs to develop the ecosystem :money_mouth_face: . Now users have the opportunity to adjust activity in the project and get points for it :blush: .

The number of points earned can be viewed in the “Points” tab. There you can find your referral link and invite friends. You can earn 10% of your referral’s points, and if they invite someone else, you will also receive an additional 10% of their points.

:exclamation: SO INVITE YOUR FRIENDS AND TO MAKE STARKNET ECOSYSTEM GREAT AGAIN :exclamation:

Nostra announced the distribution of the $NSTR token. Total offer: $100 million NSTR, 100% of tokens will be unlocked, of which 11% are allocated for drops and 14% for future rewards. TGE promises June 17th, the snap of the participants is not ready yet.

Lend and borrow

In addition to farm points on Nostra, at the moment the best interest rates are on STRK rewards, which are calculated by dividing the LP balance tokens of each user by the total number of LP tokens in case of blocking in the provision of their tokens in lending.

I would advise depositing STRK tokens and borrowing against them in stablecoins - then you can exchange stablecoins for STRK tokens and deposit them again. However, you will have more APY on your initial balance and you will receive more STRK tokens. However, if the price of the STRK coin drops very significantly and your risk factor becomes less than 1, then your position will be liquidated! To calculate the token price at which your position will be liquidated, you need to divide the price of the token now by your risk factor

Pools

Pools are designed to exchange tokens among themselves - there are many different pools at the stake, but I would advise you to turn to the Pools with the highest profit with the Degen mark. By depositing into Degen pools, you provide liquidity within a narrow price range around the current market price. Make sure you understand the risks before proceeding.

  • Volatile Losses: Degen pools can cause LPs to experience much higher volatile losses compared to standard pools. This is because traders’ decision to match dollars at a 1:1 ratio can quickly deplete the liquidity of any asset if trading volume is high.

  • Oracle Risk: Degen pools use external oracle price feeds for the prices of tokens traded in the pool. Failures in the oracle can lead to incorrect price submission, which can lead to loss of liquidity for suppliers.

I personally provide liquidity in the STRK/ETH and ETH/USDC pools, however, the highest reward is accrued in the STRK/USDC pool - 176% at the time of writing.

:exclamation: IMPORTANT :exclamation:

$STRK tokens are awarded every 2 weeks, after which you can claim them to your wallet and send them to Pools or Lend and Borrow again :wink:

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