Pricing
The price of STONE within StakeStone is derived from smart contracts, distinct from the prices seen on decentralized exchanges. When users deposit or withdraw assets in StakeStone, these transactions are executed based on an internal price determined by the contract, rather than by fluctuating DEX prices. For instance, if a user currently holds 1 STONE, they can withdraw approximately 1.0021 ETH via StakeStone's frontend.
How is STONE’s Price in the Contract Calculated?
The price of STONE within StakeStone’s smart contract is determined by two key factors: the total value of underlying assets in StakeStone and the current total supply of STONE. The contract calculates the price of STONE by dividing the total value of these underlying assets by the current total supply, providing an accurate and transparent valuation that users can verify on-chain.
Where Can I Find STONE’s Price?
Users can check the current price of STONE by accessing our dApp at stakestone.io. The exchange rate displayed on the dApp is also used for calculating withdrawals, ensuring consistency and transparency.
Why Are STONE Prices on DEXs and Information Platforms Different from StakeStone’s dApp?
The price of STONE on DEXs is influenced by the composition and depth of its liquidity pool. When liquidity is insufficient on a DEX, the price of STONE may become inaccurate, leading to a high price impact during swaps. Information platforms typically pull prices from these DEX sources, which may not reflect the true value of STONE as calculated by StakeStone’s smart contract.
This discrepancy between the contract price and the DEX price creates arbitrage opportunities. For example, if the contract price of STONE is 1.1 ETH, and a user purchases 1 STONE for 0.8 ETH on a DEX, they can then exchange that 1 STONE for 1.1 ETH on StakeStone, capitalizing on the difference.
To mitigate these discrepancies and stabilize the DEX price, additional liquidity will soon be added on Manta Pacific, which will help align DEX prices more closely with those displayed on StakeStone’s dApp.
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