What is Stella (ALPHA)?

Deep Dive

1. Core Innovation: Aligned Incentives

Stella’s Pay-As-You-Earn (PAYE) model eliminates traditional borrowing fees. Instead, lenders earn a share of profits generated by borrowers’ leveraged strategies (e.g., liquidity pool farming on Uniswap V3). This ensures neither party benefits at the other’s expense—a common flaw in earlier DeFi lending protocols.

2. Product Suite

• Stella Strategy: Enables leveraged positions (up to 10x) on yield-generating strategies, with 0% upfront borrowing costs.
• Stella Lend: Lets users deposit assets (ETH, USDC) to earn yields from borrowers’ revenue. Lenders’ APY fluctuates with strategy performance, not fixed rates.

The protocol’s architecture integrates with decentralized exchanges (DEXs) like Trader Joe and Uniswap, allowing users to select risk-reward profiles via customizable price ranges.

3. Strategic Pivot

Following Binance’s delisting of ALPHA in July 2025, Stella shifted focus from its hybrid DEX (Stella Trade) to Stella Yields, prioritizing leveraged yield farming and liquidity provision. This reflects adaptability to market conditions while maintaining its core mission.

Conclusion

Stella reimagines leveraged DeFi by aligning user incentives and removing upfront costs, though its ecosystem evolution post-Binance delisting poses challenges. Can Stella Yields attract sufficient liquidity to sustain its novel economic model amid broader market headwinds?