Hercules Announces Steer Protocol as Integration Partner
Steer is a decentralized, multi-chain compute protocol, built with the goal of addressing the challenges of infrastructure and data in building, securing and deploying decentralized web3 backends. Their tooling allows user-facing dApps like Hercules to automate tasks and build strategies with easy to use off-chain data.
Hercules endeavors to become the native liquidity layer for the Metis Andromeda network. With a composable, efficient liquidity protocol featuring seamless swaps, staking, real yield, and a launchpad, its flexible features are tailored to protocol-owned liquidity, allowing dynamic fees and customizable incentives packaged in a user-friendly interface.
Steer + Hercules: Quite Bullish
At one point in his demigod life, Hercules traveled to the end of the Earth to kidnap a herd of fickle cattle. In the process, he did a sidequest and created the Strait of Gibraltar. It’s nice that people in those days had time for such pursuits. Today, we try to be a little more focused.
Our Hercules, this Steer integration will enable sophisticated concentrated liquidity management strategies and make it available to everyone in DeFi. This powerful tool lets the market, and the individual user, decide intelligently the distribution of liquidity.
Concentrated liquidity is liquidity allocated to a specific price range, rather than equally across all prices. Traders are offered deeper liquidity around the current price of a given asset since this is where most of the trading volume occurs, and liquidity providers (LPs) earn more trading fees with their capital within this range. This design allows DeFi capital to be more efficiently utilized.
Providing liquidity to a price range is analogous to leverage. Why? Liquidity providers designating their assets for a specific price range commit, relatively, a fraction of the reserves which are used to calculate their proportion of the fees. The smaller the chosen range, therefore, the higher the leverage and the larger the proportion of fees the provider can earn. However, smaller ranges also lead to greater losses for the LP when one asset’s price changes relative to the other. The inverse also holds: larger ranges lead to smaller losses.
Steer protocol boasts an impressive library of liquidity strategies for pegged and volatile assets. Steer can use strategies such as channel multiplier, optimized pegged, high low channel, moving volatility channel, static super wide, and elastic stable; and these are considered “basic” strategies. Their more advanced tools are designed to leverage complex triggers, liquidity configurations, and strategic asset conversions to significantly amplify liquidity provider performance and market depth.
Wrapping Up
Steer is web3’s guide through the DeFi wilderness. With Steer, anyone can write cross-chain apps using more than 20 programming languages using Steer app engines, connect them to secured data sources off-chain or on-chain using the Steer data marketplace, and execute on any blockchain using Steer infrastructure. Hercules will make available some of Steer’s cutting-edge strategies directly on the Hercules’ frontend for greater user convenience.
