DeFi Protocol

Stelltron builds a DeFi layer on top of physical energy trading. Participants earn yield by providing liquidity, borrowing tokens for arbitrage, and capturing trade commissions.

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Liquidity Pool (LP) Staking

Anyone can stake LT tokens into the shared liquidity pool. Stakers earn from three revenue streams:

Source	Rate
Base APY	8.5% annually (dynamic)
Trade commission	2.5% of every matched trade
Flash loan fee	0.3% per flash loan

Dynamic APY Formula

If TVL <= 10,000 LT:   APY = 8.5%   (base rate)
If TVL > 10,000 LT:    APY = 8.5% × (10,000 / TVL)
                        floor: 3.0% minimum

Rationale: Early stakers earn higher yields to bootstrap liquidity. As TVL grows, APY compresses toward a sustainable floor.

Yield Calculation

Yield = AmountStaked × (APY / 100) × (HoursStaked / 8760)

Example: 1000 LT staked for 48 hours at 8.5% APY
  = 1000 × 0.085 × (48/8760)
  = 0.466 LT yield

Yield accrues continuously. Unstaking calls HandleLPUnstake() which calculates yield from staked_at to time.Now().

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Flash Energy Lending

Flash loans allow borrowers to obtain tokens instantly for within-epoch arbitrage or peak-demand coverage.

Parameter	Value	Rationale
Fee	0.3% of borrowed amount	Low enough for arbitrage, revenue for LP
Maximum borrow	80% of pool TVL	Prevents pool drain
Collateral required	150% of borrow value	Covers default + protocol profit
Repayment window	5 minutes (300 seconds)	One "energy epoch"
If not repaid	Auto-liquidation	50% of collateral → LP pool

Use case: Borrower needs immediate tokens to cover a peak-demand trade. Borrows from pool, executes trade at high price, repays loan + 0.3% fee. Profit = price spread minus fee.

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Seller Staking Yield

Sellers earn a 5% APY simulation on the value of their locked sell orders while they remain open:

// In matching engine, on trade settlement:
yieldAmount := buyOrder.KwhAmount * dynamicPrice * 0.05 / 365

yieldRecord := domain.YieldRecord{
    UserID:    sellOrder.UserID,
    Amount:    yieldAmount,
    Source:    "LiquidityPool_Staking",
    Timestamp: time.Now(),
}

This incentivizes sellers to list energy (instead of holding tokens) by rewarding them for the period their energy was available to the market.

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Revenue Streams Summary

Revenue Stream	Rate	Destination
Trade commission	2.5% of settlement	LP stakers (pro-rata)
Minting fee	1% of tokens	LP pool
Flash loan fee	0.3% per loan	LP pool
Flash liquidation	50% of collateral	LP pool
Seller staking yield	5% APY on order	Seller

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Break-Even Analysis

Daily commission at 35 trades × 0.5 kWh × 5.5 XLM/kWh × 2.5%:
= 35 × 0.5 × 5.5 × 0.025
= 2.41 XLM/day in commission

Annual run rate: ~880 XLM in commission alone (~$88 at $0.10/XLM)

At higher trade volumes and energy prices, protocol revenue scales proportionally.

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Carbon Credit Economics

Each P2P trade avoids grid electricity consumption, generating verifiable carbon savings:

CO₂_saved = kWh_transferred × 0.82  (India grid emission factor: 0.82 kg CO₂/kWh)
CreditValue = CO₂_saved × 0.05      (0.05 XLM per kg CO₂)

Example: 0.5 kWh trade
  → 0.41 kg CO₂ saved
  → 0.0205 XLM credit value

Tree equivalent: 1 tree absorbs ~21.77 kg CO₂/year
  → A single household trading 10 kWh/day saves
     ~3 kg CO₂/day = ~1,095 kg CO₂/year
     = ~50 tree-equivalents/year

Carbon credits are recorded per trade in carbon_credits and queryable via GET /api/v1/ledger/carbon.