Use Cases
Real-world applications of Stormbit for different user types.
Featured Guides
Detailed strategies for popular Stormbit use cases:
Leverage stETH — Amplify staking yields with Lido's stETH
Restaking with Symbiotic — Option-priced lending with slashing-backed insurance
Elixir Case Study — How Stormbit would have prevented a $96M collapse
By User Type
Node Operators
Node operators stake significant capital but need liquidity for hardware, operations, or tax obligations. Traditional options force them to unstake (losing rewards) or accept liquidation risk.
Stormbit solution: Borrow against stETH at high LTV (up to 95%) with risk transferred to lenders during the term.
Collateral
100 stETH (~$240k)
Borrow
95 ETH at 95% LTV
Duration
40 days fixed
Rate
2.2% (0.23 ETH total interest)
Liquidation risk
Risk transferred to lenders during term
Key benefit
Focus on node performance, not risk management
Advanced strategy: 10x leverage for amplified staking yield (15-20% APY on initial capital).
DAOs & Treasuries
DAO treasuries hold significant assets but need liquidity for grants, salaries, and operations without selling (avoiding tax events and governance complexity). Traditional lending creates liquidation risk that's difficult to explain to token holders.
Stormbit solution: Treasury financing with volatility-compensated costs and risk transferred to lenders during term.
Treasury holds
10,000 ETH (~$24M)
Need
$5M for Q1 operations
Borrow
$5M USDC against 2,500 ETH
LTV
52% (conservative)
Duration
90 days
Total cost
$225k (18% APR)
Key benefit
Governance can approve with certainty
Use case: Fund $1M in grants, repay from protocol revenue over 90 days, keep ETH exposure entire time.
Market Makers
Market makers need significant capital for inventory with costs locked at origination for P&L modeling. Liquidation during volatile periods disrupts positions and ruins strategies.
Stormbit solution: Inventory financing with costs locked at origination and risk transferred to lenders during volatile periods.
Strategy
ETH/USDC market making
Collateral
500 ETH
Borrow
$1M USDC for inventory
Duration
14 days (rolling)
Cost
$9,600 per 2-week period
Key benefit
Focus on spreads, not risk monitoring
Short durations provide flexibility to adjust, fixed costs enable accurate P&L calculations.
Yield Farmers
Yield farmers want to maximize returns on stable assets using leverage, but traditional platforms require constant monitoring and carry liquidation risk.
Stormbit solution: Leveraged yield on stable assets (RWAs, T-bills) with risk transferred to lenders.
Asset
T-bill token (sTBT) yielding 5%
Initial capital
$100k
Leverage
5x → $500k exposure
Borrow cost
4% on $400k debt
Duration
30 days
Net profit
$740 (~9% APY vs 5% unleveraged)
Key benefit
Amplify stable yields, set and forget
No price volatility (stablecoins/RWA), cost locked at origination means volatility-compensated spread.
NFT Holders
NFT holders have valuable but illiquid assets and need liquidity without selling. Traditional NFT lending has high rates and complex terms.
Stormbit solution: P2P NFT-backed loans using the ERC721 module.
Collateral
BAYC #1234 (floor ~50 ETH)
Borrow
30 ETH (60% LTV, conservative)
Duration
30 days
Process
P2P (lender evaluates rarity)
Key benefit
Custom valuation, keep NFT upside
Lenders can assess rarity and traits directly. No oracle needed. Relationship-based terms.
Institutional Investors
Institutions want DeFi yields but cannot accept liquidation risk. They need volatility-compensated returns for reporting and clear risk parameters for compliance.
Stormbit solution: Institutional-grade fixed income with manual loan approval (P2P hook).
Deposit
$10M USDC
Collateral accepted
wstETH only (blue chip)
Max LTV
85%
Expected returns
8-12% base + volatility premium ($100k/month)
Control
Manual approval per loan
Key benefit
Explainable to risk committees
Clear fee structure, rates locked at origination, maturity-only liquidation, audited contracts — transparent risk parameters with manual controls.
Arbitrageurs
Arbitrage opportunities require quick capital deployment with costs locked at origination and no position disruption mid-trade.
Stormbit solution: Term-based arbitrage funding with pre-priced time window.
Opportunity
stETH at 0.5% discount to peg
Strategy
Borrow ETH, buy stETH, wait for peg
Duration
7 days
Borrow cost
0.04% (2.2% APR × 7/365)
Expected profit
0.46% (~24% APR equivalent)
Key benefit
Time to wait for peg recovery
Risk transferred to lenders if stETH drops further. Simple risk model: profit = peg recovery - cost locked at origination.
Identity-Gated Lending
Traditional DeFi is over-collateralized only, with no way to incorporate credit or identity, excluding users without crypto collateral.
Stormbit solution: Credit-score-gated lending via zkTLS attestations (Attestation module).
Collateral
Income attestation (zkPass)
Proof
"Income > $100K" (privacy-preserving)
Borrow
$10k USDC (under-collateralized)
Duration
30 days
Key benefit
Privacy-preserving under-collateralized loans
Use cases: Employee loans (company attestation), DAO contributor loans (contribution proof), real-world credit integration.
Summary
Node Operators
Leverage staking
Focus on nodes, not risk
DAOs
Treasury financing
Governance-friendly
Market Makers
Inventory financing
Volatility-compensated costs
Yield Farmers
Leveraged yield
Set and forget
NFT Holders
Liquidity without selling
Custom P2P terms
Institutions
Fixed income
Risk committee approved
Arbitrageurs
Opportunity funding
Time to execute
Identity users
Under-collateralized
Privacy-preserving
Common thread: Oracle-immune protection + fixed costs = term certainty.
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