Nostra: Starknet's Largest DeFi Protocol in a Spotlight

Photo - Nostra: Starknet's Largest DeFi Protocol in a Spotlight
Nostra stands as the colossal decentralized application within the Starknet blockchain ecosystem, embodying a hybrid lending protocol with integrated decentralized exchange functionalities.
As of this writing, Nostra has secured a remarkable Total Value Locked (TVL) of almost $200 million, commanding 70% of Starknet's entire network resources. This achievement places it ahead in the TVL standings, outperforming other blockchains such as zkSync Era, Algorand, Manta, EOS, Fantom, and more.
TVL of the cryptocurrency platform Nostra on Starknet. Source:

TVL of the cryptocurrency platform Nostra on Starknet. Source:

Nostra at a Glance

Official figures reveal Nostra's reach and utility:

  • A robust user base exceeding 250,000;
  • Over 70,000 swap transactions successfully executed;
  • A TVL reaching $268 million ($196 million according to DeFiLlama);
  • An arsenal of 17 tokens ready for action.

The upcoming platform token, NOS, already appears on Cryptorank, hinting at a high airdrop probability. The platform's points system further solidifies this expectation.

Mastering Nostra

Engagement with Nostra, rooted in the Starknet network, necessitates specific wallets: Braavos, Argent X, or the Argent mobile wallet. Transactions require a sprinkle of ETH for fees and the assets you wish to utilize.

Nostra's array of offerings includes:

  • Staking STRK tokens for a 4% annual return;
  • A built-in token swap terminal, echoing the functionality of standard decentralized exchanges;
  • A proprietary algorithmic stablecoin, UNO;
  • Liquidity farming opportunities offering up to 160% annual yields;
  • A sophisticated lending and liquidity provision framework.

Considering the $3.5 million locked in the most prominent of the 20 liquidity pools (STRK/ETH), lending stands out as Nostra's flagship feature.
Liquidity pools on the Nostra protocol. Source:

Liquidity pools on the Nostra protocol. Source:

The allure of stablecoin holdings in DAI, USDT, and USDC yielding 25-30% annually, coupled with sometimes surpassing a 70% LTV ratio, is undeniable. The analytical dashboard reveals $174 million available for borrowing within Nostra's lending protocol.
Analytical dashboard of Nostra

Analytical dashboard of Nostra's lending platform. Source:

The Points System & Potential Retroactive Airdrop:

Nostra's "Points" section showcases a leaderboard, structuring users by the points they've amassed. According to the team, these points will critically influence the allocation of the NOS token among community members.

Nostra's points accumulation table. Source:

Point accumulation is facilitated through various activities such as:

  1. Staking STRK Tokens: Users engaging in STRK staking receive the nstSTRK wrapped token. Deploying this in lending or liquidity pools can amplify the usual points by a factor of ten.
  2. Holding UNO, which users can acquire in the “Try UNO” section by swapping USDT/USDC, contributes to point accumulation.
  3. Borrowing and Lending: With a special points boost for the users lending out UNO;
  4. Token swaps on the platform.

With over 250,000 users listed and the top scorer amassing more than 3.5 million points, the platform's engagement is palpable. The referral program further incentivizes point accumulation.

Weighing Nostra's Merits and Drawbacks:

Advantages include:

  • Exceptional liquidity coupled with minimal transaction fees;
  • A straightforward and intuitive platform interface;
  • A comprehensive suite of features and products, positioning Nostra as Starknet's all-inclusive platform;
  • Attractive returns from liquidity farming and lending activities;
  • The prospect of a retroactive airdrop for adopters.

The primary concern lies in Nostra's substantial dominance (70%) within the Starknet ecosystem, which could have widespread repercussions in case of a security breach or scam, affecting not just the project's reputation but also Starknet's overall TVL and the STRK token's market value. 

Users can only hope for the best, praying that such an eventuality never comes to pass. Meanwhile, they must strategically diversify their investments in accordance with their personal principles of risk management.