STRKUSDT - Breakout Setup

STRKUSDT

Charts are self-explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined.

1. What Is STRK / Strike

- Strike is a decentralized lending / money-market protocol on Ethereum.

- Users can supply assets (e.g., ETH, ERC-20s) and receive sTokens in return (like sETH). These sTokens accrue interest.

- Tokenomics:

• Max supply = ~6,540,888 STRK
  
• Some STRK is distributed via “liquidity mining” over time. According to the whitepaper, ~3.5 million STRK to be mined over ~8 years
  
• According to the Medium post, there was no ICO / token sale — STRK was distributed to users (mined) rather than sold in a public sale
  

- The protocol is open-source; its smart-contract code is on GitHub.

2. Strengths / Key Positives (Fundamentals)

- Decentralized Governance: STRK holders have real voting power; the Governor model enables scalability in decision-making.

- Proven Money-Market Design: Strike is based on a model similar to Compound, a well-established DeFi lending protocol, The idea of sTokens (interest-bearing) is simple and tested.

- Limited Supply: With a capped supply (~6.54M), there is some scarcity.

- Smart-Contract Transparency: The protocol’s code is publicly auditable, Governance processes are clearly defined (voting, timelocks).

3. Key Risks / Challenges

- Adoption Risk

- Governance Centralization Risk

- Emission / Distribution Risk

- Smart Contract / Protocol Risk

- Market Risk