Astroport- a next-generation AMM on Terra
Astroport aims to be an upgrade to Terraswap. Here’s an overview of the protocol.
AMMs are a radical concept. A new and ambitious AMM is set to be deployed on Terra. Astroport aims to be an upgrade to Terraswap combining all the learnings and best practices of other AMMs and putting them into action.
Here's what it offers.
ASTRO lockdrop
With the upcoming launch of Astroport, their first phase called "The Lockdrop" is now live. Phase 1 will run from Dec. 14 to Dec. 21 & 75M $ASTRO will be distributed to users in this. In it, Terraswap LPs migrating liquidity to Astroport will receive a one-time ASTRO reward. visit :- lockdrop.astroport.fi
What is ASTROPORT?
Astroport is an AMM on Terra aiming to improve pricing & trade efficiency. Combining the use cases of multiple dApps into one, it will attract more liquidity. Its flexible architecture can accommodate pool types of any kind taking in the best innovations from the pioneers of AMMs.
Why does it matter?
AMMs are the building blocks of any DeFi ecosystem. Astroport enables users to choose different pool types within a single AMM system. That's huge as it makes all the asset types of Terra freely flow in a trustless and capital-efficient manner.
What is ASTRO ?
$ASTRO is the native token of Astroport which can be used to participate in governance activities and earn shared revenue from the protocol. $ASTRO is a token that could earn fees and have utilities designed around it.
What will be available on ASTROPORT ?
Astroport has created an amalgamation of different pool types for increased efficiency for both traders & liquidity providers. It can accommodate a wide variety of token markets through the following pools:
- Constant Product pools - pioneered by Dexes like Bancor and Uniswap.
- Stableswap Invariant pools - These capital-efficient pools are for pairs of tokens with an exchange rate that rarely deviates from 1:1.
- Liquidity Bootstrapping (LBP) pools - Popularized by BalancerLabs, LBPs work by adjusting the ‘weight’ of the two tokens in the pool.
The different phases
At launch, 110 million ASTRO governance tokens out of a total of 1 billion will be circulating. They will be distributed to 3 groups over the 3 different phases in the following amounts:
Phase 0- $ASTRO tokens will be airdropped to active users of the Terra ecosystem.
Terra $LUNA stakers & bLUNA Depositors on Anchor (12.5M $ASTRO)
Liquidity providers (LPs) on Terraswap (12.5M $ASTRO).
Phase 1 - An AstroDrop or “lockdrop” to Terraswap LPs who migrate Terraswap LP tokens from Terraswap to Astroport for a user-selected trial period.-
Phase 2 - An AstroDrop to those who supply $ASTRO and/or $UST to the $ASTRO/ $UST pool or the “Bootstrapping Pool” on Astroport.
Astral Assembly
Another interesting part of the protocol is the Astral Assembly. This is Astroport’s version of a DAO & will govern the project. Certain token holders ( xASTRO and vxASTRO) will have the power to propose & vote on integral infrastructural changes.
$ASTRO holders will be able to use the token in two ways while assuming governance responsibility:
- Users who hold xASTRO will have a say in governance matters and be able to vote on all proposals. xASTRO will be obtained by staking $ASTRO into the xASTRO pool.
- xASTRO holders may then lock their xASTRO in the vxASTRO pool to receive vxASTRO points, amplifying their governance power & receiving an additional share of trading fees. vxASTRO is inspired by @CurveFinance's impressive VeCRV model.
Astro Generators (Dual Farming)
Astroport offers another attractive feature- dual liquidity mining. When LPs provide liquidity, they only earn one kind of reward. Astroport addresses this with smart contracts that enable simultaneous “dual farming” of $ASTRO tokens, an innovative way to leverage its use case.
Conclusion
Astroport has attractive features that make it stand out from other AMMs in DeFi. However, it will be interesting to see what innovation Astroport truly brings to the AMM landscape on Terra after its launch.
Endnote
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