ASTROPORT
Last updated
Last updated
Astroport is a decentralized exchange that supports both classic (x*y=k) swaps and stable swaps (x+y=k). The main innovation of Astroport is the Astro Generators.
In order to ensure liquidity on the exchange and prevent slippage for users, liquidity providers place tokens X and Y in a ratio that corresponds to the current price (Rx/Ry). The added liquidity increases the value of k. Intuitively, with more liquidity in the reserves, traders will receive a higher return (∆y) for a given input (∆x). This way, increased liquidity reduces slippage during trading.
However, at times, a user may need to exchange asset X for asset Y when the ratio of their prices is close to 1:1. For this, we need a stable swap. A stable swap is similar to a classic pool, but uses the constant sum formula Rx + Ry = k, resulting in a constant price ∆x/∆y = 1.
Astroport also supports limit orders for both buying and selling.
The project was first announced on July 12, 2021 in an article on Medium.
The project does not have a fund and the team is anonymous.
Before the official launch of Astroport on December 28, 2021, token drops were held in various communities and forums to increase awareness and generate excitement about the project.
Astro (ASTRO) is a cryptocurrency that was created as part of the Terra ecosystem. It was initially distributed through three different mechanisms:
- Airdrop ASTRO: Verified users of the Terra ecosystem, such as Terraswap, Mirror, Anchor, etc. (total distribution: 25,000,000, or 2.5% of the total ASTRO supply).
- Lockdrop 1: Terraswap LP, where users transferred Terraswap LP tokens from Terraswap and locked them in Astroport for a chosen trial period (total distribution: 75,000,000, or 7.5% of the total ASTRO offering).
- Lockdrop 2: Initial ASTRO-UST pool: Participants who contributed ASTRO and/or UST to the initial ASTRO/UST pool to provide initial liquidity for ASTRO and to determine its price (total distribution: 10,000,000 ASTRO, or 1% of the total ASTRO supply). These ASTRO tokens could only be obtained after the official launch of Astroport on December 28, 2021.
On December 28, 2021, the Astroport protocol was officially launched and participants were able to unlock and trade their ASTRO tokens. In a very short period of time after the launch, Astroport received a large influx of TVL and rose to a market valuation of $500M.
In May, Terra suffered a crash and was subsequently re-launched as Terra 2.0. As a result, the ASTRO token was renamed to ASTROC and the new version of Astroport was deployed on Terra 2.0.
At present, the project is gradually integrating with other IBC networks.
When you add liquidity to an LP, you always receive a share of the fees generated by the trading activity on that liquidity pool. These fees are paid in the underlying token of the LP (e.g. ASTRO), and the exact amount of fees received can vary depending on the size of your LP share and the overall trading activity on the exchange.
Astro Generators is a program that allows connecting to other protocols to the Astroport liquidity pools. In other words, by providing liquidity in the LP Astroport, you are also providing liquidity in other protocols that are connected to the Astro Generators.
In turn, Astroport receives greater interest from users, other projects receive liquidity, and liquidity providers in Astroport receive much higher returns.
ASTRO token ownership gives you access to participate in the Astral Assembly - the DAO that makes decisions on the protocol's development. This includes deciding whether changes will be made to smart contracts, and how the protocol's treasury will be managed.
To become a member of the Astral Assembly, you need to stake your ASTRO and receive xASTRO in return. The amount of xASTRO on your wallet represents your voting power in the management.
One third of all the fees collected by Astroport go to the owners of the xASTRO token.
xASTRO can be exchanged 1:1 for ASTRO at any time. There is no lock-up period for unstaking, and the withdrawal is instant.
After the lock-up, the community will have 110 million ASTROC (11% of the total supply), and another 49% of tokens are meant to be distributed among LP Astroport over 69 years. 10% of the reserve is reserved for the Astral Assembly. The rest is allocated to the Astroport Builders who have a 3-year lock-up.
The total supply of ASTROC is 1B.
Essentially, the tokenomics of ASTRO (Terra 2.0) and ASTROC (Terra classic) are nearly equivalent with the exception that ASTRO has become 10% larger. The token distribution was designed in such a way to allow a wider Terra community to have a say in everything that happens with the Astroport. After the airdrop, the community had 133 million ASTRO (12% of the total), and another 45% of the tokens are designated for distribution among LP Astroport over the course of 69 years. 16% of tokens are reserved for the Astral Assembly. The rest is allocated to the Astroport Builders, who have a 3-year lock-up, starting July 1, 2023. First, the team will receive 1/3 of the total supply, the following 2/3 will be unlocked linearly over 24 months.
The maximum supply of ASTRO is 1.1B.
ASTRO's maximum offer is 1.1B.
The charts are presented schematically:
At the moment, the team is gradually transitioning to other Cosmos networks. Astroport is actively appearing in Sei governance. You can also see Astroport on the Osmosis Ecosystem dashboard.
UPD: On March 8, 2023, the project was announced on the mainnet in Injective.
The Astroport team has faced significant problems due to the collapse of Terra, but they are still building and their plans for the future are impressive.
