Astroport
Astroport is a next-generation AMM for Terra that was built to improve pricing and trade efficiency. Better pricing and efficiency should help Astroport attract more liquidity, further improving pricing and efficiency in a self-reinforcing loop. That is key, as trade efficiency is what ultimately drives adoption and integration with other protocols.
Astroport Vision
Optimized to be flexible and adaptable, Astroport will attract deep pools with significant trading volumes. That means its launch will have implications for many other upcoming Terra 2.0 projects. It will do that by, among other things:
- Integrating liquidity mining programs for new Terra tokens including those that adopt dual rewards
- Generating key data/oracle prices for other projects including credit protocols like Mars
- Serving as the backbone for index products or baskets of tokens
- Supplying liquidity to wallets and trading aggregators that access liquidity from multiple DEXes
- Serving as the underlying liquidity layer for yield farming protocols
How Astroport LP incentives work
One of the issues that liquidity providers (LPs) face, is the decision of which platform to provide liquidity to, as the rewards might differ in amount or value. Astroport addresses this problem with special, proxy-based smart contracts that enable simultaneous “dual farming” of ASTRO tokens and governance tokens coming from another community seeking to incentivize LPs.
These proxy contracts are connected to the Astro Generator contract which allows liquidity providers to claim dual governance token rewards (both $ASTRO and tokens coming from other communities e.g ANC, MIR).
Integrating with the Astroport Generator will garner more liquidity for Terra projects and LPs will have a better user experience, with fewer steps and transactions.
Dual Liquidity Mining
Rather than depositing Astroport LP tokens directly in third-party staking contracts, LPs can deposit their tokens into one of Astroport’s ASTRO Generators. With the use of proxy contracts, the ASTRO Generators forward LP tokens into relevant third-party staking contracts. Therefore, LPs end up accruing two sets of rewards (both ASTRO and the third-party protocol tokens).
When an LP wishes to claim accrued dual rewards from a specific generator, (1) the ASTRO generator transfers their appropriate amount of ASTRO, and (2) the proxy contract claims third-party token rewards and sends these as well to the LP's wallet.
What is the token distribution for ASTRO?
The token distribution ensures that the wider Terra community will have a majority say in everything on Astroport. The community holds
- 110M ASTRO after the lockdrop(11% of the total supply).
- 49% of the supply goes to LPs over 69 years.
- 10% of the supply is reserved for the Astral Assembly (Astroport DAO).
- The rest is allocated to Astroport Builders, who have a 3-year lock-up period.
What is the unlock schedule for the Builder Tokens?
The Builder Tokens unlock over three years starts with Phase 1. After that, there is a 1-year cliff unlock for 1/3rd of the Builder Token allocation, followed by two years daily linear unlock for the other 2/3rds.
How is a 52-week lockup weighted vs. a 2-week lockup for LP tokens?
Locking LP tokens for 52 weeks will give a 4x ASTRO reward boost compared to locking for two weeks.
Token Astro
The Journey to Astroport starts now and we want you to get onboard. Your courage will be rewarded with Astroport governance tokens and power over the fate of the ship. Our voyage is separated into 3 different phases.
- Phase 0: An AstroDrop to verifiable TeFi ecosystem chads (determined based on on-chain data pre-dating this article)
- Phase 1: An AstroDrop or “lockdrop” to Terraswap LPs who migrate Terraswap LP tokens from Terraswap to Astroport for a user-selected trial period¹; and
- Phase 2: An AstroDrop to Astrochads who supply ASTRO and/or UST to the ASTRO/UST pool (aka the “ASTRO-UST Bootstrapping Pool”) on Astroport
At launch, 110 million ASTRO governance tokens (out of a total of 1 billion) will be floating or “circulating”. They will be distributed to three groups in the following amounts:
- Phase 0 | AstroDrop: 25M ASTRO
- Phase 1 | Lockdrop: 75M ASTRO
- Phase 2 | Bootstrap ASTRO-UST: 10M ASTRO