Astroport is a decentralized exchange for Terra 2.0 and Terra Classic that was built to improve pricing and trade efficiency.
With the Terra community signaling strong support for Terra 2.0, the Astroport smart contract system was re-deployed on the new network and astroport.fi was upgraded to maintain compatibility with this new Astroport instance in addition to maintaining compatibility with Astroport on Terra Classic.
Specifically, it support differenr types of AMM pools with different algorithm, including: Constant Product pools, Stableswap Invariant pools and Liquidity Bootstrapping (LBP) pools.
Astroport empowers users to choose different pool types within a single AMM system. Anyone can onboard and trade tokens permissionless.
Astroport brings outstanding improvements in the area of decentralized exchanges:
- Support for multiple pool types
- Advanced charting and analytics for liquidity providers as well as traders
- Shared fee structure for liquidity provider and staker. ASTRO is the token on Terra 2.0, which (if staked for xASTRO) will be used to govern and receive fees from Astroport on Terra 2.0. Users can stake ASTRO to unlock fee sharing and governance powers over the protocol. 100 million ASTRO tokens will be distributed over the first year of Astroport’s launch on Terra 2.0.
ASTRO is the native token of Astroport, which can be used to participate in governance activities and earn trading fees from the protocol. Constant Product pools have a fixed initial fee of 0.3%, of which 0.2% goes directly to Astroport LPs and 0.1% to the Astro Assembly to buy ASTRO. Astroport designed the ASTRO utility to increase proportionally to each user's long-term commitment towards the protocol while removing any barrier of access and allowing participants who just desire to obtain LPs fee rewards to do so.
Astroport allows participants who wish to get more involved can choose their level of commitment:
- Holders can choose to stake their ASTRO in the xASTRO pool, get xASTRO to access the Astro Assembly (governance), and get a higher share of fees as rewards (pro-rata from the fee entitled to LPs plus pro-rata from one-half of the trading fees entitled to the Astro Assembly). xASTRO generates more ASTRO rewards, thus increasing the voting power over time, and avoiding dilution.
- Holders can then choose to stake their xASTRO in the vxASTRO pool, amplifying their governance power, receiving a further additional share of the trading fee (the same for xASTRO plus a pro-rata from the other half of fees entitled to the Astro Assembly), and accessing other benefits such as boosted liquidity mining rewards. vxASTRO are non-transferrable.
