Astrovault: A Hybrid AMM and DAO Platform
Astrovault is an innovative platform that merges the functionalities of an Automated Market Maker (AMM) and a Decentralized Autonomous Organization (DAO). Designed to evolve the traditional AMM model, Astrovault introduces sustainable incentives and independent liquidity mechanisms to enhance the DeFi ecosystem. It introduces a unique approach to the AMM model by incorporating slippage-free 1:1 trades alongside the traditional AMM model. This design leverages staking derivatives as base pairs, allowing liquidity to be staked and generate rewards as revenue for the AXV DAO. This revenue is then distributed as Protocol Owned Liquidity (POL) and rewards, ensuring sustainable yield and reducing reliance on external liquidity providers. The platform also offers slippage-free pools for easy conversion and cost-effective stable swaps across multiple chains.
Astrovault operates on four core principles:
- Create Sustainable Value: Astrovault aims to establish a sustainable token economy by capturing and generating continuous value.
- Capture Value Sustainably: The platform is designed to capture value in a manner that ensures long-term sustainability.
- Create a Catalyst for Liquidity on Archway: Astrovault is built on Archway, an incentivized smart contract platform developed on the Cosmos Software Development Kit (SDK). This integration acts as a catalyst for liquidity.
- Facilitate the Growth of the Cosmos Ecosystem: Astrovault is committed to supporting and facilitating the growth and success of the broader Cosmos ecosystem.
Nebula and Plasma Pools
Astrovault introduces two types of AMM pools: Nebula and Plasma.
Nebula Pools: These pools utilize the traditional x × y = k market maker mechanism. Pairs on Nebula pools consist of CosmWasm-20 (CW-20) tokens based on Layer-1 staking derivatives, Layer-2 tokens on Archway, IBC-enabled Layer-2 tokens, and bridged assets from external ecosystems. All trading fees from Nebula pools are used to buyback and burn the AXV token.
Plasma Pools: These are no-slippage pools with multiple tokens, offering 1:1 swap ratios and scalable fees.
Tokenomics and Governance
The AXV token symbolizes Astrovault’s governance token. The platform also introduces the Gravitate trading incentive token, represented by the symbol GRVT8. Astrovault’s design allows for dilatory arbitrage, where assets are bought and sold for profit at different locations with a significant delay between actions. The platform also emphasizes the liquidity premium, which is the gap between the price and value of an illiquid asset with a known value.
Astrovault’s approach to liquid staking allows users to delegate their tokens to a service that stakes on their behalf without losing access to their funds. These funds remain in escrow but are not “locked” as they would be in a Proof-of-Stake (PoS) system.