🪙The $AST Token

$AST is Astra DEX’s main utility token. It has a starting rate that increases over time as more $AST tokens are paid out. $AST is also staked to receive fee rewards from the network and to vote on protocol changes. $AST has 2 major uses:

1. To stake for earning cyclical rewards in $AMB, and

2. To govern and control future allocations of $AST, alter fee structures, and other protocol changes

There is a finite starting amount of 15 million $AST. As Astra grows, AirDAO will decide when to drop more tokens on the market. Early adopters have the unique opportunity to provide liquidity and earn rewards while the protocol is still young and less populated, making their rewards more lucrative.

25% of trading pool fees on the Astra DEX and Marketplace replenishes the liquidity incentive program on the $AMB liquidity pair that $AST subsidizes. The rest is paid out as commission to liquidity providers.

Liquidity Pairs and Rewards:

The heart of Astra DEX's liquidity model lies in the concept of liquidity pools, each undergoing lock and unlock cycles for a 3 month timeframe, and can join later for a shorter time frame. These cycles introduce a rhythm to the ecosystem, providing liquidity providers with predictable timelines for rewards and engagement. When you stake into a liquidity pool, users lock their tokens for the remaining time the pool is active. At the end, users can either continue to restake or retrieve their initial currency. Users joining late will only lock their tokens for the remaining amount of time.

Single-Sided Liquidity Provision:

By simplifying the liquidity provision process, Astra eliminates the need for users to hold both assets in a trading pair. When a user contributes a single cryptocurrency to a liquidity pool, the DEX treasury dynamically provides the counterpart currency required for the trading pair. There will always be liquidity available because the single-sided pools have a finite amount of space and will never exceed what the preset liquidity cap is. Additionally, any amount of $AMB liquidity provided is always in relation to total $AST tokens so that there is always $AMB available to provide. EX) If the treasury has 50,000,000 $AMB, and there are 15,000,000 $AST tokens in circulation, there is a 10:3 ratio. This means for every 3$AST tokens staked, 10 $AMB liquidity provided.

Double-Sided Liquidity Provision:

The platform also offers two-sided liquidity. These pool function like a normal DEX liquidity pool. Users provide both currencies and earn rewards. These have no cap.

Set Rewards and Capped Liquidity:

For each liquidity pool, a predefined set of rewards is established, creating transparency for participants. Users will be able to see exactly what amount of each currency they will receive for providing liquidity. Simultaneously, there is a cap on the amount of liquidity that can be provided to the pool. Once this cap is reached, the pool is closed for further contributions. This gamifies the system in such a way that users are incentivized to engage with open pools before they are filled out.

The Astra ecosystem is endowed with $KOS, $HBR, $AMB, and $BOND, creating a warchest of various rewards that appeals to all kinds of users. This creates seamless synergy between Astra DEX and other ecosystem dApps like Kosmos, where users can earn in one place and spend in another.

Once this initial endowment is paid out, 25% of all protocol fees generated on Astra DEX will go to funding LP rewards.