We are proud to announce that Adapter contracts are coming to Algem. Adapter contracts will replicate the partner DeFi dApps interface on the Algem website.
Launching this contract will make it easier for Algem users to supply and utilize the $nASTR they receive for staking $ASTR on Algem on various partner dApps without going to their websites.
This corresponds with our vision to keep Algem users liquid while they earn the best yields possible with an easy-to-use interface.
An Adapter is an intermediary contract between the user and the liquidity-providing platform, such as a DEX like Sirius Finance.
The adapter contract will receive $nASTR tokens and proxy the actions to the liquidity-providing media. Once locked in the adapter contract, the balance cannot be changed unless removing the liquidity. Users can transfer tokens into the Adapter contract through a single transaction.
Why do we need Adapter contracts?
- Flashloan protection via the buffered implementation: Several improbable scenarios exist when staking rewards can be boosted retroactively through the LP tokens. For example, a user can use a flash loan to claim the rewards and receive significantly more that way, returning the LP tokens at the end of the transaction. This risk will rise in the future when more Defi dApps propose flashloan services.
- Protection from LP manipulations: Some bots could monitor the mempool and switch tokens between their accounts in an attempt to artificially increase their reward amount
- Improved user experience such as:
- Users no longer need to visit multiple websites to add their tokens to an additional dApps;
- Users require fewer actions for the whole process of depositing and withdrawals of tokens;
- Users can read all of the balances in one place;
- In the future, users can choose the DEX they want to interact with and see the statistics through Algem directly.
- More precise reward calculation and higher platform security for users.
- Protection from the possibility of draining funds from or bankrupting the LP-provider contract.
- Not all dApp can support $nASTR for technical reasons. Among these are dApps such as AstridDAO and Arthswap, important for the Astar ecosystem.
When do Adapter contracts launch on Algem?
The Adapter contract for AMMs is fully developed, and we await the completion and reports of the audit. We expect to launch an Adapter for Sirius Finance and Kagla finance next week and an adapter for Arthswap the following week. We will release a complete guide for users on the day of the launch of the Adapter contracts.
Algem is a dApp built on Astar Network and offers two main features: liquid staking and liquid lending. As the name implies, these two solutions enable ASTR holders to remain liquid with their assets while putting them to work. In addition, the liquid staking and lending solutions allow users to accumulate staking rewards and increase their earnings using Algem’s liquid nASTR tokens across Astar’s Defi ecosystem. In doing so, Algem supports other Defi protocols by providing liquidity and creating a sustainable and cooperative ecosystem on Astar Network and Polkadot.