Yesterday, the Algem fundraising campaign kicked off using our unique mechanism called Liquid Loan. By depositing ASTR, users receive aASTR, which can then be used to boost earnings.
Let’s dive into the details of the aASTR token, how it works, and its use cases.
What is aASTR?
aASTR is the liquid token for the recently launched Liquid Loan. Users who deposit through the Liquid Loan product receive aASTR in a 1:1 ratio to their deposited ASTR. For example, if a user deposits 1,000 ASTR, they receive 1,000 aASTR.
From a technical standpoint, aASTR is a LayerZero OFT (Omnichain Fungible Token), which allows it to be transferred across supported networks seamlessly.
The Economics of aASTR
Although aASTR is minted in a 1:1 ratio to ASTR, the price of aASTR on secondary markets will likely differ from ASTR, especially during the initial stages of Liquid Loan. This is due to the fact that aASTR can only be redeemed for ASTR after six months. Without a mechanism to maintain price parity during the lock-up period, the price of aASTR on the open market may deviate from ASTR.
Economically, aASTR functions similarly to a zero-coupon bond.
However, there is no reason to worry—this does not affect users’ ability to reclaim their ASTR. Regardless of secondary market prices, users will always be able to exchange their aASTR for ASTR at a 1:1 ratio after the lock-up period ends.
Example:
A user buys 100 aASTR on the secondary market for 80 ASTR (1 aASTR = 0.8 ASTR) immediately after the Liquid Loan ends. After six months, the user can claim 100 ASTR using their 100 aASTR through the claim form on the Liquid Loan page (the aASTR is burned during this process). In this scenario, the user benefits from an arbitrage opportunity and gains profit.
This unique economic characteristic of aASTR opens the door to earning additional income while safeguarding the interests of ASTR depositors.
How to Use aASTR
The Algem Liquid Loan is conducted on Astar EVM, and initially, aASTR will be used within this network. Here are some of the use cases:
- Staking on Synstation
Users can deposit aASTR into the staking contract of our partner, Synstation. Stakers earn points that can later be redeemed for Synstation tokens. - Liquidity Provision on Arthswap (Coming Soon)
An aASTR/ASTR liquidity pool will soon be available on Arthswap. Users will be able to provide liquidity, earn trading fees, and receive farming rewards. - Farming Opportunities on Soneium (Upcoming)
After the launch of Soneium, additional farming opportunities with aASTR will be made available to users.
Don’t Have aASTR Yet?
Liquid Loan just launched yesterday, offering users incredible rewards. Don’t miss your chance to participate, earn aASTR, and maximize your income! Additionally, we’ve introduced a Referral and Deposit Contest with a massive prize pool (details available via the link). Take advantage of this opportunity and get involved in these exciting activities today!
About Algem
Algem is a decentralized application built on the Astar Network and offers two main features: liquid staking and liquid farming. As their names suggest, these two options let ASTR holders keep their assets liquid while putting them to work. Also, the liquid staking and farming solutions let users use Algem’s liquid nASTR tokens across Astar’s Defi ecosystem to earn staking rewards and make more money. In doing so, Algem supports other Defi protocols by providing liquidity and creating a sustainable and cooperative ecosystem on the Astar Network and Polkadot.
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