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Utility

ASTROโ€™s utility will materialize via xASTRO and vxASTRO. As mentioned above, each of these tokens entitles their holders to different degrees of fee-sharing and governance power. While the xASTRO token represents one (relatively modest, short-term) level of commitment within the Astroport ecosystem (but still more commitment than simply holding ASTRO) and comes with one (relatively modest) level of governance power and fee-sharing, the vxASTRO token represents a higher level of commitment and thus a higher level of governance power and fee-sharing.

  • Fee-share: xASTRO will be a transferable token that automatically accrues additional ASTRO from the Astral Assemblyโ€™s portion of trading fees, pro rata based on the number of xASTRO in existence. While adjustable by ASTRO governance, initially half of the Astral Assemblyโ€™s portion of trading fees will accrue to xASTRO holders.
  • Governance: xASTRO holders will be able to vote on and submit proposals to Astroport governance, including incentives allocation voting (more on this in the following section).
vxASTRO Utility
vxASTRO, on the other hand, wonโ€™t be tokenized. Instead, vxASTRO can be thought of as points that will allow users to leverage their xASTRO to access additional benefits within the Astroport ecosystem, specifically:
  • Increased governance power: vxASTRO holders will have increased voting power within the Astroport ecosystem. Specifically, the voting power for a given user will be calculated as follows:
where i represents a given user, Locked xASTROi represents the amount of xASTRO the user locked to receive vxASTRO and xASTROi represents any unlocked xASTRO the user might also happen to have.
  • More protocol fees: The other half of the Astral Assemblyโ€™s portion of trading fees will be distributed pro rata to all vxASTRO holders based on the number of vxASTRO then in existence. Itโ€™s worth noting that, in their capacity as xASTRO holders, vxASTRO holders will also receive some of the Astral Assemblyโ€™s portion of trading fees that flow to the xASTRO pool (as by definition theyโ€™re also xASTRO holders).
  • ASTRO Generator Boosties: vxASTRO holders who are also Astroport pool LPs mining ASTRO through the ASTRO Generators will receive a boost (from 1x to 2.5x) to their share of ASTRO emissions. This creates a virtuous cycle in which liquidity providers (which inherently have one form of skin-in-the-game) can receive additional governance power if they also lock xASTRO to become vxASTRO holders, and vxASTRO holders (which inherently have another form of skin-in-the-game) receive additional governance power if they also provide liquidity to pools. The final boost for each LP/vxASTRO holder will depend on several factors, including: the percentage of LPs engaged in ASTRO liquidity mining through the ASTRO Generators, the liquidity provided by the user, which pool(s) the user provided liquidity to, the overall liquidity level(s) of that pool (or those pools), how much vxASTRO the user holds and the total amount of all vxASTRO then in existence. Specifically, for a given user i, the boost will be calculated as follows:
The following figure helps visualize the staking dynamics and the different set of benefits explored in this section and the previous one.
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ASTRO Utility
xASTRO Utility