To understand Astroport, one must understand Terra. So here is what you must know about Terra. Terra is a stablecoin platform that works with more than 1.5 million merchants and users to process over a billion dollars worth transactions per month. The platform is missing something, if it seeks to scale its processing, it will require “a more programmable decentralized exchange” according to the Astroport team.
The platform seeks to increase its processing amount by 10 times or more and will require a more holistic solution to do so. The solution, presented by Astroport, is the decentralized exchange.
Astroport has been working for over two months to bring about a solution to Terra’s issue. The solution did have backing or support from Delphi Digital and IDEO CoLab Ventures. They collaborated with Terraform Labs, the South Korean company behind Terra, to bring about a new form of automated market maker.
Astroport will become the answer to help Terra scale its solutions with a newly imagined automated market maker that will power one of the more compelling ecosystems in the Decentralized finance sector.
The Terra platform and its ecosystem has been growing rapidly over the past three years and is expected to continue to grow over the next decade. It is a firm that has put forth a foundational layer with its stablecoin platform, adding to the money legos present within decentralized finance.
The Value Of Terra and How Astroport Comes Into the Picture
Terra is successful because of its TerraUSD (UST), a stablecoin that presents itself as one of the blue chips of the stablecoin segment of the crypto industry. Another entity, Mirror, a synthetic asset platform, has been able to base its success in the growth of TerraUSD (UST).
Meanwhile, Anchor, a savings innovation protocol, has also been able to bring about higher yield for those who seek to optimize yield with their Terra and similar stablecoins.
One can see that there are various entities interacting with the Terra platform that certainly adds value to users. As this ecosystem grows, Terra will reach a point where it needs the right element to scale, that is where Astroport comes in.
At the present, Terraswap serves as the automated market maker that connects Terra to DeFi. While it has absorbed over $400M in assets and moves over a billion in dollar volume on a monthly basis, Astroport sees much more activity taking place over the next few years.
Astroport should provide more utility to Terra participants and protocols. These forms of utility will range from novel curve support optimizing capital efficiency.
It will present a cleaner user interface that serves users, the general community, traders, and liquidity providers.
It will have a liquidity bootstrapping pool that enables projects to come about and form liquidity for their respective tokens without as much capital upfront.
Further, ASTRO will serve as the governance token, somewhat similar to MAKR for DAI.
The founders note “ASTRO is critical to Astroport’s long-term survival. We liken Astroport to a thriving space station or port city among the stars of DeFi. Our marketplace isn’t a centralized, top-down, sterile, corporate product. It’s a public good. It’s a marketplace that’s open to all. ASTRO will coordinate the efforts of everyone in the ecosystem.”
ASTRO is coming soon.
P.S – It would be a good idea to watch the larger trends in the macroworld and bitcoin. The cryptocurrency sector has seen a general decline in prices and it is likely to sink further after a few price jumps.