Astrovault is a hybrid Automated Market Maker (AMM) and Decentralized Autonomous Organization (DAO). Astrovault incorporates slippage-free 1:1 trades alongside the traditional AMM model to leverage staking derivatives as base pairs. Staking derivatives are used as primary liquidity, allowing liquidity hosted to be staked and earn rewards as revenue for the AXV DAO. This revenue is then dispersed as Protocol Owned Liquidity (POL) and rewards, which are essential for the endurance of attractive yield and provides eventual independence from reliance on external liquidity provision. The slippage-free pools allow easy conversion from the derivative to the native asset plus cheap multi-chain stable swaps.
Astrovault is a novel adaptation of previous AMM models aligned to create sustainable token economics and designed to generate and capture continual value. AXV is built on Archway, an economically designed incentivized smart contract platform built on Cosmos Software Development Kit (SDK).
ARCH (the native governance token of Archway) and most other tokens in the Cosmos ecosystem run on a delegated-proof-of-stake inflationary model. By utilizing the CosmWasm-20 (CW-20) standard to create these staking derivative solutions for various supported inflationary tokens, the majority of liquidity provided on Astrovault will exist in tokenized representations of staked assets that are earning interest and securing the various Layer-1 networks in the Cosmos ecosystem.