Analysis Of LOCKDROP That Keep Falling


Within a single AMM, Astroport allows users to select from a variety of pool types while still leveraging Terra’s asset types. That means , Astroport brings liquidity to Terra tokens from all parts of the galaxy. Astroport has an open market, meaning that anyone can supply liquidity to one of two pools. Anyone can then trade against those tokens whenever they want. With Astroport’s smart contracts, LPs can also provide liquidity to earn ASTRO at launch. All of Astroport’s liquidity is programmable. Astroport is a next-generation AMM that will power one of the most valuable DeFi ecosystems on Earth.

Astroport has its own token called ASTRO, much like many other DeFi protocols do. A stake in the ASTRO pool grants holders voting rights on matters related to the ASTRO protocol and communities. ASTRO holders can increase this power by locking their ASTRO tokens for a period of up to two years, benefiting from an additional share of trading fees, and boosting mining rewards for generating liquidity.

What is a Lockdrop?

Lockdrops are used to distribute tokens to large numbers of participants or holders of a network. Token holders can claim both their locked tokens and the newly created ones after a certain period of time by using a smart contract that creates a new token in return for locking another token.

As part of the launch, 110 million ASTRO governance tokens will be distributed in three phases.

  • Phase 0 | AstroDrop: 25M ASTRO
  • Phase 1 | Lockdrop: 75M ASTRO
  • Phase 2 | Bootstrap ASTRO-UST: 10M ASTRO
Source: Lockdrop Phases Overview

Lockdrop can be divided into different phases as shown in the above diagram.

Phase 0 – Airdrop Claim : As we discussed above In the Phase 0 , A total of 12.5 million ASTRO tokens will be distributed to 2 different groups . LUNA Stakers and Terraswap LPs are eligible for an ASTRO Airdrop tokens . You can claim the 25 million ASTRO tokens if you were a member of either of the two groups above on Sept. 9, 2021. If you “pre-claim” your airdrop in phase 2, you will receive additional ASTRO tokens in phase 2 from the ASTRO-UST liquidity bootstrapping pool. Suppose if we miss and are not added tokens to the bootstrapping pool will become claimable and transferrable upon the launch of Astroport.  The Astroport DAO will receive tokens that are not claimed here.

Phase 1 – Lockdrop : Terraswap LPs will have the option during the first five days of Phase 1 to migrate liquidity to Astroport. After Phase 1 is complete, all who migrated liquidity will receive a one-time ASTRO reward. To receive ASTRO tokens, you must lock your liquidity on Astroport for at least two weeks. As your liquidity is locked on Astroport for a longer period, the more ASTRO tokens you will receive.

In order to participate in phase 1, you must have locked-in liquidity in Terraswap by the end of the first 5 days of phase 1 and migrate that liquidity to Astroport immediately. The only factors that matter are your percentage (%) of the total number of LP tokens and the howmuch time your going to lock your liquidity .

Deposits and withdrawals of Liquidity are allowed only within the first five days. On the 6th day deposits are closed.  On 6th day withdrawal of liquidity is limited to 50%. On 7th day the withdrawal amount decreases linearly, starting from 50% and decreasing to 0% at the end of the lockdown. Once Astroport launches, you can remove your liquidity from the pools when the lock expires, but you can still receive trading fees and rewards while your liquidity remains in the pool.

There will be ten pools eligible for migration and ASTRO. They will split 75 million ASTRO tokens. From the below given picture, we can see the current token distribution between ten pools.

Phase I Lockdrop Distribution

Phase 2 – Bootstrapping Pool: It start after the phase 1 , within the first five days of this phase, ASTRO and/or UST can be committed to the bootstrapping pool. Participants receive ASTRO tokens. There will be a total of 10 million ASTRO tokens distributed to the LPs who commit ASTRO and/or UST for contributing to the pool.

On 6th day we can withdraw up to 50% of migrated liquidity(UST) from the pool. On 7th day the withdrawal amount decreases linearly, starting from 50% and decreasing to 0% at the end of the lockdown. After Astroport was launched, your ASTRO-UST deposits would unlock linearly over three months. You would then be able to withdraw them or leave them to accrue ongoing ASTRO incentives and trading fees.

On the first five days of Phase 1 (Dec. 14, 2021 to Dec. 20, 2021) Terraswap LPs will be able to move liquidity to Astroport. A one-time ASTRO distribution will be sent to every person doing this within 24 to 48 hours after Astroport is launched on Dec. 28, 2021.

Below is a graph showing the price of ASTRO tokens after Astroport’s launch on a daily basis.

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