Astroport on SEI

Astroport is the central space station of the DeFi solar system, where travelers throughout the galaxy meet to exchange assets in a neutral marketplace. The philosophy behind Astroport is simple:

Enabling decentralized, non-custodial liquidity and price discovery for any crypto asset.

Astroport prioritizes flexibility, combining various specialized pool types and routing seamlessly across them. Please read the mission briefings on the following pages to make your trip to the station (https://astroport.fi) as comfortable as possible.

Astro Pools🚀

• Early AMM systems used the same xy=k algorithm for determining token prices based on the ratio of the two tokens in the pool. As DEXes have matured, many new algorithms have emerged, each with its own set of tradeoffs.

• Different ‘token markets’ have different properties and characteristics; therefore, different pool types can be more or less appropriate for a particular token market. Choosing the appropriate pool type for a given token market can increase efficiency for both traders and liquidity providers. Some factors that may affect pool type choice for a target token market include:

1. Pair correlation: How the fair market prices of the two target tokens tend to move relative to one another
2. Pair volatility: The magnitude and frequency of fair market price fluctuations in the two target tokens
3. Market locality: Whether there are similar token markets to the target token market, and their sizes relative to the target token market
4. Market maturity: How well the market understands the values of the two target tokens
5. Lifecycle stage: Whether the target tokens are pre- or post-liquidity, Astroport allows for the following pool types, which enable Astroport to accommodate a wide variety of token markets:

• Constant Product Pools
• Stableswap Invariant Pools
• Passive Concentrated Liquidity Pools

In addition, Astroport has a flexible architecture that allows builders to create new pool types that fit seamlessly within Astroport, with minimal changes to core protocol code.

Stableswap Pools🔃

There are some situations where the xy=k formula may not be the best choice to provide the best possible execution for traders. For example, this is the case for pairs of tokens with an exchange rate that rarely deviates from 1:1.

In cases like these, stableswap AMMs are much more capital-efficient than their constant product counterparts, since they amplify liquidity to facilitate trades around the 1:1 target exchange rate.

How Stableswap Invariant Pools Work​🧐

Stableswap pools are the middle ground between constant product pools and constant price pools. A constant price pool is similar to a constant product pool, but uses a constant sum formula Rx+Ry=k, resulting in a constant price ∆x / ∆y = 1.

The stableswap invariant algorithm uses an amplification parameter (A) that determines how close the stableswap curve should be to the constant product curve; an amplification value of 0 (A = 0) achieves results identical to the constant product pool algorithm; higher values of A push the curve closer to the constant price curve, resulting in lower slippage for exchange rates close to 1:1.