What is Astrolab Finance ?
Astrolab Finance is an omni-chain yield aggregator allowing users to deposit assets in pools located on multiple chains with just one click. Bridging, routing and compounding is done automatically. Astrolab lets users allocate their capital both safely and efficiently in a challenging multi-chain DeFi environment.
Astrolab leverages state-of-the-art cross-chain messaging technologies, allowing for communication between DeFi protocols on independent blockchains. As everything is done on-chain in a decentralized way, users always stay in full control of their capital. Deposits and withdrawals can be carried out at any time, in a permissionless and trustless manner.
Composability is one of the best features of DeFi, and Astrolab is being built with the long-term vision of fully merging with the EVM ecosystem. Users should, for example, be able to use their deposited capital as collateral to contract loans or to leverage their deposits even further. Astrolab sits at the start of your DeFi strategy, not the end.
These features will be supported by innovative tokenomics creating a positive feedback loop, also known as the ‘flywheel effect’.
Crates are the main product of Astrolab. They correspond to multichain, multipool vaults allocating assets across EVM chains. They are composed of different underlying assets, such as USDC, ETH, FRAX, and have different risk profiles, thereby allowing users to optimize their risk exposure.
After users have deposited their assets, they receive a proportional amount of Crate tokens. These serve as proof-of-deposit and can be redeemed at any time for their underlying value. Crate tokens follow the ERC-4626 standard, and can therefore be used as collateral in other DeFi protocols by users seeking to improve capital efficiency.
What is $ASL?
$ASL is the governance token for Astrolab Finance. The token is used to secure the protocol, distribute its revenue to holders and ensure the safety of the staked capital.
By staking $ASL, users can insure Crates while simultaneously earning a share of the protocol fees. If an insured Crate was to become exposed to an unexpected loss of funds, a share of staked $ASL would be set aside to compensate for the loss.
Earnings would start flowing to the affected crate, and as soon as the loss has been fully compensated, or after a certain amount of time has passed, locked $ASL would then be returned to holders.
This mechanism creates a snowball effect, where $ASL holders help improve the safety of the protocol, while users get costless insurance and a lower risk profile for their investment, attracting more liquidity.
Astrolab strongly believes that good governance comes with skin in the game and should align with the protocol's values - profitability and safety.