Aetheria - An Astar ETH Reserve Mechanism

[ERC20s]

@you425

At present, the liquidity of the ASTR/ETH pair on Ethereum is around $6k, which is clearly insufficient for the purpose described here.

Ya, this is still a huge issue that needs to be addressed by the astar ecosystem..
We need to get people trading our token over there..

I think this mechanism would help to get people trading over there but currently it would not gain much interest while we’re all earning on astar.. We really need to move a large portion of our ecosystem over there and have things like astar staking on ETH..

Liquid staking ASTR discussion

Can we build liquid staking directly into the dapp staking portal? (A mechanism that is supported and backed by ASTAR). Staking via independent dapps can create multiple risks. Independent projects could neglect their project and make it difficult to unstake. Bad code could result in hacks. Malicious code could result in rugs. Multi-sigs could be socially engineered. Would be good if it was built directly into the dapp staking. Thoughts?

If we can get ASTR deflationary AND fully backed by stETH that is earning interest.. It would make ASTR even more deflationary..
If we was fully backed by ETH right now and the price of ASTR dropped 10% against ETH.. There would be an incentive to burn 10% of the ASTR supply ..

@you425

Does this mean buying ETH via an AMM and then using the remaining ASTR to provide liquidity?

Yeah.. Minting extra ASTR just to use to increase the pool size.. That can be easily be burned in the future..
Really depends how our ecosystem is going to look over there.. Maybe we are directly incentivizing people to pool their ASTR/ETH..

@you425

Even if the price of ASTR denominated in ETH continues to decline

So this is why I set a lower ASTR/ETH amount to start.. Starting with a 1:10 ratio as we accumulate ETH..
The reason being is; if ASTR drops 90% in 2 years then the floor would start sooner than expected.. And people can redeem their ASTR for ETH straight away.. Creating a floor price that would burn 10x the amount that we minted..

But if the price drops below the floor and we’re still minting and updating the ratio dynamically it can’t drop forever basically..

@you425

inconsistent with what Tokenomics 3.0

It is true that aetheria is not focusing on fast deflation.. but long term it will be more prosperous and more deflationary..

I’m more concerned about the long term prospects of ASTR if we don’t have liquidity to play with in the future. AI is moving fast. NFTs died. Many of the other 100,000s of altcoin projects have been rugged or hacked or disowned or discontinued or closed down because of operational costs. I think we should be realistic with the fact that ASTR could go to zero in 50 years without something like this..

I think maybe it’s something we can try and if it doesn’t work then the treasury can buy up the ETH and we shut it down..

But first we need to focus our expansion for our ethereum utility..
I think we should run a campaign to reward ASTR/stETH uniswap stakers the same percentage as if they was dapp stakers to see how much interest there is..