Welcome to this post, where we are going to see how Astroport, the main DEX on the Terra network, works.
Astroport has become the main decentralized Exchange on the terra network since its launch, passing terrswap by offering a better interface and better options for users. While terraswap was simple and easy to use, there were many aspects that were missing and necessary for many to have a decentralized Exchange, and for this reason, astroport has achieved such a rapid growth when it was launched.
Let’s see the operation and those aspects that you should know if you want to use astroport, either to exchange cryptocurrencies, or to provide liquidity and get a good annual % with your cryptocurrencies.
What is Astroport
Astroport is the central space station of the Terra solar system, where travelers like you from all over the galaxy gather to exchange goods. Astroport’s philosophy is simple and efficient:
Astroport prioritizes flexibility above all else, combining several types of specialized reservations and routing seamlessly through them. And to make your trip to the station as comfortable as possible.
The most crucial primitive of any DeFi ecosystem is the asset exchange functionality. Automated market makers (AMMs) like Astroport have emerged as the winning architecture to achieve this in a decentralized, non-custodial manner. Astroport allows users to choose different pool types within a single AMM system. Anyone can come on board and trade tokens without permission. There is no captain or bureaucrat to stop them. The station will be owned exclusively by its users.
Astrosport offers a better automated AMM or market system than terraswap, plus a much more intuitive interface and relevant information when you trade tokens. In addition to being able to see the annual % you get for contributing liquidity to the platform, an aspect that you could not see in terraswap, and you had to calculate or guess with the rewards received.
This has made most users who used terraswap, now use astroport, either to exchange cryptocurrencies with maximum information or if they want to provide liquidity in the form of LP in the Terra network, they can know what % they are generating with that LP.
The first thing we find is the swap. With a very simple and intuitive interface. At the top you indicate the token you want to use, and at the bottom the token you want to get. You can click on the token to search for it, and in case you do not find it, you can paste the terra network contract of the token to see if it appears and there is liquidity to buy it.
This information can be found in pages like coingecko or coinmarketcap, where you can see in contract the contract that you must paste to detect the token. Indicate the amount, and you can see the exchange rate of the two tokens in Exchange, and the impact of the price. Under swap tokens, you will also see the commission you will have to pay for swapping the tokens.
With all the information checked, click on swap and confirm the transaction in your wallet. This way, you will have the other token in your wallet. At the top right you can see a settings wheel, and adjust the slipping tolerance, although it is recommended to leave it as it is usually at 0.50%.
One of the most complained about aspects of terraswap was the lack of information in the pools, such as the % you received in each pool and the different pools. Fortunately, astroport has solved this problem and you will be able to find all the necessary information in each pool in a clear and easy to use way.
Here, the first thing we find is a panel with the information of all the pools, such as the total liquidity there is, the volume in the last 24 hours and the price of Astro. Followed by my pools. If you don’t have any liquidity pool, you can find them all under other pools.
Here, you can see the different LPs with their annual % that you receive for providing liquidity from those two tokens in combined APR. Also, the total liquidity of those two pairs and the volume in the last 24 hours. Next to each pool, you will be able to see the commission that the protocol has and is distributed among the users that contribute liquidity with their LPs. If you don’t have the tokens you will see a get tokens button, and in case you do have tokens to create the LP, an add liquidity button.
Once you find the pool you are interested in, and you have the pool tokens, click on add liquidity. Here, you will see the typical panel to create a LP in provide. You should enter the same amount in a 50-50 ratio for both tokens. Below you will see a bar to adjust the % you want to place as LP of the two tokens.
Once you have indicated the amount, under add liquidty, you will see a box that is checked for stake LP Token, so you can place your LP in stake directly and not have to do it manually. I recommend you to check this box if it is not checked. Click on add liquidity, confirming adding liquidity, confirm in your wallet and that’s it. Below you will see the commission for adding liquidity which is very low.
Now, in my pools you will be able to see your LP Tokens and control the LP from here by clicking on manage. You can click on unstake and undo the LP Token at any time to get back the two tokens you have contributed as liquidity.
Here, you can see your LP Tokens that you created in the astroport launch phase and are locked. From here you can claim the amount of Astro or other tokens that your locked LP Tokens have generated, and once the lock time you specified has passed, unlock it.
If you have an LP with ASTO-UST, you can unlock an amount in relation to the total amount you set. You will see in unlockable liquidity the amount that is available to unlock from the total you contributed as an LP.
To claim your rewards, either from pools or from LPs you have locked liquidity, if you click on the top right next to your wallet address and the amount of UST you have, you will see the accumulated rewards to claim. These can be the airdrop they gave, or what you have been generating with your LP Tokens. You will be able to see in rewards breakdown the rewards you have and you can claim them at any time. Click on claim rewards, confirm in your wallet and that’s it. This way you will already have the rewards you have generated within the platform.
I hope it has helped you to know how the main DEX of the terra network, astroport, works. Remember that if you don’t have an account with binance, you can create one below.