⚖️Price Stability

The main pillar of price stability comes from the possibility of redeeming $ASTX token for the value of ASTR. In other words, $ASTX is 1:1 pegged to the price of ASTR.

Another mechanism to support the price peg is the arbitrage opportunity offered by the minting and redeeming functions.

$ASTX is under peg

If the value of $ASTX token is less than the value of 1 ASTR, then anyone can purchase it on the open market and redeem it for approximately the value of 1 ASTR worth of value when there is a profitable arbitrage opportunity.

$ASTX is over peg

If the value of $ASTX token is more than the value of 1 ASTR, then anyone can mint it with the protocol for approximately the value of 1 $ASTX worth of value and sell it on the open market when there is a profitable arbitrage opportunity.