Partnership with Algem
We are delighted to join forces with Algem to launch a price oracle for nASTR. The oracle will enable easy integration of the liquid staked asset into DeFi protocols of the Astar ecosystem, boosting the token’s utility and use cases.
Algem is a native liquid staking DeFi dApp on top of Astar Network offering new ways for ASTR users and holders to earn more. Algem’s liquid staking solution allows users to continue to earn dApp staking rewards and increase their revenue by using tradable liquid nASTR tokens.
The goal of liquid staking is to solve problems such as liquidity and the efficiency of fund usage. Users constantly face a choice: protocol staking or farming/liquidity mining in dApps, and this solution allows users to obtain the preferences of both ways simultaneously.
We are delighted to enter a partnership with Algem to provide the Astar native liquid-staking solution with a price oracle for its nASTR token. The feed will enable easy integration of the liquid-staked asset into DeFi protocols of the Astar ecosystem, further boosting the token’s utility and use cases.
G, COO of Algem comments:
“We would like to thank the DIA team for collaborating with us and creating a price oracle for the nASTR token. Having quality and accurate price feeds is essential to develop Defi synergies with other protocols. Thanks to DIA, we will be able to push the use of Algem’s liquid nASTR token as collateral on lending and borrowing protocols and thus bring a new essential stone to the Defi of Astar network.
Price Oracle for Liquid Astar nASTR
The Algem team required a reliable and risk-minimized price feed for its own nASTR token to expand the utility of the mirror token in the Astar ecosystem. Due to the low numbers of trades, volume and liquidity of liquid staked derivatives on exchanges, standard market/trade-based price feeds for nASTR are relatively vulnerable to market manipulation-based oracle exploits.
To mitigate this risk, DIA’s customisable data infrastructure uniquely enables the creation of price feeds for Liquid Staked Derivates — LSDs, by employing a methodology based on fair price evaluation. The feed is developed by performing an on-chain, collateral ratio-driven check on the issuing protocol and leveraging an off-chain price feed for the base asset — ASTR.
How Does it Work?
To calculate the fair value-based price feed for nASTR the following methodology is used:
nASTR price = ASTR price * (ASTR in Algem’s staking contract / nASTR total supply)
- Calculate the price of ASTR using trade data from multiple sources and apply a Moving Average with Interquartile Range — MAIR methodology.
- Calculating the ratio between the deposited ASTR in Algem and the total supply of nASTR. To do so, we calculate:
- ASTR in the staking contract will be derived by calling the function read_staked_amount_on_contract on Astar DappsStaking contract
- nASTR total supply will be derived by calling the function totalSupply on nASTR token contract
Transparent and Customizable Delivery
DIA deployed a dedicated and tailor-made smart contract oracle to supply the most suitable price feeds for Algem. Besides the feed requirements laid out above, the oracle was set up with a custom update trigger.
All these tailor-made configurations facilitate the Algem protocol with the most suitable oracle for its needs. These requirements were transferred to DIA by submitting a DIA Custom Delivery Request (CDR) via the DIA Forum which is publicly available to everyone.
→ CDR #033: Algem | Price Feed
DIA is a multi-chain, end-to-end, open-source data and oracle platform for Web3. The DIA platform enables the sourcing, validation and sharing of transparent and verified data feeds for traditional and digital financial applications. DIA’s institutional-grade data feeds cover digital asset prices, NFT floor prices, lending rates, FX rates and more.
DIA’s data is directly sourced from a broad array of on-chain and off-chain sources at individual trade-level. This allows DIA feeds to be fully customized with regards to the mix of sources and methodologies, resulting in tailor-made, high-resilience feeds and thereby setting a new paradigm for oracles.
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