AstralFXS is a yield bearing derivative token built on stakeDAO’s liquid veFXS staking with sdFXS, Fraxswap V2 liquidity pools, BAMM lending pools, Curve liquidity and lending pools.

Similar to other yield bearing derivatives such as wstETH, AstralFXS tokens increase in value relative to FXS tokens over time.

How AstralFXS Works

1. FXS is converted to AstralFXS.

FXS tokens can be converted to AstralFXS tokens through frax.com

2. AstralFXS Protocol Generates FXS.

When the exchange rate of FXS to AstralFXS exceeds the current AstralFXS Target Peg Rate, the AstralFXS sub-protocol mints new AstralFXS and converts it to FXS.

FXS gained by the sub-protocol from selling AstralFXS is deployed into FXS generating strategies.

Similar to sfrxUSD, the AstralFXS protocol deploys FXS tokens to the highest yielding strategies available.

Currently, the top yielding FXS strategy is sdFXS staking with voting power delegated for increased yield.

3. Distributing AstralFXS Protocol Yield.

All yield generated from the AstralFXS Treasury yield is converted to FXS. Then:

10% of tokens are utilized for AstralFXS operational and development costs.

5% of tokens are transferred to the Astral DAO Treasury.

15% of tokens are compounded into the AstralFXS Treasury, which increases the yield generated by AstralFXS tokens over time.

70% are swapped to AstralFXS tokens.

80% of AstralFXS tokens acquired this way are burned. Remainder are held and deployed by the AstralFXS Yield Treasury.

4. Calculating the AstralFXS-FXS target peg rate.

Put simply, the Target Peg Rate of AstralFXS is calculated according to the amount of AstralFXS burned and the amount of AstralFXS in Circulation.

The value of FXS in the AstralFXS Treasury will always be greater then the value of AstralFXS in circulation if AstralFXS is at or below the Target Peg Rate.

The AstralFXS sub-protocol determines the current target swap rate of AstralFXS-FXS by the following calculation.

NPR = CPR + (1 - ACCR)

NPR: New Peg Rate

CPR: Current Peg Rate

ACCR: AstralFXS Circulation Change Rate

ACCR = AC ÷ (AC - AB)

AC: AstralFXS in Circulation

AB: AstralFXS burned since the last Peg update.

5. Maintaining the AstralFXS-FXS target peg rate.

When the exchange rate of AstralFXS to FXS exceeds the Target Peg Rate, the AstralFXS sub-protocol mints new AstralFXS and swaps for FXS until AstralFXS returns to the Target Peg Rate.

When the value of AstralFXS drops significantly below the Target Peg Rate, sdFXS from the AstralFXS Treasury are converted into AstralFXS tokens.

6. AstralFXS Sub-Protocol Owned Liquidity.

12% of the AstralFXS Yield Treasury is allocated to AstralFXS-FXS liquidity pools, including:

Fraxswap V2 LP, 0.04% fee rate.

Concentrated Liquidity, 0.25% - 0.75% fee rate.

7. AstralFXS Protocol’s FXTL Yield Distribution.

FXS acquired from FXTL points held by the AstralFXS Deployer and AstralFXS Treasury wallets will be utilized to buy and burn AstralFXS, directly increasing the relative value of AstralFXS to FXS tokens and the AstralFXS yield rate.

Important AstralFXS addresses.

AstralFXS Fraxtal Contract Address: 0x1cEf0646D967964eBEF954aadaD65481F6143319

AstralFXS Deployer.

AstralFXS Treasury 0xfBd998b643F812fa33820196cbb34DbF4F92F699

AstralFXS - FXS Fraxswap V2 Liquidity Pool.

AstralFXS - FXS 0.75% Fee V3 Liquidity Pool.