Asset Exchange Architecture

Core Exchange Components

The Astonic protocol facilitates sophisticated asset exchanges through its reserve system, serving dual critical functions:

1. Stability Maintenance

2. Asset Distribution

Primary Protocol Functions

Stability Mechanism:

• Arbitrage opportunity creation

  • If Astonic Dollar rises to $1.05, traders can mint and sell it for profit, increasing supply and bringing the price back to $1.

• Protocol-enforced exchange rates

  • The system automatically ensures that 1 Astonic Dollar is always worth $1, no matter market fluctuations.

• Market peg maintenance

  • If the price of Astonic Dollar drops to $0.95, traders can redeem it for $1 worth of collateral, reducing supply and pushing the price back to $1.

• Cross-market equilibrium

  • The protocol ensures that Astonic Dollar maintains its peg across different exchanges and platforms, balancing supply and demand.

Distribution System:

• Minimal slippage impact

  • Large trades in Astonic Dollar have minimal impact on the price, ensuring stability and fair execution.

• High-bandwidth expansion

  • The system can handle a large number of users and transactions without slowing down, ensuring smooth operations.

• Collateral flexibility

  • Users can deposit various assets like Planq or USDC to mint Astonic Dollar, providing flexibility in how collateral is managed.

• Efficient liquidity provision

  • The system automatically adjusts liquidity to ensure there’s always enough to support trades, maintaining smooth market operations.

Key Component Architecture

1. The Broker

• Exchange orchestration

  • The broker coordinates exchanges between assets, ensuring smooth transactions across platforms.

• Treasury management

  • The broker manages the protocol’s funds, ensuring sufficient reserves for liquidity.

• Trading limit enforcement

  • The broker imposes rules to prevent users from making trades beyond their set limits, maintaining system balance.

• Risk parameter monitoring

  • The broker continuously tracks market conditions and adjusts risk parameters to protect the system from volatility.

2. Exchange Providers

• Unified interface implementation

  • Exchange providers offer a single interface where users can seamlessly trade multiple assets.

• Swap pricing responsibility

  • Providers are responsible for determining fair swap rates between different assets.

• Protocol standardization

  • Exchange providers ensure they follow the same standards for compatibility and uniformity within the protocol.

• Interoperability support

  • Providers enable assets to be exchanged across different blockchains, ensuring smooth interoperability.

3. BiPoolManager

• First-generation exchange provider

  • BiPoolManager is an initial exchange provider in the system, enabling asset swaps with minimal slippage.

• vAMM pool evolution

  • The BiPoolManager evolves with new algorithms to improve the virtual Automated Market Maker (vAMM) pools.

• Advanced pricing mechanisms

  • The BiPoolManager uses sophisticated pricing models to ensure assets are always priced fairly and accurately.

• Enhanced liquidity management

  • The BiPoolManager optimizes liquidity to ensure there is always enough to support trades without affecting market prices.