Trading Limits

Stability Mechanism Overview

The Astonic protocol's stability relies on a dynamic supply management system through controlled asset exchanges with the Reserve. This sophisticated mechanism requires careful balance and precise control.

Exchange Rate Dependencies

• Collateral volatility impact

• Liquidity considerations

• Oracle update timing

• Risk management protocols

Evolution from V1 Architecture

Historical Context:

1. Original vAMM Implementation:

   • Dual-purpose bucket sizes

   • Price discovery function

   • Slippage-based limitations

2. Enhanced Trading Limits:

   • Separated functionalities

   • Increased bucket capacities

   • Reduced average slippage

   • Precise volume control

Multi-Tier Limit Structure

Time-Based Limits:

• L0 (Short-term):

  • 5-minute monitoring window

  • Inter-bucket update control

  • Immediate risk mitigation

• L1 (Daily):

  • 24-hour monitoring

  • Fail-safe mechanism

  • Aggregate flow control

Global Limit (LG):

• Perpetual monitoring

• Net flow restrictions

• Strategic volume control

• Governance oversight

Implementation Framework

• Smart contract integration

• Governance-controlled parameters

• Real-time monitoring

• Automated enforcement