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

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