DIA Partnership with Algem
DIA Partnership with Algem, a native liquid staking DeFi dApp on top of Astar Network offering new ways for ASTR users and holders to earn more.
They partnered 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. As DIA announced its Partnership with Algem.
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?
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
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.
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.