Position and token
Two instruments that behave differently. This is the distinction that matters most.
A participant deposits collateral and receives a position — a non-fungible token holding its own collateral. The position may be redeemed at face value, or closed, which issues transferable ASTRX tokens backed by a share of the shared pool.
A position entails no nominal loss under any circumstances: the deposited collateral is returned in full, and the cost of holding it is the opportunity cost of capital rather than the risk of loss. A token carries market risk: its price may fall towards the lower boundary of the corridor. The position is for saving without market risk; the token is for paying and trading.
The protocol is non-custodial. Collateral is held in the smart contract and may be reclaimed by its owner at any time. Collateral is exogenous — the backing consists of external assets rather than the protocol’s own token, so no mechanism for self-destruction of the reserve exists. In this the design differs fundamentally from algorithmic ones.
How it behaves
| Backing | Its own deposit, held in the contract, in the currency brought. |
| Redemption | At face value, in full, at any time. No fee. |
| Transferable | Yes, as a whole, on the secondary market; and it can be split. |
| Price behaviour | There is no price: the deposit is what it is. |
Schematic. Drawn for this page; not a screenshot.
The position is the instrument for keeping capital without market risk; the token is the instrument for spending and trading. Holding a position costs the use of the capital while it sits, and nothing else. Holding a token costs whatever the market decides, within the corridor.
Closing is the moment the two meet. A position created at a high mint price and closed adds collateral to the pool above the current backing, and the backing of every holder rises. Such a closing is never charged a fee, and that rule is outside the reach of any vote.