Overview

Astar Network is the fastest-growing multi-VM smart contract hub on Polkadot and Japan's leading layer 1 blockchain. This document is Astar's proposal for Phala Network after talking during our last meeting October 3, 2022.

Main Objectives

Our main objective with this proposal is to build up the liquidity of $PHA assets on Astar Network. During our last meeting and meetings before, Phala Network and Astar Network were very aligned with the vision of Web3 and the future of WASM and Polkadot.

How will Astar benefit from this proposal?

• Build up the $PHA liquidity on Astar Network to support one of the most promising assets in the Polkadot ecosystem and onboard more potential DeFi users.
• Strengthen the connections between the Phala and Astar ecosystems and demonstrate a powerful use case of Phala by providing DeFi utilities to the Phala community.

How will Phala benefit from this proposal?

• Build up on-chain liquidity to provide a place for the Phala community members to easily swap $PHA assets with other assets without having to bridge to Ethereum.
• Expand the utilities of $PHA assets by integration with AstridDAO and Starlay/SiO2 Finance. Users will be able to use $PHA as collateral and borrow stabelcoins or other assets without selling $PHA.

Liquidity Provision Details

Time Period: 1 year

• Support $PHA on ArthSwap for asset swaps
  • ArthSwap is the leading DEX on Astar. https://defillama.com/protocol/arthswap
  • Building up the liquidity on ArthSwap can provide a place for community members to swap $PHA and for lending protocols/CDPs to liquidate $PHA collaterals.
  • We suggest opening a $PHA-$ASTR pair as the first step since $ASTR is the routing asset in ArthSwap and has the most liquidity.
  • Liquidity provision scheme - 60K USD worth of PHA and 60K USD worth of ASTR
    • Astar team:
      • Buy 30K USD worth PHA with ASTR via OTC based on the market price
      • Add 30K USD worth PHA and 30K USD worth of ASTR in ArthSwap’s ASTR-PHA pair
      • One year later, Astar will have the right to sell 30K worth PHA to ASTR via OTC based on the original market price when started the liquidity provision.
    • Phala team:
      • Buy 30K USD worth ASTR with PHA via OTC based on the market price
      • Add 30K USD worth ASTR and 30K USD worth of PHA in ArthSwap’s ASTR-PHA pair
      • One year later, Phala will have the right to sell 30K worth ASTR to PHA via OTC based on the original market price when started the liquidity provision.
• Support $PHA on AstridDAO for stablecoin collateralization
  • AstridDAO is building the leading money market on Astar with high-capital efficiency stablecoin $BAI. https://defillama.com/protocol/astriddao
  • Users will be able to use $PHA as collateral and borrow stabelcoins or other assets without selling $PHA.
  • Liquidity provision scheme - 20K USD worth of PHA
    • Phala provides 20K USD worth of $PHA to deposit into AstridDAO as collateral and uses the minted BAI to provide liquidity for $PHA stability pool.
• Support $PHA on Starlay/SiO2 Finance
  • Users will be able to lend and borrow $PHA
  • Liquidity provision scheme - 20K USD worth of PHA
    • Phala provides 20K USD worth of $PHA to deposit into Starlay/SiO2 Finance

Additional

• Phala and Astar teams have the right to terminate the liquidity provision before the scheduled date.