The Possibility of stATOM on Astroport

Disclaimer, I am a Stride contributor.

This post is to explore the possibility of listing stATOM on Astroport. There is no guarantee Stride will be involved with any stATOM pool on Astroport. This is merely the beginning of an exploratory conversation with the Astroport community.

What is stATOM?

stATOM is a liquid staked derivative (LSD) of ATOM that has existed for one-and-a-half months. It is issued by the Stride blockchain.

stATOM works like LunaX, in that holders earn auto-compounding staking rewards through the appreciation of stATOM against ATOM.

stATOM can be considered the best collateral token native to the Cosmos, since it inherits the price stability of ATOM and it earns ATOM staking rewards.

Why bring stATOM to Terra?

Before the May crash, LUNA was widely used as collateral on Terra. Unfortunately, LUNA isn’t what it used to be. For Terra DeFi to recover, it may be desirable for a more reliable collateral token to be made available. To be clear, all leverage-based DeFi applications on Terra will likely approve an LSD of LUNA as collateral. But having stATOM also available as a collateral option would increase confidence.

Remember, before the crash Anchor had white-listed several bridged collateral tokens, including an LSD of ATOM. It was a good idea to increase collateral options before the crash, and it’s an even better idea now.

The only leverage-based Terra DeFi application currently known to be in development is Capapult. Capapult is an over-collateralized stablecoin issuer for the stablecoin $SOLID. SOLID will be backed by an LSD of LUNA, but it could also be backed by stATOM.

No other leverage-based DeFi applications are currently known to be in development for Terra, but it’s possible some are being developed in secret. Looking beyond leverage-based apps, stATOM might be a good candidate for mixing on Redacted Money.

stATOM on Astroport

stATOM and STRD could be added to the list of tokens available for IBC bridging on Once that happens, stATOM would be available on Terra for anyone to IBC over and use.

It would be a good idea to make an stATOM-USDC liquidity pool on Astroport. USDC would be a good base pair, because this pool would be used by liquidators, and liquidators like to get to USDC as quickly and efficiently as possible. At this time, USDC is the most liquid and popular stablecoin on Astroport, being paired with LUNA and ASTRO.

Stride may wish to catalyze adoption of stATOM on Terra by incentivizing the stATOM-USDC liquidity pool. Stride would incentivize the pool with STRD, the Stride governance token. To avoid liquidity fragmentation, there likely would not be a deep STRD liquidity pool on Astroport, so users wishing to sell their STRD would want to use IBC to bridge it to Osmosis.

What’s in it for Astroport?

In general, having stATOM on Terra would help the recovery of Terra DeFi. As the premier DEX on Terra, if Terra DeFi recovers then Astroport volume will increase. Remember, prior to the May crash, LUNA liquidations provided lots of trading volume to Astroport.

Furthermore, having stATOM on Astroport will help Astroport compete with Osmosis. In late November, LUNA will start vesting to hundreds of thousands of airdrop recipients. Since ATOM is such a popular token, users may wish to sell their vested LUNA to buy ATOM. If they can do that on Astroport then Astroport clearly benefits.

For all these reasons, if this plan were to come to fruition it would make sense for the Astroport community to provide ASTRO incentives as well.


This is not a proposal, but merely a conversation. If this conversation goes well, a formal proposal may be forthcoming.

Should there be an stATOM pool on Astroport? If Stride provided incentives, would the Astroport community be willing to incentivize it, too?

All comments, suggestions, and questions are welcome (:

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I am all for making Astroport open to LSD and DeFi tokens from the Cosmos ecosystem.
So, I am in favor of porting stATOM to Terra and Astroport! Especially if Stride is willing to incentivise the stATOM-USDC pool


I agree, more then an interesting idea if Stride considers incentivizing this pair

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I am in favour of bringing stATOM to Terra. Rather than looking at it from the perspective of allowing Terra users to access stATOM alone, we should look at it from the perspective on the possible utility of stATOM and which pair will be the most suitable those utilities. Some possibility could be:

  1. Collateral for money market/lendingprotocols
  2. Collateral for CDP stablecoin protocols
  3. Token for an index on Terra (ie. Nebula Clusters)

The focus to support the utility above:

  1. stATOM on Astroport should be as close to the actual price of stATOM. It should not deviate too much as it will impact the prices taken by Terra dApps and it might cause an unnecessary liquidation if it deviates too far from the actual price.
  2. The pool should be somewhat more resistant to oracle price attacks, where, it needs to have a deep liquidity, recommended longer TWAP for lending protocols and arb protocols like Whitewhale to support this.

The possible pair to support this could like what John suggested, a stATOM/USDC to enable quick liquidations for lending protocol, however, it should be initially incentivised with Stride until partnerships with lending/index protocols are established to ensure that there are sufficient demand on Terra before Astro incentives being added.


Thanks for the feedback!

As you point out, there are many possible use-cases for stATOM on Terra.

You make some good points about the oracle issue. Terra dapps would likely want to use the biggest stATOM pool in the Cosmos as their oracle. Right now, that’s the stATOM pool on Osmosis. Interchain queries could be used to continually query the Osmosis pool. On the other hand, apps could constantly query the stATOM redemption rate from the Stride blockchain. A hybrid approach using both these options may also be possible.

I support adding stATOM & endorse @MaxCallisto’s points above.

agree with this; great points

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