iTokens

What are iTokens?

Investors can join any Astra DAO index or investment pool by purchasing iTokens pertaining to that index or pool. Buying into an index can only be done with ETH, DAI, USDT, and USDC. The exact amount of iTokens received is calculated based on the ratio of their allocation value to the entire index value.

iTokens are equivalent to a percentage share of index USDC value. Every profit or loss the index incurs is transferred to iTokens holders based on their iToken participation ratio in all outstanding iTokens.

iToken minting and burning

iTokens are non-transferable ERC-20 tokens, compatible with traditional Ethereum-based wallets. Once received by a user, iTokens cannot be transferred to other wallets, and can only be redeemed by being sent back to the index smart contract. All funds deposited into the index smart contract are only accessible by the user who deposited those funds.

When any user deposits into the index, new tokens will be minted. In case of a withdrawal, iTokens will be burned. Token minting will be decided based on that user's share of the pool.

iToken staking

Astra DAO iToken staking is designed to incentivize participation units (“iTokens”) holders. To get iTokens staking rewards, holders need to keep their iTokens in an iVault.

Rewards are shared by iToken holders based on their percentage share of iToken holdings, as well as any applicable multipliers. Any iToken staking rewards need to be claimed by the user.

iToken staking rewards are covered by the liquidity mining plan. This is when a predetermined amount of Astra DAO tokens are moved from the main treasury to the liquidity mining rewards pool.