ast
How it works

Leveraged tokens

A leveraged token (LT) is an ERC-20 whose value tracks a perpetual position at a fixed target leverage — for example xBTC3L is a 3x long on BTC, xETH5S a 5x short on ETH. One LT equals a pro-rata share of the USDT that backs it: the vault's NAV divided by the number of LT in circulation is the exchange rate, always quoted in USDT per LT.

Where the money is

Each vault holds its USDT in two places. Part stays idle in the contract on BNB Chain, ready to pay redemptions instantly. The rest is deposited on the Aster account as margin, where the keeper holds the actual perpetual position. The vault's NAV is the sum of both: idle USDT plus the equity attributed to it on Aster.

Lifecycle

  • Mint: depositing USDT creates LT at the current exchange rate and increases the position that must be held.
  • Settle: at each settlement the vault marks its position to the latest price, applies funding and fees, and its exchange rate moves accordingly. Between settlements the price is read from the market feed, so the value is always current.
  • Rebalance: the keeper resets the position to target leverage whenever it drifts outside a tolerance band. This is what makes the leverage constant over time.
  • Redeem: burning LT returns USDT at the exchange rate, paid from the idle balance — instantly when there is enough idle, otherwise through a queue the keeper serves after withdrawing from Aster.

Leverage decay

Constant-leverage products compound daily returns. In a trending market this works in your favour; in a choppy market that ends flat, the repeated rebalancing costs value. A 5x token loses more to decay than a 2x one. This is a property of leveraged tokens everywhere, not something specific to ast — and it is the main reason to prefer lower leverage for a token meant to live a long time.

Catalogue

The catalogue covers 30 markets × three leverages (2x, 3x, 5x) × two directions. Every LT, with its live NAV, exchange rate and how fresh its last settlement is, is listed on the Leveraged tokens page. Only LTs that are actually used by a launched token carry a meaningful balance; the others sit at a symbolic seed until someone picks them.

Where the vaults' money is right now — positions on Aster, equity, idle USDT — is on the Vault page, live.
The LT is an interface compatible with the Bounce standard (mint, redeem, exchangeRate…), so the launchpad plugs into it without adapters — and so could other protocols.