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Legato (Aptos)

Legato (Aptos)

DeFi liquidity bootstrap protocol allows acquiring early tokens with staking rewards on Aptos chain
Legato (Aptos)
Legato (Aptos)

Problem


Legato team tackles two main problems for two different groups of users as follows:


(1) Stakers - Many PoS blockchains including Aptos allow staking for a passive income of 4-6% in staking rewards per year. However, the crypto market is volatile and we regularly experience principal token price drops of 20-30% within a day, which may not cover losses. How can we turn staking rewards into something else?


(2) Projects - The most critical period for crypto projects is when they launch tokens. Listing on fixed-weight AMM pools can cause exponential price jumps in a short period, resulting in significant selling pressure. If the price drops too low, projects often cannot recover and quit from the market.


Solution


Legato is a DeFi liquidity bootstrap protocol using native staking available on Sui and Aptos. It allows stakers to sacrifice staking rewards for the next 6 or 12 months in exchange for early project tokens launched on Legato LBP.


Early projects will benefit from a stable price curve and mitigated selling pressure. Stakers receive new tokens while all principal assets remains the same. Existing projects can also list tokens with significantly less initial capital, around 3x to 5x less compared to other DEX platforms.


Wave#7 Conclusion


This week, we updated the AMM to support LBP, which allows the pool to start shifting its weights gradually and adjusts the token price curve. This prevents the token price from spiking quickly, providing more controlled price progression during token launches.


One major improvement is the UI, which we have merged with our main website. We have constructed a trading screen that allows interaction with the Legato AMM DEX. Mock tokens are available for minting and testing the AMM on the Testnet.


Roadmap


We have outlined the roadmap for #4-#10 below


Wave#4 - Developed the AMM DEX with custom weights. (DONE)


Wave#5 - Improved AMM Math and Legato Vault's asset management. (DONE)


Wave#6 - UI for interacting with timelock vaults. (DONE)


Wave#7 - Complete LBP, UI for interacting with AMM DEX including LBP. (DONE)


Wave#8 - Integrate Legato AMM DEX with Legato Vault.


Wave#9 - A module for LP staking, incentive distribution and its UI


Wave#10 - Documentation and articles on how to use