AstridDAO

AstridDAO is a decentralized borrowing protocol that allows you to draw interest-free loans against multiple collateral assets (e.g. ASTR, ETH, BTC, and etc.). Loans are paid out in BAI (a USD pegged stablecoin) and need to maintain a minimum collateral ratio depending on the collateral assets you deposit. In addition to the collateral, the loans are secured by a Stability Pool containing BAI where borrowers collectively act as guarantors to ensure a fast and safe liquidation process.

Borrowing
AstridDAO offers interest-free loans and is more capital efficient than other borrowing systems (i.e. less collateral is needed for the same loan). Instead of selling collateral assets (e.g. ASTR, ETH, and etc.) to have liquid funds, you can use the protocol to lock up your collateral asset, borrow against the collateral to withdraw BAI, and then repay your loan at a future date.
Using ETH as an example for the collateral asset: Borrowers speculating on future Ether price increases can use the protocol to leverage their Ether positions up to multiple times, increasing their exposure to price changes. This is possible because BAI can be borrowed against Ether, sold on the open market to purchase more Ether — rinse and repeat.

Instant Liquidation and Stability Pool
To ensure that the entire stablecoin supply remains fully backed by collateral, Vaults that fall under the minimum collateral ratio (e.g. 130% for ASTR) will be closed (aka. liquidated).
The debt of the Vault is canceled and absorbed by the Stability Pool and its collateral distributed among Stability Providers.
The owner of the Vault still keeps the full amount of BAI borrowed but loses ~(minimum collateral ratio - 100%) value overall hence it is critical to always keep the ratio above the minimum collateral ratio, ideally above 30% or 40% + minimum collateral ratio.

Instant Redemption
A redemption is the process of exchanging BAI for the collateral asset (e.g. ASTR) at face value, as if 1 BAI is exactly worth $1. That is, for x BAI you get x Dollars worth of asset in return.
Users can redeem their BAI for the collateral asset at any time without limitations. However, a redemption fee might be charged on the redeemed amount.
Taking ETH as a collateral example, if the current redemption fee is 1%, the price of ETH is $500 and you redeem 100 BAI, you would get 0.198 ETH (0.2 ETH minus a redemption fee of 0.002 ETH).
Note that the redeemed amount is taken into account for calculating the base rate and might have an impact on the redemption fee, especially if the amount is large.

ATID token
ATID is the protocol token issued by the AstridDAO protocol. By locking it and generate veATID tokens, ATID holders can capture the fee revenue that is generated by the system. This would further incentivize early adopters.
In the long term, ATID rewards will only accrue to Stability Providers  ( i.e. users who deposit BAI to the Stability Pool).