The Curve Wars, to which an avalanche of pixels has already been dedicated, hold an incredibly rare opportunity, right now, for DeFi users that have conviction to bet.

This opportunity is created by three conditions that exist now and should make every regular crypto user’s eyes bulge:

1. A major event, the fundamental fight for liquidity (initially among stablecoins) is occuring
2. The battle is being fought in the open, public forums and DEXes, rather than in closed-door meetings and with OTC deals
3. There is a clear mechanism (CVX, voting bribing) by which everyday users can participate and benefit.

A big opportunity that doesn’t require insider access and where there’s nothing stopping regular people from getting involved? These are the opportunities that can make fortunes. It’s the dream of DeFi, and it’s now.

So you’ve found your rocket ship, sitting on the launch pad and fuelling up, with the door open to you. What next? It’s time to bet with conviction and make use of your resources as efficiently as possible. On this front there is big news. We (AladdinDAO, the makers of Concentrator) have created a powerful new weapon for the Curve/Convex ecosystem that will significantly boost the earning capability of regular CVX holders.

It’s called CLever, and it’s a way for CVX holders to earn more bribes and rewards, and compound those into more CVX. With CLever, when users deposit their CVX two things happen immediately. First, their CVX is vote-locked on Convex and used to vote for gauge weights and proposals on their behalf. Second, the user can immediately claim their future yields (up to 50% of the locked amount) in a synthetic CVX token called clevCVX. clevCVX can be swapped into regular CVX in two ways (Curve pool, clevCVX Furnace) and the resulting CVX can even be re-deposited as further collateral, increasing the users bribes and rewards.

And what about the bribes? The locked CVX, as mentioned, is used to vote on behalf of the user, with votes cast to maximize bribe value for them. All bribes and rewards are then harvested and swapped into CVX. Users who claimed their future yields already will see that their outstanding debt to the system is reduced by the amount of the harvest. They now have the option to claim more future yield, up to the maximum. Users that did not have outstanding debt at the time of the harvest receive their yields as claimable clevCVX. In both cases, the harvested regular CVX is placed into the Furnace.

CLever uses each user’s locked CVX to vote for Curve gauges in order to gain the maximum bribe income. Users gain the full benefit of their locked CVX voting power, and are able to get a big part of their future yields immediately.

The Furnace allows any user to request to burn clevCVX and get CVX at 1:1. When new CVX enters the Furnace it is distributed proportionally to all users with an active request. If there are no active requests, the CVX is held in the Furnace and available immediately for the next request. The Furnace helps keep the value of clevCVX close to CVX by creating an arbitrage opportunity any time the value of 1 clevCVX is lower than that of 1 CVX, while also creating an alternative to the Curve pool for swapping.

The Benefits of CLever Borrowing: Liquidation, Risk, and Cost

CLever’s future yield claiming mechanism is essentially borrowing against the user’s locked CVX, while using the yields to automatically pay back the loan. The details are important here, as CLever uses a significantly different (and in our opinion, better!) mechanism than most borrowing in crypto. The mechanism works by minting a synthetic version of CVX (called clevCVX) against the real thing, and then providing ways for users to swap their clevCVX for CVX, thus increasing the amount of CVX the user can earn with. Each clevCVX is fully backed by at least one real CVX token in the system.

The first benefit of this system is in liquidation risk… as in, there isn’t any. Liquidation in a money market or lending protocol occurs when the value of the borrowed assets exceeds a given fraction (LTV) of the value of the collateral, but in the case of CLever that doesn’t happen because the value of the borrowed (clevCVX) and collateral (CVX) tokens do not vary independently. It is possible for clevCVX to come off its peg and be worth slightly less at times, but not more as there would be an immediate arbitrage opportunity. So users never have to worry about the health of their loan, it’s always fine… no liquidation possible.

The next big benefit is in the risk exposure. For typical on-chain lending, users deposit an asset and borrow an unlike asset. For example, someone may deposit ETH as collateral and use that to mint/borrow a stablecoin. There are several risks here. In order to monitor the value of the collateral vs the value of the borrowed amount, protocols must rely on oracles. Oracles create extra failure modes and extra attack surfaces. In fact, many DeFi exploits are executed by disrupting or manipulating an oracle’s price feed in order to trick a lending protocol into thinking the collateral is worth more or less than the reality.

Another aspect of risk to typical borrowers comes from the fact that usually multiple different assets are accepted as collateral to borrow the same token. If any one collateral asset collapses in value or is exploited, it could risk affecting the borrowed asset for everyone. In the case of a borrowed stablecoin, the borrower takes on the risk of every single collateral accepted by the protocol. Yikes! Better double check that you’re comfortable with the risk of every different accepted collateral token, and not just the one you are supplying.

CLever’s mechanism requires no oracles at all, and the borrowed token is paired with the collateral token in a single pool so there is no risk of contagion.

The final big benefit to CLever’s leverage mechanism is the certainty in funding cost. There is zero interest charged on borrowed clevCVX. Instead, CLever charges 20% of the yield harvested (these fees are split between liquidity providers in the clevCVX/CVX pool and the (eventual) revenue sharing system). The CLever fee structure allows users to know up front how much their borrowing will cost. Again, this is very different from typical overcollateralized lending where users generally pay a variable rate on their borrowed tokens. For those systems, the borrowing rate can change suddenly as liquidity enters or exits the system, or as the liquidity utilization rate spikes. It’s impossible to predict borrowing costs precisely in such a system, and in the worst case a spike in borrowing cost could force a loan into an unexpected liquidation. Again, with CLever, there is no such risk.

More Awesome CLever Details

The Aladdin team has thoughtfully crafted CLever to be an unconditional benefit to the CVX community and the Convex protocol. The Aladdin team philosophy, as we have said over and over, is long-only: we identify the best protocols and build synergistic, not parasitic, tools for the community. CLever is perhaps the best example of that yet. Consider the following:

CLever provides a side benefit: yields on liquid CVX, without impermanent loss

Since the CLever mechanism relies on liquidity in the clevCVX/CVX Curve pool, it will incentivize that liquidity by sharing fee revenue denominated in clevCVX/CVX pool tokens. This is significant because it represents real CVX yield paid on liquid CVX. Additionally, depositors in the clevCVX/CVX pool do not experience impermanent loss as they would in a pool 2. The net result is that CLever provides a way for liquid CVX to earn real yields without locking. (Spoiler… Concentrator might just be planning to take advantage of this soon!)

Claiming future yields now gives maximum choice for users

CLever’s gives users the ability to claim more future yields up to their limit as soon as yields are harvested, or wait until later, or just wait while their yield is earned. Different users can use this flexibility to put CLever to work in different ways, depending on their needs users can:

• Immediately claim the maximum future yield and re-deposit to create/maintain maximum leverage
• wait and allow yields to accrue more then claim the maximum and re-deposit after multiple yield harvests to save on gas, or
• treat withdrawn clevCVX as securitization of future yields; swap or sell now to enjoy the next year’s yields today

Once a user’s claimed future yields have been fully earned, or if they choose not to borrow, they will continue to earn yields on their locked CVX in the form of withdrawable clevCVX. Users’ assets are never idle, they are always earning. This helps take the pressure off smaller users by giving them flexibility to execute transactions at a time and frequency that works for them, while still allowing larger users the ability to maximize their earning by more frequent operations.

The system of claiming future yields is essentially borrowing, so may also bring tax flexibility, depending on your tax jurisdiction. Since yields are harvested automatically and pay off your debt without requiring you to claim, users can keep borrowing more to add leverage while deferring the taxable event.

Move boldly

CLever is an opportunity for everyday CVX holders to gain the maximum benefit of the war being fought by the big guys, while simultaneously supporting these foundational protocols and betting on the future of DeFi. It is a set-and-forget protocol that allows CVX holders to rest easy while still earning the most yield. If you believe, as Aladdin’s Boule council does, that Curve and Convex are solid, long-term investments representing the future of DeFi, then you will find CLever represents an indispensable tool to take maximum advantage of the Curve wars. Check it out https://clever.aladdin.club, follow us on Twitter or head over to the Aladdin Discord to ask questions and learn more!

Nothing in this article is financial advice.

Details of CLever Beta Period

For the beta:

1. CLever will charge only 3% on all yields harvested (to cover gas), rather than 20%
2. CLever project will not be seeding initial liquidity in the official Curve pool, so be aware that the only official way to swap clevCVX to CVX will be the Furnace which is refilled only when bribes/rewards are harvested. Expect delays.
3. All wallets who use CLever during the beta period will be added to a whitelist for an upcoming token sale, where a small tranche of tokens will be sold for CVX to seed Curve liquidity. Whitelisted addresses will be offered the best price.

More details will be released in future.

DAO treasury management is painful. Managing members’ money well is both a serious challenge and a tremendous responsibility. This is doubly true for DAOs with an important purpose, where the stakes are high and treasury mismanagement is an existential threat.

The challenge is multi-dimensional. DAOs rely on their treasuries to achieve their goals independent of market conditions, so the treasury must be resilient. And yet, if the DAO’s treasury is to grow in good market conditions, managers must take risks. On top of all this, the logistics of coordinating multiple signers, perhaps across multiple wallets, makes active or timed strategies excruciating.

Concentrator is an entirely new type of DeFi compounding system built upon the Curve/Convex ecosystem that is ideally suited to support intelligent treasury management for DAOs. Concentrator enhances yields on core assets that DAOs should be holding, and it automates management transactions that would be overly burdensome to execute via multisig. Concentrator helps depositors maximize earning in tokens that have high long term upside and yield potential, and which also provide excellent optionality and utility for actions that a DAO may find themselves needing to perform.

How does it work?

Concentrator is an autocompounder that automatically harvests rewards from Convex vaults, swaps them into cvxCRV, and stakes those on Convex (auto-compounding). Since compounding cvxCRV on Convex currently returns around 50% APY, the overall result is base Convex yields increase by that much, and they do so by holding the cvxCRV token and retaining price exposure to the Convex and Curve ecosystem.

DAO treasuries should be resilient

First and most importantly, we assume that DAO treasuries should be as resilient as possible, so they are actually available to support the function and purpose of the DAO in all market conditions; surviving downturns but also capturing upside during good times. The best and simplest way to create this type of hardiness is to hold some mixture of core assets like ETH and stablecoins. Such assets form a foundation upon which a DAO can rely. Concentrator, being built on Convex, has several vault options in core assets, allowing for a sane allocation of principal while at the same time earning good rates denominated in quality tokens.

DAO treasuries should be mostly passive

Generally to increase yields a farmer employs compounding or other active management, involving regular claiming or swapping transactions. In the case of compounding, more frequent transactions translate into higher yields. For individuals this is a nuisance, but for DAOs constant management activities can be a serious barrier. Where a DAO treasury is managed by a multisig (which should always be true), each transaction requires signatures from several people, often spread geographically and across time zones.

Complicating matters further, these multisig holders may not be work-a-day DAO people, but could be community leaders, or third-party ‘auditor’ types who may simply not have time to devote to such day-to-day management transactions. In practice constant management transactions using a DAO multisig is likely just not sustainable, and so passive solutions are needed. Holding spot or passively providing liquidity are good options, but the automated yield enhancement of Concentrator is ideal.

DAO treasuries should farm tokens with both upside and utility

The final key to smart DAO asset management is in the selection of higher-risk tokens for farming. While it’s possible to swap rewards for more core assets (as a typical autocompounder would), DAOs and other large treasuries can instead choose to seek more upside in their yields by farming more volatile tokens. In this case, making a wise selection of which tokens to farm is crucial.

AladdinDAO, the team behind Concentrator, is built around an elected council of top DeFi experts called the Boule council. The enthusiasm of the Boule for the excellent Curve/Convex ecosystem is what prompted the creation of Concentrator in the first place. Compounding to cvxCRV, as Concentrator does, represents an unparalleled mix of high yield, growth potential and optionality for DAOs. The high yields are of course attractive on their own, but if Curve continues to grow and control AMM market share, earned cvxCRV tokens will be much more valuable in future. For DAOs wishing only to maximize their return without otherwise participating in the Curve wars, these tokens are an excellent choice for accumulation.

On the other hand, for DAOs that wish to participate in the Curve wars, the optionality provided by cvxCRV could be just as important. Due to the symbiotic relationship between Curve and Convex their token prices are highly correlated, so holding cvxCRV is not substantially different from holding CRV or CVX from a price exposure perspective. This rough price parity allows a DAO to keep funds in the Concentrator vault as cvxCRV as long as possible, earning high yields as long as possible, and then to make withdrawal decisions based only on when\if the withdrawn tokens are needed rather than when the price is favourable.

One risk worth mentioning is that cvxCRV could depeg from CRV, in which case depositors would suffer some loss swapping from cvxCRV to CRV. Interestingly, Concentrator itself helps to mitigate this risk. Each time a harvest is run, Concentrator is buying and staking significant cvxCRV, reinforcing the peg continuously.

Depending on a DAO’s particular needs and circumstances, when the time comes they may choose to withdraw to CRV (for vote-locking) or CVX, each of which provides a path to voting on Curve gauge weights and sharing Curve revenue. For DAOs that rely on liquidity in Curve, being able to vote for their own gauges directly is a powerful tool. Truly savvy DAOs that own a portion of their own token liquidity on Curve can even profit from this as they will receive some part of those CRV gauge rewards.

A nice side benefit of CRV and CVX is that after withdrawal, even if not being used to directly benefit the DAO they still offer the ability to earn yield in the form of bribes for Curve gauge weight voting. Bribe harvesting is very management intensive and so it is a less desirable long-term strategy for a DAO, but the utility and the yield potential these tokens continue to possess even after withdrawal from the compounding vault is remarkable.

End Your Suffering

With the endorsement of Aladdin’s Boule Council, amazing optionality, high yields, and future growth potential, cvxCRV tokens are an obvious choice for any DAO to farm, and there is no more efficient and effective way to do that than with Concentrator. Concentrator is a powerful new tool in the toolbox of DAOs with treasuries to manage, enabling maximum earning from sane principal allocations. The complexity of managing positions is almost entirely eliminated, and gas savings provide a nice bonus. For a DAO to survive and thrive it must be able to utilize its treasury wisely, and that has never been easier than now with Concentrator.

Article by crouguer, mistakes are my own. Big thanks to Sharlyn Wu, btt, Martin Krung, Cody White, and a friendly helper from the Curve/Convex community (you know who you are!) for feedback and input to shape this article.

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If farm-and-dump autocompounders are “not ideal” for users, they are downright bad for the protocols they exploit, and their communities. A farm-and-dump user is quite parasitic to the underlying protocol since they depress the token price, and do not participate in governance (which is ostensibly the purpose of the rewards). If a large enough volume of TVL is dumping all of their rewards then the token price will suffer, and in the worst case, the parasites can kill the host. A protocol may still need to issue these rewards to incentivize capital to support its core functions, but for the protocol it is always better if farmers hold than sell.

The pragmatic farmer will ask, why should I hold a volatile governance token, for a protocol in which I have no conviction? Of course, you shouldn’t. But you might also ask why you farm such a protocol in the first place. This type of transaction is a short term play with diminishing returns. The future of DeFi is not mercenary capital exploiting farm after farm, leaving destruction in its wake, but rather it is savvy farmers using their capital to support high quality, foundational protocols, while earning sustainable rewards that can increase in value, retroactively making their farming returns better and better over time.

Farmers looking to deploy this strategy will choose only the best quality protocols to farm, and leverage their core assets to earn associated high-quality DeFi tokens. Rewards can sometimes be compounded in a single-staking vault, depending on the asset in question, yielding a return that compounds even faster than the underlying reward rate on the base. More importantly, farmers using such a strategy will keep price exposure to the farmed token, which if well chosen can yield returns that dwarf those of the farm-and-dump compounder!

The missing piece of the farm and hold strategy is the mechanization of the auto-compounder to provide convenience and gas savings. To address this need, AladdinDAO has released a new product called Concentrator: the first farm-and-hold auto-compounder in DeFi. Based on the exceptional Convex and Curve ecosystem, Concentrator maximizes Convex vault returns by swapping rewards from Convex vaults into cvxCRV and staking it in the Convex cvxCRV vault, allowing farmers to keep CRV price exposure while boosting yields by around 50%. When it’s time to withdraw, farmers can also zap to CVX, CRV, or even ETH. Farmers enjoy a big boost to their returns, keep exposure to CRV/CVX and simultaneously help support the Curve and Convex protocols.

Concentrator adds a piece to the investment landscape which was missing before; the ability to leverage the benefits of an auto-compounder while longing, rather than shorting, an excellent reward token. Depending on a farmer’s tax jurisdiction it may also provide an advantage by allowing the farmer to choose when to claim rewards while still benefiting from compounding yields. It is a new tool in the Curve and Convex farmer’s toolkit and an experiment in better inventive alignment.

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Introducing Concentrator by AladdinDAO! Concentrator extends the incredible Curve/Convex ecosystem by helping Convex farmers earn up to 50% more with less hassle and less gas! Yields from multiple Convex pools are concentrated into cvxCRV where they earn maximum rewards while still maintaining exposure to the Curve/Convex ecosystem.

Tell me more…

Concentrator is an entirely new type of auto-compounding vault system, based on a philosophy of farm-and-hold. Rather than selling rewards constantly and buying more of the deposited token, Concentrator helps farmers concentrate yields from multiple Convex vaults into cvxCRV, then leverages auto-compounding to grow those returns even more. When it’s time to withdraw, users can choose from cvxCRV, CRV, CVX or ETH.

Why farm & hold? The typical auto-compounder principle of farm-and-dump, or immediately selling earned reward tokens, is not wise in all cases. Imagine earning Bitcoin as a reward in 2010, and selling it all immediately to buy USD! For the best protocols of today, which will grow to become foundational building blocks of DeFi tomorrow, dumping their tokens now could end up looking just as foolish. Smart farmers use diverse core assets to farm the highest quality DeFi tokens, holding them with conviction, and Concentrator helps them do that with much better returns and much less hassle.

How does it work?

Concentrator accepts Curve LP tokens and deposits them into one or more of our listed Convex vaults, regularly harvesting all associated rewards. Rewards from all deposited vaults are swapped to cvxCRV and then moved into our concentrator vault, where they are staked on Convex and have their rewards regularly auto compounded into more cvxCRV.

With Concentrator, farmers maximize their returns while minimizing their gas and time spent managing positions. Additionally, for farmers in some tax jurisdictions it is very useful to be able to choose when rewards are claimed. Concentrator is permissionless, decentralized, and fully audited, like all great DeFi.

Why this? Why now? Whyyyyyyy?

Since their election last year, AladdinDAO’s boule council of DeFi big brains has been meeting weekly to discuss, debate and determine the best DeFi strategies, opportunities, and protocols. Their research and discussions leak alpha to our community in the same way fire fighting planes leak water on burning forests… but those calls are just the beginning for Aladdin. (Anon, did you know that Aladdin’s Boule research meetings are all freely available on YouTube?)

In addition to our innovative portfolio management system, Aladdin’s team seeks to leverage the insights of the Boule council in other ways, and contribute to the advancement of the DeFi ecosystem by helping community members identify and earn the best DeFi tokens. In this regard, the Curve/Convex ecosystem was a no-brainer to build on. It is one of the most well regarded by the Boule council, coming up again and again across votes, strategy proposals, and general discussions. It’s easy to see why. Curve and Convex are arguably two of the best examples of “Aladdin-approved” protocols: foundational, performing a valuable service, and with grassroots bottom-up communities. The fact that Curve and Convex survive and thrive without bag-holding VCs or other early investors shilling them on Twitter speaks to this as well; they are simply so good they can’t be ignored.

The Aladdin team is excited to leverage its dev superpowers, relentless focus on security, and core farm-and-hold principles to bring a powerful new service to farmers in the Curve/Convex community who wish to earn the most CVX and/or CRV possible. What’s more, Concentrator’s unique approach actually supports the underlying protocols as much as the farmers by encouraging holding and staking, thereby improving the incentive alignment between them and benefiting everyone.

Wait, what about Aladdin?

Aladdin continues to reach for its enormous goals: to cut through the DeFi information overload and asymmetry, the garbage of CryptoTwitter, and to connect real users to the best DeFi protocols, for their mutual benefit. We continue working to leverage the insights of our elected, decentralized group of DeFi geniuses by widely sharing reliable information and providing valuable tools and services to our community.

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AladdinDAO’s Vision

When AladdinDAO was first conceived of, and then launched, it always had a mission of becoming a decentralised asset management protocol, with a portfolio of assets curated by a group of the most world class crypto and DeFi experts, that we call the Boule Council.

The Boule Council will be empowered through unique incentive structures to implement any crypto investment strategy from yield farming to token pre-sales dynamically, keeping up with the ever changing market conditions.

The $ALD token is intended to be the crypto native asset representing AladdinDAO’s portfolio of assets. Ownership of $ALD gives anyone in the community exposure to these premium crypto assets, making AladdinDAO the community-owned Berkshire Hathaway!

With our new tokenomic upgrade, $ALD token emission will change from a fixed block allocation to on-demand supply, dependent on bond sales.

Tokenomic Upgrade Details

For those that would like a refresher on our new tokenomic upgrades, you can visit this medium article which explains all the details! https://bit.ly/3FyKHXv

Launching January 11th 2021 2PM UTC, there are now various strategies implemented with the new tokenomic upgrade!

1. Primary Strategy: Bond to get $ALD at discounts.
2. Secondary Strategy: Stake to earn additional $ALD.

Liquidity Strategy: Provide permanent liquidity through Protocol Owned Liquidity (POL) to facilitate exit.

Primary Strategy, Bonding

The $ALD is the crypto native asset representing AladdinDAO’s portfolio of assets.

With AladdinDAO you can bond in multiple ways!

The easiest way to get started is by bonding principle assets such as wETH, wBTC, Dai, USDC and LP tokens from ALD/ETH and ALD/USDC uniswap pools! https://app.aladdin.club/#/bond

AladdinDAO’s Boule members vote on strategies of new protocols to be implemented by the treasury, in order to maximise profitability in accordance with ever changing market conditions.

In addition to simple bonding, AladdinDAO offers users a unique way to earn ALD tokens — Aladdin Vaults! With Aladdin Vaults, users can supercharge their farming returns by staking certain LP tokens to have their farm rewards automatically bonded for ALD and staked every day! Vaults for various Convex LP tokens will be available at launch. Watch Vaults in the future for more ways to supercharge your rewards from Aladdin selected partner protocols. (HINT: Ribbon, Lemma Finance, Notional Finance and more have been voted in by the Boule Council!) https://app.aladdin.club/#/vaults

All users who bond will enjoy only a 5 day vesting period on their acquired $xALD!

Secondary Strategy, Staking

Upon ‘Easy Mode’ launch, users will have multiple ways to gain access to $xALD in order to receive and auto-compound rebase rewards from staking!

1. Buy $ALD from the secondary market, stake the $ALD for $xALD. https://app.aladdin.club/#/stake
2. Bond principle assets or LP tokens for various pools and strategies from various protocols to acquire $xALD. https://app.aladdin.club/#/vaults
3. Acquire $xALD by voting as an initiate of the Mystery Schools, through Boule Plus rewards, Aladdin ASK and other bounty programs for the community! https://app.aladdin.club/#/mystery

All staking has a 9 day vesting period!

Treasury management

As $ALD is backed by the value of the treasury, it is critical that Aladdin adopts the right strategies and has the capabilities to manage and grow the treasury. This is the mission that Aladdin has had in mind since we started the journey.

AladdinDAO is built for the next billion coming to crypto. Our goal is to lower barriers of entry and help them capitalize on the increasingly complex crypto world. In addition, we are providing an open access to education in every step of asset selection / portfolio management, and snowballing the most superior assets with the most brilliant minds in crypto and DeFi, namely the Aladdin Boule Council.

When AladdinDAO was first conceived of, and then launched, it always had a mission of becoming a decentralised asset management protocol, with a portfolio of assets curated by a group of 30 of the most world class crypto and DeFi experts, that we call the Boule Council.

The Boule Council will be empowered through unique incentive structures to implement any crypto investment strategy from yield farming to token pre-sales dynamically, keeping up with the ever changing market conditions.

The $ALD token is intended to be the crypto native asset representing AladdinDAO’s portfolio of assets. Ownership of $ALD gives anyone in the community exposure to these premium crypto assets, making AladdinDAO the community-owned Berkshire Hathaway!

With our new tokenomic upgrades that many of the community are aware of, $ALD token emission will change from a fixed block allocation to on-demand supply, dependent on bond sales.

Tokenomic Upgrade Details

For those that would like a refresher on our new tokenomic upgrades, you can visit this medium article which explains all the details! https://bit.ly/3FyKHXv

There are various strategies implemented with the new tokenomic upgrade!

1. Primary Strategy: Bond to get $ALD at discounts.
2. Secondary Strategy: Stake to earn additional $ALD.

Liquidity Strategy: Provide permanent liquidity through Protocol Owned Liquidity (POL) to facilitate exit.

Floor Price Strategy: Ensure that the market value of the ALD does not fall below the reserve. When the total market value of ALD is lower than the value of Treasury Asset, a public buyback of Treasury will be initiated until the market value of ALD is greater than the value of Treasury Asset.

Why Genesis Bonding?

Genesis bonding is a special 2 week event to reward Aladdin OGs and long-term supporters, ending once staking rebase commences in January. We will be offering additional discounts on $ALD purchases via genesis bonding.

During Genesis bonding, all bonded tokens will mature in 2 weeks rather than the original 5 days for ordinary bonding. The xALD, which is an auto staked version of ALD obtained from the genesis event, will automatically earn staking rewards. We are targeting 300%+ APY when rebase goes live in January.

There are two ways to participate in Genesis Bonding. There is up to a 5–6% additional discount to ordinary bonding discounts during Genesis Bonding.

1. Bond can be purchased directly with bluechip assets or stable coins, such as like ETH, WBTC, Dai, USDC;
2. Bond with the LP tokens of ALD/ETH and ALD/USDC pools from Uniswap.

Treasury Management

As $ALD is backed by the value of the treasury, it is critical that Aladdin adopts the right strategies and has the capabilities to manage and grow the treasury. This is the mission that Aladdin has had in mind since we started the journey.

AladdinDAO is built for the next billion coming to crypto. Our goal is to lower barriers of entry and help them capitalize on the increasingly complex crypto world. In addition, we are providing an open access to education in every step of asset selection / portfolio management, and snowballing the most superior assets with the most brilliant minds in crypto and DeFi, namely the Aladdin Boule Council.

Over the last week, AladdinDAO has run not 1, but 2(!) airdrops for our community in preparation for launch of our new tokenomics, described in one of our most recent medium articles, here!

We have so far run 2 airdrops, the Airdrop of the Initiate, and the Airdrop of Truth! These airdrops focussed on different user segments of the AladdinDAO community.

The Airdrop of the Initiate was targeted to Boule Plus Initiates, who participate in weekly voting rounds, on potential new protocols to be integrated into AladdinDAO. Over the last week, we AladdinDAO has summoned over another 100 Initiates to our voting rounds, a 50% increase!

The Airdrop of Truth was targeted to users of protocols that have already been voted in for integration into AladdinDAO. These protocols include:

· Element Finance

· Rari Capital

· Ribbon Finance

· Lido Finance

· Abracadabra Money

· Maple Finance

· Lemma Finance

· Risk Harbor

Our community leaders were successfully able to work with Ribbon Finance, Element Finance and Abracadabra Money predominantly, getting over 700 people into the Airdrop of Truth whitelist with over 550 people who have registered their eth address thus far!

Now with the Airdrop of Truth Almost complete, we now will announce our third and final airdrop!

The Airdrop of the Observooor!

The Airdrop of the Observooor is intended for everyone so far who have been observing AladdinDAO from afar, but haven’t yet made the pledge to go down the rabbit hole of the AladdinDAO mysteries…

In this airdrop, everyone can participate, as we believe AladdinDAO is the best bet for everyone to get exposure to the best blue chip DeFI Assets voted in by the biggest Big Brains of all of DeFi, from the Boule Council!

So, the following is the structure and criteria on how to participate in Airdrop of the Observooor!

1. You must invite 3 friends to the AladdinDAO discord through your OWN discord link. You can check if you have 3 invites by going to the
   #🤝-invite-leaderboard channel under the “Airdrop of the Observooor” channel category and type “-invite”. The 3 top Discord users with the most amount of invites through their link will be given additional tokens for the airdrop!
2. You are required to retweet THIS Tweet of the Airdrop of the Observooor on our twitter, to get other observooors to notice.
3. You’ll be then required to join the #🧞rub-the-genie-lamp voice channel. We will have Discord moderators assigning people on the voice channel the “Observooor” role on Discord, by observing this channel for peoples activity and creativity in pledging their allegiance to the Mysteries of AladdinDAO, by summoning the genie from the lamp!
   As an example, by coming into the voice channel and saying something like “We like the genies” will be enough to get selected for an Observooor role!
   Through December 15–18th, we will have moderators in the voice channel starting from 05:00, 10:00, 15:00, 22:00 UTC, so we highly recommend planning your activity around those times!

Once users pass this test they will then be given the “Observooor” Role by the moderators, where you will then get access to a secret private channel, where you’ll be given further instructions register your eth address!

A total of 500,000 xALD is up for grabs for this Airdrop!

And that’s it, you’re done! See you in our discord!

NOTE: This Airdrop is intended to allocate one airdrop per individual only. AladdinDAO community leaders reserve the right to ban and remove all users who are suspecting to be botting or otherwise trying to receive multiple allocations of the same airdrop.

As you know, contributors to the AladdinDAO community have been working extremely hard over the last few weeks on a complete overhaul of the AladdinDAO tokenomics, and new protocol dynamics that we believe will make AladdinDAO the leader in treasury management of the PCV protocols throughout DeFI. (For more information on these updates, you can refer to our last medium article https://bit.ly/3DwjaEq).

What this means, amongst many things, is that our users in the future will be able to bond both principle assets (ETH, BTC, stable-coins) and LP tokens from AladdinDAO’s integrated protocols to buy discounted $ALD, and then auto-stake this $ALD to receive compounding returns over time.

We are super excited by these updates and so we decided why not reward our community, who are clearly deserving, with their devotion so far, by running 3 airdrops (YES 3!) targeting different community segments of AladdinDAO! And so how will this work?

Each of these 3 community segments, who we think are deserving, will have the opportunity to participate in the running to receive their own airdrop of xALD based on different criteria unique to that community segment. At AladdinDAO, one of our key principles is financial inclusivity, allowing anyone in the community, whether a whale or small fish, to have access to the best yield bearing opportunities DeFi has to offer through AladdinDAO!

Staying aligned with this, each airdrop recipient will be receiving xALD, an auto-staked version of ALD, which provides all successful participants immediate access to staking pool rewards that will be released at our launch.

We won’t even require you to use any staking gas fees! Once the airdrop wraps up, all you’ll have to do is sign your claim to your xALD, which will be available at time of launch (middle to late December) here https://airdrop.aladdin.club/.

Over all 3 airdrops up-to 1.5 million xALD will be up for grabs!

And so, let’s announce our first airdrop;

Airdrop of the Initiate!

The initiates of our Mystery School (Boule Plus members are initiates!) have been the most dedicated members of the community. They have strived to educate themselves on each of the protocols pitched every week by the Boule Council, and pledged their worth by voting on their knowledge through weekly voting rounds on Aladdin’s Snapshot page, https://vote.aladdin.club/#/. We are currently in our 7th voting round!

In order to participate, there are four criteria that must be met and completed by the time of the new tokenomic launch (mid to late December. We will get exact details as we get closer to launch!).

1000 xALD for up to 500 Initiates is up for grabs!

These criteria are:

1) Becoming an Initiate by staking 5000ALD (you can do this by following the instructions in this link https://app.aladdin.club/#/boule-plus) ;

2) Participating in at least 1 voting round (the next voting round will start December 10th 8AM EST. YOU MUST be a Boule Plus Initiate(have staked 5000 ALD) before voting starts to be able to vote. The vote for this will appear at this link https://vote.aladdin.club/#/);

3) Receiving the “Boule Plus Initiate” Discord Role (once you join our Discord https://discord.gg/6Eg82v9sRB, go to the

“#✅-boule-plus-initiate-verification”

channel and write !join, where a collabland bot will personal message you with instructions to verify that you have staked 5000 ALD as required by step 1).;

Some of our most devoted members have already, naturally completed the first 3 criteria! If so, you’ll be able to skip to the 4th criterion!

4) Once the first criteria 3 criteria are met and the next voting round for Boule Plus has finished (December 13th 8AM EST), all successful Initiates will get access to the “#🪂-initiate-airdrop” secret channel where they will be required to type “!rub 0x#” where “0x#” represents the eth address associated with your staking address with the 5000ALD. If your eth address has been successfully retrieved, you’ll get a reply by the bot indicating so. Looking something like this;

If there has been a mistake, it’ll prompt you to try again. If you successfully put in an eth address, but made a mistake, you can do it again with another eth address. It’ll rewrite your entry associated with your discord name!

Once the launch occurs, we will close the channel where the moderators will be back testing for validity of the eth address, and if successful, will be added to the whitelist ready for the airdrop, claimable through the airdrop website. https://airdrop.aladdin.club/

(The moderators reserve the right at anytime to disqualify anyone who are suspected to be farming or botting the airdrop).

And that’s it for the first Airdrop!

Keep an eye out for more airdrops to come! 👀

Announcing Airdrops for the AladdinDAO community! was originally published in AladdinDAO on Medium, where people are continuing the conversation by highlighting and responding to this story.

If you’ve been following AladdinDAO’s story, you will know that we have assembled 30 of the biggest, brainiest DeFi experts in the world (we call them the Boule Council), and created an economic mechanism to incentivize them to share their DeFi insights with the community.

Each week the Council convenes for their research meeting where two protocols are presented to the group for discussion and debate. During the following week, the council votes on whether to officially endorse those protocols and integrate them into the Aladdin ecosystem. The price to watch these research meetings and scoop mad alpha? Free.

Watch our free alpha videos here https://www.youtube.com/channel/UCaQaNdQo_j4gbEyqPkKuj_w/videos

The value Aladdin creates is ridiculous, but who does it help? Aladdin was founded to harness elite big brains to help everyday people safely thrive in DeFi, but there are two key weaknesses with the existing system impeding that:

1. Value created by the Boule Council is not well captured by the ALD token, which is the fuel that powers the whole system.
2. Many opportunities proposed by the Boule Council are not accessible to much of the community due to gas costs and complexity.

The solution to both of these problems turns out to be deceptively simple: AladdinDAO will build a treasury of tokens and LP positions in the protocols that the Boule Council has elected, then tie the value of the ALD token to that backing fund.

When the switch is thrown, ALD will instantly become a simple, automatic, low-gas way to track Aladdin’s full portfolio of superior DeFi projects, which will be properly diversified with blue chips and stables. ALD holders save gas, avoid complexity and get free diversification. This is huge.

Right now gas prices make diversified farming on Ethereum mainnet impossible for all but whales and pros, but Aladdin can change all that. Our new tokenomics will allow more people than ever to benefit from amazing Ethereum DeFi projects. More great projects with more ownership representing more people who are more engaged makes for more WAGMI!

The Basics

Standing on the shoulders of giants, the Aladdin team has implemented and optimized an economic mechanism for connecting the value of the ALD token to the treasury holdings of Aladdin projects. Simply buy and stake your ALD, then sit back and watch as your ALD bags track the performance of the evolving Aladdin treasury without costing you another gwei in gas.

It’s all the power of Aladdin, on Easy Mode!

To play along, follow our patented three step process:

1. Get some ALD! Buy at Uniswap, or better yet, bond assets directly.
2. Stake it! If you bonded with auto-stake, you genius, you’re already done.
3. Tell your friends that you prefer to let your team of experts worry about finding the best long-term DeFi plays, so you can focus on important Twitter shitposting

On the Bonding and Staking model

The system of bonding, staking and rebasing that is now familiar to the DeFi world has some important implications that are perhaps not well understood.

First: selling bonds is fundraising. It is a way of acquiring non-native assets in a project treasury, so that they can be used for some purpose. It doesn’t matter if that purpose is investing, yield farming, or paying Nic Cage to sing Ave Maria in a tutu, what the funds are for is a completely separate, but important, question.

Secondly, protocols that use this approach generally mint more value in their native token than they take in from bonds. Le gasp! But do not be alarmed. For an asset-backed token, minting more value in native tokens than you take in your treasury, assuming that the market price of the token remains stable, is simply a way of creating leverage. Extra minted tokens are distributed among the true believers who stake their tokens, limiting the dilution those holders experience when new tokens are minted.

If the ratio of token market cap to the treasury assets backing them stays approximately fixed, the market cap will increase or decrease at that ratio multiple of the treasury. In other words, token holders who stake experience the gains and losses of the treasury, but amplified. This is neither good nor bad, it’s just leverage… It increases both potential loss and potential gain. In the end, these protocols’ native tokens are a bet on their treasury, so the protocol had better have a compelling story about why their treasury growth prospects are worth the leverage risk.

AladdinDAO started with this problem in mind, and we have developed what we think is the most compelling decentralized solution in the industry. Our story is about algorithmically harnessing the power of the amazing Boule Council, about farming-and-holding the Best of DeFi, and about enjoying profit from, while simultaneously supporting, the best teams building the future of finance.

Implications

This new tokenomic structure has several very beneficial secondary effects that are worth mentioning:

1. The Boule Council has more freedom to propose great strategies. In the previous system, to be meaningfully integrated with Aladdin, farms not only had to be on Ethereum mainnet, they had to offer a protocol native token as a harvestable reward. This technical restriction severely limited which of the Boule Council’s proposed opportunities could be integrated. Under the new system, there is no such limitation. More complex strategies that require multiple transactions are also no problem.
2. Aladdin can be a diamond hand partner. Part of the Aladdin raison d’être is to support the best of teams and protocols in DeFi while they craft the future. However, with Aladdin’s old vault system there was no way to ensure that capital coordinated through its vaults would be truly “diamond handed”. With this change we have a much stronger narrative about how selected protocols benefit. Who knows? This could open up opportunities in the future for partnerships that could benefit the Aladdin community and selected projects!
3. Aladdin improves its education public service by 100X with its Open Source Portfolio. Under the new model Aladdin will be managing a diverse DeFi portfolio entirely in the open, where the community can watch and learn from every step of the process, from research and selection to allocation and rebalancing. There is a big difference between sharing some good tips and demonstrating the construction of a solid, diversified portfolio. The educational value of being a community member continues to grow, and we can all level up!
4. Aladdin can still rock the feel-good vibez, giving away that alpha. The new tokenomic approach supports the Aladdin protocol as much as it supports the ALD token holders and the selected protocols, and it does so without blocking or gating any of the hot alpha or amazing learning potential of watching the Boule Council do their work. Think of it like open-source software, anyone and everyone who wants can benefit from Aladdin’s research free of charge, and Aladdin is supported by providing a super-powerful, but ultimately optional, way to participate.

We’re shippiiiiiing!

The new system doesn’t just improve on what we started from, it creates a whole new set of opportunities for people to participate who couldn’t realistically do so before. Now that the undeniable value created by the Boule Council can be linked to the ALD token performance, Aladdin is positioned to take off, and offer the best risk-adjusted reward opportunity in DeFi.

Join us:
discord.gg/PVUSDPAsrU
https://twitter.com/aladdindao

After launching the Boule Council, we couldn’t be more proud to unveil Boule Plus, a permissionless community where any members stake $ALD and participate in the Liquidity Curation game, just like the Boule Council.

We are exploring a whole new frontier — DAOFi, where you can bring intelligence to the forefront and link it directly to your earnings.

Join Aladdin Boule Plus, enjoy our new DAOFi vote-to-earn farming (you can read more about Boule Plus here )

We launch Boule Plus with the intention to involve as many community members as possible in our DeFi experiment, and to invite more community members to contribute and share AladdinDAO’s success. What are you waiting for？

Why Join Boule Plus?

1. Vote on a liquidity mining project and earn rewards every two weeks. The same incentives structure for Boule applies to Boule Plus. Namely: support outperforming pool and reject underperforming pool.
2. Participate in AladdinDAO’s weekly research meeting
3. Broader community visibility and faster track to be elected to the Boule Council
4. Accumulate reputation by voting on proposals correctly
5. ALD holders maximize rewards by participating in vote-to-earn farming

How to join?

1. Stake 5000 $ALD to receive $ALDPLUS.
2. Anyone who holds ALDPLUS for more than three months is entitled to an NFT.
3. ALDPLUS will be burned when unstaked. Claiming $ALD back takes 14 days.

Most importantly, Boule Plus and Boule Council are incentivized in the same fashion with the following differences:

Extending AladdinDAO’s yield curation game to the broader community has always been on our roadmap. We are psyched to launch it and see more big brains boarding this journey with us!