July 13, 2022: Farmers' Market 🧑🌾🧺
AladdinDAO 0xConcentrator Initial Farm Offering (IFO) Begins Tomorrow
Ladies and Gentlemen, start your tractors! The 0xConcentrator Initial Farm Offering begins in less than 24 hours.
What is this? Why should you care?
For starters, the rest of cryptocurrency already bought the farm, so be honest, what else you got going in your life? Let’s review this from the start.
What is Curve? Once upon a time, Mr. and Mrs. Egorov… uh.. actually, let’s fast forward a bit past the absolute beginning.
Aladdin DAO realized that yield farming is great, but the entire process could be streamlined. For instance, if you are yield farming $CVXETH on Convex, you’d be doing pretty good.
58% is not bad — but what if you took the rewards and reinvested them into cvxCRV that you stake for more rewards? You’d do a bit better, right? Aladdin automates this reinvestment process, meaning no gas and no extra work. Even with fees, the 58% gets boosted up to 71%. Pretty genius!
So they establish product market fit to the tune of >$50MM in deposits, during a bear market no less, and now they’re sitting pretty. Time to retire and grow fat off the land?
What next? How about an airdrop! Except, why just do a silly airdrop everybody will dump for short-term marketing buzz, when you can turn the entire concept upside down and reinvent things.
Introducing, the Initial Farm Offering. Concentrator is releasing their new $CTR token and giving it all away to farmers for as long as supplies lasts. Everybody stakes on equal terms (well… an $aCRV technically grows relative to a $cvxCRV, but more on that later).
What are all these specific tokens at play? We are presumably familiar with $cvxCRV — Convex’s wrapped version of $CRV earned from yield farming on Convex.
When you use Concentrator instead of Convex, Concentrator has their own $aCRV token to signify precisely how much $cvxCRV you’re earning through auto-compounding.
Based on this index, this means an $aCRV held since inception has earned nearly 14% interest. Pretty cool token, right?! It’s so cool that AladdinDAO decided they want more of these tokens in their treasury.
To get their mitts on more $aCRV, the team decided to create a new protocol token $CTR, which can be locked for governance rights and up to half of all of Concentrator’s future revenue.
The $CTR token is designed with a fixed supply of 5MM. Half of this supply is being released via the farm offering, and once the farm offering is complete that’s the end of the story.
Concentrator wants to raise exactly 2.5MM $aCRV. For the duration of the farm offering, they’re setting the price at 1 $aCRV == 1 $CTR. For anybody who stakes into an IFO vault, the $aCRV one would ordinarily earn from farming is being replaced with 1 $CTR. Once the event is over, this will resume earning $aCRV, so farmers can keep that “set and forget” energy strong.
Of course, not financial advice, but the Concentrator team has hinted they believe this farming represents a lowball opportunity. This makes it perhaps the first farmer’s market history without a stunningly high markup.
What can we expect when the vaults open tomorrow? Nobody can say for certain, but at very minimum we’d expect a lot less of the insta-dumping energy we see from traditional airdrops. The 30% stake of $CTR being given to AladdinDAO is being locked, and one presumes the farmers who gradually accrue $CTR have less incentive or opportunity to dump.
Some users are speculating that competition for the new token might drive up Concentrator’s TVL, sitting at $53.5MM at the moment
Based on the joyous response, we’d guess at least some users are planning to try it out.
Several users are drawing their own parallels with the giga-brained tokenomics and other analogues.
Let’s TL/DR this beast…
Check out the original announcement thread
Or the always great summaries by @SalomonCrypto
Happy farming frens!
The actual CTR only equals to 0.5 aCRV
Or you could not pay an 8% treasury fee, a 0.3% withdrawal fee, and instead just compound your cvxCRV returns yourself.