Aladdin DAO is a decentralized autonomous organization focused on developing DeFi protocols. The DAO is focusing on refining strategies for optimizing and automating yield farming within the Curve ecosystem. Additionally, it is exploring the development of the f(x) Protocol to support the creation of scalable decentralized stablecoins. ^[1]

Overview

Aladdin presents three products: Concentrator, CLever, and f(x) Protocol, introducing new tools for DeFi users. ^[1]

Concentrator

Concentrator is a tool to optimize yields by consolidating rewards within Convex vaults, directing them towards auto-compounding top-tier tokens such as aCRV (cvxCRV) and aFXS (cvxFXS). ^[2]

Users deposit Curve LP tokens or utilize the zap feature to allocate funds to their chosen strategy. These funds are automatically staked in Convex vaults, with rewards collected periodically. These rewards are then exchanged for aCRV or aFXS, serving as auto-compounding wrappers for cvxCRV and cvxFXS/FXS respectively. Users have the option to unwrap their aCRV or aFXS at any point, or they can convert them to blue chip assets using the zap feature. ^[2]

aCRV/aFXS

aCRV and aFXS function as wrappers, each representing a portion of an auto-compounding Concentrator vault. Each wrapper is associated with a distinct farming strategy. Yields generated from each strategy are compounded to increase the holdings of the underlying token. ^[2]

The aggregate quantity of the underlying token held in the auto-compounding Concentrator vault corresponds to the total balance of Auto-compounding tokens multiplied by the prevailing index: ^[2]

• cvxCRV_Balance = aCRV_Balance * Current_aCRV_Index
• cvxFXS_Balance = aFXS_Balance * Current_aFXS_Index

CLever

CLever is a platform where users can deposit high-quality tokens into high-yielding collateral strategies. By doing so, they can claim their future yields immediately. These future yields can be utilized in various ways, including farming, re-depositing to create leverage, or using them as needed elsewhere. CLever supports tokens such as CVX and FRAX, with forthcoming support for CRV. ^[3]

Users lock their collateral tokens in a yield strategy and can immediately claim some of their future yields as clevTokens for gas fees. These clevTokens can be farmed or swapped for equivalent tokens using the Curve liquidity pool or the Furnace. To create leverage, users may redeposit their tokens to earn more. Yields from the collateral strategy are swapped back to the collateral token to pay down the user’s debt to the system. ^[3]

clevTokens

clevTokens represent future yields from CLever strategies and are backed by equivalent real tokens. They can be farmed in CLever liquidity pools or exchanged for more of the original token. ^[3]

f(x) Protocol

The f(x) Protocol introduces two new ETH derivative assets: fractional ETH (fETH) with low volatility and leveraged ETH (xETH) representing a long ETH perpetual token. fETH captures cryptocurrency market growth with limited volatility, resembling a stablecoin. xETH functions as a perpetual future contract with adjustable leverage and zero funding costs. The system is backed by a mix of ETH and liquid staked ETH derivative collateral tokens, minimizing centralized risks. fETH liquidity scales rapidly compared to CDP-issued stablecoins due to high demand for leveraged long ETH positions.

FxUSD

fxUSD is a stable-leverage pair technology with a robust peg, real yield, and instant minting and redemption. Individual reserve stablecoins are not independently liquid, existing only within the Stability Pool or fxUSD reserve. fxUSD consolidates stablecoins from constituent pairs at 1:1 ratio, enabling minting by supplying an accepted LSD or withdrawing from a rebalance pool. ^[4]

ALD Token

During the Token Generation Event (TGE), 200,000,000 ALD tokens were created through mechanisms such as Liquidity Bootstrapping Pool (LBP), airdrops, and ALD TVL Option tokens. An additional backup of ALD tokens was reserved for the DAO, to be utilized in accordance with TVL-based community governance. The remaining 80% of the token supply will be gradually being issued over the next four years through liquidity mining, distributed on a block-by-block basis. ^[10]

The AladdinDAO manages the AladdinDAO treasury, utilizing revenue generated to foster the development of the Aladdin ecosystem for the benefit of all ALD token holders. The treasury provides resources, including code audits, community support, and marketing expenditures, to assist the community in achieving AladdinDAO's goal of uniting bright minds and directing users towards high-quality initiatives that benefit the community. ^[10]

During the Initial Token Mining phase, 100,000,000 ALD tokens (ten percent of the total supply) were issued to the market over the first four weeks (200,000 blocks) to accelerate the early growth of AladdinDAO. The remaining 70% of the total supply, amounting to 699,978,240 ALD, is set to be mined over approximately four years (10,400,000 blocks) and distributed among liquidity providers (29%), DAO mining (31%), participants (30%), and DAO Reserve (10%). ^[10]

Roles

• Boule Members: Boule Members are experts in DeFi who assess promising DeFi projects. They facilitate AladdinDAO community members' participation in liquidity mining programs, potentially leading to returns. ^[5]
• Boule Plus Members: Boule Plus members are an extension of Boule, with similar voting privileges and reward opportunities. ^[5]
• DAO Members: Anyone can become an AladdinDAO member. ^[5]

Vaults

The daily farming yields in vaults are automatically bonded, enabling farmers to earn additional yields in ALD. They can choose to auto-compound this income in the Staking Pool, significantly improving their APY and capital efficiency. The vaults comprise quality strategies selected by the Boule Council. ^[6]

Bonds

Through bonds within AladdinDAO, users can obtain ALD with on-demand allocation. ALD becomes an "on-demand supply" token, offering an alternative way to acquire it at a discounted price compared to the secondary market. There are three bonding methods: ^[7]

1. Direct purchase of bonds with assets like ETH, WBTC, Dai, USDC, etc.
2. Bonding with LP tokens of ALD/ETH and ALD/USDC pools from Uniswap.
3. Farming yields from vaults are automatically bonded.

The bond price is algorithmically determined and not reliant on the secondary market. ^[7]

Staking

Staking allows ALD holders to maintain their share of the total supply when no new bonds are introduced. When ALD holders stake their tokens, they receive XALD at a 1:1 ratio and earn rebase rewards once per epoch. ^[8]

Protocol Owned Liquidity (POL)

Protocol Owned Liquidity (POL) is central to Aladdin's liquidity strategy, ensuring permanent liquidity for users to facilitate exits. Aladdin will gradually transition from existing ALD/ETH liquidity incentives to POL. POL rewards liquidity providers through LP bonding, allowing LPs holding ALD/ETH or ALD/USDC to bond for discounted ALD. Additionally, a portion of bonding profits from each epoch will go to POL, initially set at a default rate of 50%. There will be no fixed cap on ALD issuance; issuance speed depends on demand for bonding and rewardRate determined by community governance. ^[9]