Tokenomics
V1 to V2. Returning real yield back to $ALLUO lockers.
Last updated
V1 to V2. Returning real yield back to $ALLUO lockers.
Last updated
Currently, there are two automated execution of tokenomics behind $ALLUO.
Minting $ALLUO tokens to reward lockers
Returning retained profits of the protocol back to lockers through CVX-ETH.
During every governance cycle, a proposal to mint $ALLUO for lockers is created.
The result is parsed by an offchain open-source execution script through Github actions, then when the vote is executed, the VoteExecutorMaster mints the appropriate amount to the Locker contract and queues the reward to be vested for $ALLUO lockers.
An example of such a proposal to do so proposed biweekly is:
With the introduction of tokenomics V2, all the profits of the protocol earned through liquidity direction are returned back to Alluo lockers.
For example, if the promised yield on the USD farm is 7% but the obtained yield is higher at 9%, the spread of 2% is returned to Alluo lockers.
The steps of how this happens are as below, all in one transaction when doing the automated execution of our votes.
1. Calculate expected yield vs obtained yield.
If the spread is positive, send this to the CvxDistributor.
This is sent in the form of 'primary tokens' for each asset class. USDC, WETH, WBTC, and EURT.
Distribute CVX-ETH rewards to lockers.
Convert all primary tokens into CVX-ETH and then distribute the reward to all lockers.