Alluo Boost increases returns on customer deposits by automatically claiming and reinvesting rewards as auto-compounding CVX/ETH LP tokens. All without the need for the customer to do anything.
🧐 So what? Why is this interesting to me?
Friction-free finance, Alluo does the heavy lifting so you don’t have to
Get exposure to CVX/ETH through depositing stablecoins (or other eligible tokens)
Boost returns by over 25% with zero lock-in
🤓 How does it work?
Customers deposit stablecoins or approved tokens into the Alluo web-app
We convert to the relevant LP token and stake in the respective Alluo “main” Convex vault
Every week we automatically harvest the rewards from the “main vaults” and convert them to CVX/ETH LP tokens which we stake again on Convex in the “boosted vault”
At the same weekly schedule, we harvest rewards from the “boosted vault”, convert them to CVX/ETH LP tokens, and re-stake in the boosted vault, so as to auto-compound rewards
Customers can withdraw their principal (main vault deposit), or rewards at any time
💡 Things to remember
Our standard pools operate on a fortnightly fixed rate. Rates are set every two weeks and remain fixed until the next liquidity direction vote. Alluo makes money from the difference between the earned rewards rate and the rate given to the customer
In Boost pools, 90% of rewards go to the customer and Alluo takes a 10% fee from the rewards
Boost rates are directly linked to the convex rate and will change regularly as the Convex pool rates change
Boost pools provide an opportunity to boost rewards by looping deposit pool rewards through a higher-yielding boost pool (with zero customer effort!)
🧠 How do I learn more?
If you want to dig deeper check out our full medium article here. Or jump here to the following technical section.