Alluo Explained
  • Welcome
    • 🧭 The Basics
  • Getting Started
    • 💻 The DeFi Web App
      • ❓ Connecting to the app
      • 🚜 Depositing into the farms
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      • 🏦 Importing your Mobile app wallet to Metamask
      • 🧬 Add the polygon network manually in Metamask.
      • ⛓️ Bridging Stablecoins from another chain
    • 📱The Mobile app
      • 🏗️ Setting up your account
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      • 🔐 Exporting your private key
    • 📖Tech deep dive: Contract Address Library
  • Understanding Alluo
    • 💵 How does Alluo get the yield?
      • 🐰 Going deeper into the Alluo protocol rabbit hole
    • 🧐 FAQ
  • Tokens & Tokenomics
    • 🪙 The tokens
    • 👨‍🔬Tech deep dive: Interest Bearing {asset} token
      • Depositing
      • Withdrawals
      • IbAlluo on different chains
      • StIbAlluo and Superfluid
        • A closer look at the integration between IbAlluo and StIbAlluo
      • Using the IbAlluo contract directly to create streams
      • Liquidity Handler and adapters
        • Deposit process with the Liquidity Handler
        • Withdraw process with the Liquidity Handler
    • 📈 Tokenomics
    • 👨‍🔬Tech deep dive: Boosting yield by compounding rewards
      • Deposit into the Vault
      • Withdraw from the Vault
      • Redeem rewards
      • Automatic boosting with Alluo
      • FraxConvex Vaults
      • Managing withdrawal requests in IERC4626
  • Decentralisation and Trust
    • 🗳️ Trustless governance and execution
    • 👨‍🔬Tech deep dive: Vote Executor Architecture
      • Off chain votes to on chain data
      • Onchain data verifcation
      • Automated execution of votes
        • Tokenomics
        • Liquidity Direction
        • Setting APYs on farms
      • Cross chain execution of votes
      • Manually submitting vote results onchain
    • ↔️Alluo Exchange
      • Interacting with the Exchange
    • vlAlluo Architecture
    • Contracts upgrades
    • Investment strategies
      • 📈Frax Convex Finance
        • Adding new pools into the strategy
        • Investing into a pool
  • More Advanced Features
    • 🔁 Repeat payments, streaming IbAlluo
  • Product Updates
    • 👌 Product Roadmap: Building the right products
    • 💻 Web App releases
    • 📱 Mobile App releases
    • 🏎️ Alluo Boost
  • tutorial projects
    • Example: USDC to streaming 1 IbAlluo per second
    • Example: Using IbAlluoUSD and Ricochet to do capital efficient DCA into ETH
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  1. Tokens & Tokenomics

Tech deep dive: Boosting yield by compounding rewards

Deposit Curve LP tokens into an Alluo Vault and get your rewards compounded

Previous📈 TokenomicsNextDeposit into the Vault

Last updated 2 years ago

Alluo ERC4626 Vaults:

are standardised tokenised vaults. Alluo's ERC4626 Vaults accepts an LP Token as an underlying (i.e FRAX-USDC LP for the AlluoFraxUSDCVault) and stakes them into Convex for rewards.

When these rewards accumulate - usually in the form of CVX, CRV and other incentive reward tokens - they are swapped by Alluo for CVX-ETH LP and staked in the vault's respective Alluo Pool.

Then rewards simultaneously accumulate in the Vault and Pool from staked Vault underlying LP tokens and CVX-ETH LP tokens, from which this process of swapping to and staking CVX-ETH LP tokens is looped.

When holders of the ERC4626 Vault shares wish to withdraw, they receive the Vault underlying LP token back and they are eligible to claim any accumulated rewards from this loop process in the form of CVX-ETH LP.

Dive deeper into the Deposit, Withdraw, Reward and Looping functionality of the Vault:

👨‍🔬
ERC4626 Vaults
Deposit into the Vault
Withdraw from the Vault
Redeem rewards
Automatic boosting with Alluo