Alluo Explained
  • Welcome
    • 🧭 The Basics
  • Getting Started
    • πŸ’» The DeFi Web App
      • ❓ Connecting to the app
      • 🚜 Depositing into the farms
      • πŸ™Œ Other basics
      • 🏦 Importing your Mobile app wallet to Metamask
      • 🧬 Add the polygon network manually in Metamask.
      • ⛓️ Bridging Stablecoins from another chain
    • πŸ“±The Mobile app
      • πŸ—οΈ Setting up your account
      • 🏦 Depositing money into the app
      • πŸ™Œ Other basics
      • πŸ” Exporting your private key
    • πŸ“–Tech deep dive: Contract Address Library
  • Understanding Alluo
    • πŸ’΅ How does Alluo get the yield?
      • 🐰 Going deeper into the Alluo protocol rabbit hole
    • 🧐 FAQ
  • Tokens & Tokenomics
    • πŸͺ™ The tokens
    • πŸ‘¨β€πŸ”¬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
    • πŸ“ˆ Tokenomics
    • πŸ‘¨β€πŸ”¬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
    • πŸ—³οΈ Trustless governance and execution
    • πŸ‘¨β€πŸ”¬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
      • πŸ“ˆFrax Convex Finance
        • Adding new pools into the strategy
        • Investing into a pool
  • More Advanced Features
    • πŸ” Repeat payments, streaming IbAlluo
  • Product Updates
    • πŸ‘Œ Product Roadmap: Building the right products
    • πŸ’» Web App releases
    • πŸ“± 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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On this page
  • Liquidity Handler as a buffer
  • What are adapters?
  • Below are two links walking through a deposit and withdraw example showing how funds move through the IbAlluo ecosystem
  1. Tokens & Tokenomics
  2. Tech deep dive: Interest Bearing {asset} token

Liquidity Handler and adapters

Where do deposits into IbAlluo tokens go and how does the protocol ensure redemptions can be met?

PreviousUsing the IbAlluo contract directly to create streamsNextDeposit process with the Liquidity Handler

Last updated 2 years ago

Liquidity Handler as a buffer

All the funds that are deposited in each IbAlluo are sent directly to the single Liquidity Handler contract. The funds then move into their respective active adapter where they top up a buffer to enable withdrawals, or they are sent to the Treasury where it is prepared to be invested.

All funds that are withdrawn are taken directly from the buffer in the Liquidity handler for each token. If this buffer is depleted, the withdrawal request is added to a queue which follows a FIFO system. The buffer is maintained by the DAO and is regularly maintained to always ensure redemptions.

Currently, these deposits are invested manually by sending the funds to our automated vote executor. This is planned to be automated in the future Also, the buffer is planned to be automated.

What are adapters?

The adapters are separate modular contracts that can be selected by the Liquidity Buffer contract to hold a buffer of tokens to meet withdrawals as well as act out custom logic if needed.

Currently we have two types of adapters:

  1. Adapters that do nothing but hold a buffer

  2. Adapters that interact with curve to hold LP tokens in the stablecoins (3pool for IbAlluoUSD)

The latter is used to protect against arbitrageurs so that they do not enter and exit the IbAlluo system simply to arbitrage small differences in market value for different supported tokens in each IbAlluo contract.

Below are two links walking through a deposit and withdraw example showing how funds move through the IbAlluo ecosystem

πŸ‘¨β€πŸ”¬
Deposit process with the Liquidity Handler
Withdraw process with the Liquidity Handler