🪙 The tokens
This page summarises the key tokens in the Alluo ecosystem and what they mean
This is our main token. $ALLUO holders are able to stake their $ALLUO tokens and receive vlALLUO in return. This follows the tried and tested Token /voteLockedToken approach like convex (convex) where tokens are locked in exchange for vlTokens (vl stands for votelocked) which allow stakers to receive votes and earn rewards. (see tokenomics page for more details)
By locking their tokens for a period of at least 1 week, vlAlluo holders also earn the spread between that given to depositors in the mobile and webb apps and the realised APY of those assets.
When depositing into the Alluo protocol, the user receives an IBAlluoXXX token denoting the receipt of this deposit (if the deposit is in the USD farm, then the user will receive IBAlluoUSD, if the deposit is in the EUR farm, IBAlluoEUR). For context, IB stands for “interest-bearing” while the three letters at the end reference the currency being farmed
From there, the value of this IBAlluoXXX token grows at the rate equivalent to the APY that is voted on by the $ALLUO stakes as part of regular governance rounds (at the point of writing this is 7% per year for the USD farm).
We have also created the ability to stream the interest bearing Alluo tokens to each other. The great thing about Interest-Bearing tokens is that the yield on these tokens continuously compounds up until the moment the user wants to convert them, for instance in USDC or USDT.
In effect, this means that as funds are being streamed from wallet A to wallet B, they continue to compound at a given APY and remain invested during the entire streaming process! You can find out more about streaming IBAlluo here