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
  • πŸ“ Background
  • ❓So what actually happens?
  • πŸ’ Why can’t I just do this myself?
  1. Understanding Alluo

πŸ’΅ How does Alluo get the yield?

This page gives you a bit more background to the protocol and where the yield comes from.

PreviousTech deep dive: Contract Address LibraryNext🐰 Going deeper into the Alluo protocol rabbit hole

Last updated 2 years ago

πŸ“ Background

If you’re here we assume you’ve read the , and a bit about and and are looking to dig deeper.

That said as a reminder, Alluo enables its users to earn a great yield for the assets (stablecoins and the major crypto coins) they purchase and hold through the Alluo mobile app or stake in the farms through the Alluo web app.

The protocol is a cross-chain yield optimisation and liquidity direction protocol and our mobile app is a non-custodial wallet deployed on Polygon.

Note that Alluo is not a bank and funds invested on Alluo are not protected by a government-backed scheme such as FDIC, FSCS or other such schemes.

❓So what actually happens?

Alluo’s deposits (from either our non-custodial or ) are are held in a variety of stablecoins (e.g. DAI, MIM, USDC, USDT, FRAX etc.).

Every two weeks the $Alluo token lockers (those who bought, held and locked up their $Alluo tokens) vote on where to deploy/invest Alluo’s deposited funds from a selection of Curve and Convex liquidity pools. Once deposited in the pools, the funds earn yield and rewards which Alluo claims and returns a share to Alluo depositors.

πŸ’‘ Liquidity pools can get quite complex. Put simply, they are pools of tokens that sit in smart contracts and can be exchanged or withdrawn at rates set by the parameters of the smart contract. Adding liquidity to a liquidity pool gives you the opportunity to earn trading fees and possibly rewards.

πŸ’ Why can’t I just do this myself?

An individual customer can of course buy tokens, deposit them into the Curve pools, earn rewards, claim rewards deposit into Convex, claim rewards and convert back to their token/stablecoin of choice. However, this multi-step process is at best time consuming and is certainly not straightforward for average users.

Moreover, it is often not cost effective for smaller deposits, especially if you want to spread your deposits over multiple pools. Alluo, takes away this cost and friction simplifying this experience significantly.

basics about Alluo
our mobile app
web app
Mobile app
anonymous crypto-friendly Dapp
Welcome to Curve FinanceCurve Finance
More information on Curve
Welcome to Convex FinanceConvexFinance
More information on Convex
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