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DAO Citadel
The DAO Citadel strategy investment objective is to provide exposure to Bitcoin, Ethereum, and other ERC-20 altcoins while allowing additional return via yield farming by providing liquidity to DEXs and lending protocols.
Allocations
Asset Name
Allocation
Exposure
Liquidity Pair
Platform
Reward
ERC20 BTC
30%
15% WBTC
15% HBTC
WBTC-ETH
30%
15% WBTC
15% ETH
ERC20 BTC
30%
15% WBTC
15% HBTC
ERC20 BTC
30%
15% WBTC
15% HBTC
DPI-ETH
30%
15% DPI
15% ETH
DAI-ETH
10%
15% DAI
15% ETH
All reward earned will be automatically sold and reinvested back into the strategy to maximise the compounding effect.
Strategy
The strategy takes advantage of many liquidity pool rewards that are offered by various DEXs and lending protocols. Tokens are converted into the designated token pairs according to the designed allocations, and token pairs are then in turn deposited into liquidity pools that generate additional rewards.
This allows the overall strategy to not only benefit from the appreciation of the token price itself, but also enjoy the additional rewards offered by liquidity pools. All rewards generated by Liquidity pools are then automatically sold in regular intervals and reinvested back into the LP for compounding.
This allows the overall strategy to not only benefit from the appreciation of the token price itself, but also enjoy the additional rewards offered by liquidity pools. All rewards generated by Liquidity pools are then automatically sold in regular intervals and reinvested back into the LP for compounding.
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Fees and Benchmark
There is a 0.5% - 1% fee charged per deposit (1% for deposits below $50,000 USD, 0.75% for deposits between $50,000.01 USD and $100,000 USD, and 0.5% for deposits above $100,000 USD). A 10% fee on the harvested reward (when collecting rewards for each liquidity pair) is also charged for the gas fees associated with yield harvesting and LP reinvesting. Finally there is a 20% profit sharing fee charged that goes towards the protocol (for operating costs and sustainability) and community pools (for token holders).
Risks
As the assets are allocated in liquidity-providing pairs, impermanent loss is a risk for this strategy when the price of one asset significantly outpaces the other in the pair.
Download the fact sheet for DAO Citadel Strategy here
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