3️⃣Rewards structure. Referral program

The Cadabra Finance has a rewards program that has several features:

  • The program is built on the ownership of the ABRA platform token, which has the potential for growth due to the unique model of deflationary tokenomics, and also allows you to receive additional rewards.

  • Rewards are paid immediately and can be used in any way, for example, to further increase your rewards.

  • The referral program is included in the rewards program and is an integral part of it, but not the main one.

Before describing the rewards program in detail, it is necessary to talk about the general mechanics and rewards that may be a good reason to work with the Cadabra platform.

Rewards and benefits for ABRA owners

ABRA is the utility token of the Cadabra Finance platform. The token is deeply integrated into the engine of the platform and allows to maximize the yield generation, as well as share these rewards with ABRA token holders. For more information, see the article about the Cadabra platform tokenomics model.

Locking ABRA tokens

Locking is the operation of staking (freezing) ABRA tokens in a smart contract for a specific period time, as a result the user receives instant one-time rewards in the form of ABRA tokens, advanced features and privileges when using the Cadabra Finance platform, and also the user receives veABRA voting tokens on this lock period.

Please note, until the end of the locking period, ABRA tokens cannot be removed from the smart contract.

In other words, when locking an ABRA token, the user receives special veABRA tokens for the duration of the freeze, as well as bonuses and opportunities, which will be shown below. At the same time, ABRA tokens continue to belong to the user, and after the locking is completed, they can be disposed of without restrictions.

Locking ABRA tokens contributes to long-term plans on the development of the Cadabra Finance platform and involves the community in platform development through DAO.

Locking of ABRA tokens is beneficial to all users of the platform, as it:

  • provides positive pressure on the ABRA token;

  • makes it possible to receive various bonuses and additional yields, including referral rewards.

Instant rewards for personal locking

When locking ABRA tokens, the user, in addition to veABRA tokens, also receives an instant personal rebate/cashback in the form of additional ABRA tokens. The size of this bonus depends on the duration of the locking and can reach 100% of the initial ABRA tokens locked.

The profitability for locking can be determined by two metrics, which qualify the same and just characterize it from different sides. The examples below use increased rewards that will be actual only in the first two weeks after the start of the project.

  • Absolute instant reward — the size of a one-time rebate (cashback) in relation to the initial number of locked ABRA tokens. For example, if the user locked 1000 ABRA for 2 years, and received an instant reward (cashback) in the amount of 333 ABRA tokens, which is 33.3% of 1000 locked ABRA tokens. 33.3% or 333 ABRA is the absolute instant reward.

  • uAPY (unlock Annual Percentage Yield) — annual yield at the time the tokens will be unlocked.

For example, if the user locks 1000 ABRA for 2 years and receives 333 ABRA as rebate, then he actually freezes only 667 ABRA tokens, and he can immediately dispose of the cashback. And at the end of the locking period, the user will receive back the initial 1000 ABRA. Since annual profitability is initial investment plus received rewards, then unlock APY is measured taking into account the locking duration. So the profitability can be considered as 333 ABRA tokens. The initial investment is 667 ABRA, actually locked 1000 ABRA minus the instantly received 333 ABRA as cashback. Then the total return for 2 years will be 50% (333 ABRA / 667 ABRA * 100%), or 25% per annum (50% / 2 years).

The received cashback can be used at your discretion, for example, you can almost double it. This can be done by locking ABRA for 4 years, receiving bonuses, locking the received bonuses for 4 years, receiving bonuses again, and then repeating this several times. It is a Looping lock — a way to get maximum cashback and the maximum number of veABRA tokens per 1 ABRA token. veABRA holders receive income and opportunities, which are described below.

The metrics literally describe the amount of rebate but from different sides, and, for example, an increase in uAPY% means an increase in the absolute instant reward, and in turn, cashback during looping lock.

It is important to note that increased cashback is applied to participants of the referral program, where uAPY is increased by 2%; you can read about the conditions in the referral program description below.

A table with increased reward amounts, which will be relevant only in the first 2 weeks after the start of the project, and in case of participation in the referral program.

You can lock tokens for any period from 30 days to 4 years. Your cashback will be proportionally recalculated between the two nearest locking periods. For example, locking for 2 months will give you the average between 1 month uAPY (17.4%) and 3 month uAPY (21.6%), which is (17.4% + 21.6%) / 2 = 19.5% uAPY.

Full information about reward amounts and validity periods is available in a separate section at the end of the article.

Income and benefits for veABRA holders

The number of veABRA tokens you receive for ABRA locking depends only on two factors: the amount of ABRA tokens you are locking and the end date of the locking.

The main and very important rule is that if two users stake the same amount of ABRA at different dates/times, and their lock periods ending on the same date/time, they receive the same amount of veABRA.

veABRA holders receive the right to vote and the opportunity to influence on the development of the project through putting forward proposals and voting on them — participation in DAO.

Also veABRA holders receive additional rewards, the amount depends on their shares in the total number of veABRA:

  • Part of the yield from strategies collected as Performance fee.

  • Platform Owned Liquidity yields.

Since profitability depends on the user’s share of total veABRA, the following rules can be applied to increase rewards:

- Earlier locking would make current shares and rewards greater.

- Locking for a longer period gives more veABRA tokens, and this increases the share.

- Use the looping rebate and receive the maximum amount of veABRA, thereby increasing your share and rewards.

Rewards and benefits in the referral program

To earn rewards in the referral program, you need to perform several steps:

  1. Create a team or referral structure — a big team brings greater rewards.

  2. Lock your ABRA tokens to receive a referral rank — the higher the rank, the greater the rewards.

  3. Receive rewards from each lock of ABRA tokens of your team — locking in the early stages is more profitable due to boosted factors.

Referral structure

The first step is to create a referral structure:

  • Become a referrer. Connect your wallet (Metamask, TrustWallet, etc.) on the website https://cadabra.finance, sign the proposed transaction and receive a unique referral link. More details here.

  • Create a team of referrals. Invite your friends to join the Cadabra Finance project using your referral link.

  • Expand the team. Help your direct referrals (who followed your referral link) create their own teams, and increase your rewards, because rewards also come from second-level referrals (referrals of your referrals).

The referral structure might look like this:

Referral program terms

The second necessary condition is the locking of ABRA tokens, while the participants of referral program receive rewards and additional benefits:

  • It is more profitable to be someone’s referral — if you are someone’s referral (it doesn’t matter whose), then locking ABRA tokens gives you an additional 2% to uAPY of a personal one-time bonus (rebate).

  • The referrer receives rewards based on amount of referrals’ rebate (cashback) when they lock their ABRA tokens: a) The size of the reward is determined by the referrer’s referral rank. b) The referral rank depends on the own amount of ABRA locked. c) Rewards come from two levels of referrals: up to 30% for the first level, and up to 10% for the second level.

An important point is that all referral rewards are paid immediately.

Referral ranks and reward amounts

The rank depends on the referrer’s amount of ABRA locked. In turn, the size of the reward received from referrals of the first and second levels depends on the referrer’s rank:

The user’s rank is confirmed or recalculated on a regular basis. It is important to clarify, that after the end of the locking period, tokens are not taken into account for calculating the rank, and the rank will be lowered. You must lock your ABRA tokens again to return or increase your rank.

Example of referral rewards

Example for referrers

If you have the rank of Archmage (the highest possible rank), and one of your first level referrals (a user directly invited by you) locks 1000 ABRA tokens for 1 year and receives 200 ABRA as a personal one-time bonus (rebate/cashback), you, as the inviter of this referral, receive 60 ABRA as a reward of 30% of his bonus.

If your referral invites his friend, who becomes your second-level referral, and the second-level referral locks 1000 ABRA for 1 year, this user personally receives 200 ABRA cashback, and you will receive 10% or 20 ABRA in the form of referral rewards from a second level referral.

Example for referrals

If you went to the Cadabra website using any referral link (it doesn’t matter whose) and then connected your wallet and signed the transaction, then you are someone’s referral. And then with a personal locking of 1000 ABRA for 4 years, you will receive rebate (cashback) in the amount of 500 ABRA, of which 21 ABRA due to the fact that you are someone’s referral.

How to increase profitability

When locking and receiving cashback, it is possible to loop the locking operation, and thereby increase the profitability up to 2 times more, as well as receive the maximum amount of veABRA tokens. Example:

Step 1. When you lock 1000 ABRA for 4 years, you will receive rebate (cashback) in the amount of 500 ABRA (instant 50%)

Step 2. The 500 ABRA received in Step 1 can be locked again and received 250 ABRA as a rebate (instant 50%, but from the newly locked 500 ABRA tokens)

…. …. Repeat locking and receive rebate if desired

Step N. Received rebate on the previous step, you can lock it again and get half of this amount back.

Sum up, total rebate received (cashback) can reach 100% of the initial amount of locked ABRA tokens, and the number of veABRA tokens received can be twice as more, which means giving you 2 times more vote power and doubling your rewards as a veABRA token holder.

Amounts of one-time personal bonuses

Below are the rebate amounts depending on the locking period. The size of bonuses is displayed as a percentage, where the first number is an increased cashback for participation in the referral program, the second number in brackets () is for users who came without a referral link.

You can block tokens for any period from 30 days to 4 years. Your cashback is proportionally recalculated between the two nearest locking periods. For example, locking for 2 months gives you the average of uAPY for 1 month (17.4%) and for 3 months (21.6%), which is (17.4% + 21.6%) / 2 = 19.5% uAPY.

Source of rewards

Reward tokens come from a special pool — 15% of the total ABRA issued. The pool has no restrictions on how long it can be spent — bonuses are paid until the pool is exhausted. Current reward rules are structured that the number of locked ABRA tokens must exceed the number of issued tokens in the form of bonuses. This means that the issuance of tokens in the form of rewards is compensated by the locking. This also means that locked tokens go out of circulation for a while and reduce pressure on the ABRA and could lead to an organic positive impact on ABRA tokens.

Links and resources

Referral program page in Cadabra Finance website: https://cadabra.finance

More information about the referral program: https://cadabra.gitbook.io/home/general/referral-program

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