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Governance (DAO)

Lock ABRA to veABRA and influence key decisions
The Cadabra DAO (Decentralized Autonomous Organization) will give control and ownership of the platform to the community.

Why is the DAO important?

Transitioning to a DAO makes Cadabra decentralized and aligned with users' interests. Key benefits include:
  • You become the owner - The community controls the DAO so you have a say in the future of Cadabra
  • Increased transparency - Decisions happen publicly on-chain instead of behind-the-scenes
  • More innovation - The collective wisdom of the community leads to faster innovation
  • Censorship resistance - No single entity can make unilateral decisions

How can I participate in the DAO?

To participate, you need to lock your ABRA to obtain veABRA, the governance token of the DAO. The longer you lock, the more voting power you receive. Then you can create and vote on proposals.

What can I vote on?

Using veABRA, you can vote on:
  • Adding/removing integrated protocols
  • Changing platform fees
  • Upgrades to strategies
  • Liquidity allocations (Liquidity Allocation Votes - LAVs)
The list will be extended and not limited.

What are liquididty allocations (LAVs)?

veABRA holders can vote on periodic liquidity allocations (Liquidity Allocation Votes - LAVs). In other words, veABRA controls platform managed liquidity and its allocation.
There are 3 types of LAVs:
1. Strategy LAVs
Allocate liquidity between a strategy's yield sources. Impacts:
  • Direct rebalancing of assets between sources
  • Configuring deposit and withdrawal sources to maximize yield at reasonable risk
2. Platform LAVs
Adjust liquidity between strategy pools to balance risk and returns. Riskier strategies yield more but shouldn't dominate liquidity.
3. Cross-chain LAVs
Move liquidity across blockchains for better yields on the same assets.

When will the DAO launch?

At the start DAO is launched on multichain https://snapshot.org/ platform and has limited functionality.
The extended DAO is planned to launch within approximately 6 months after the initial Cadabra platform release. This gives time to fully decentralize operations and ensure a smooth transition.