ABRA emission + External Yield. Complementarity

We have combined the best elements of two well-established approaches into Cadabra 2.0: the ve(3;3) tokenomics model and a yield aggregator,. This article explains how these components affect the ABRA token, drive project development, and differentiate Cadabra from other protocols.

Summary

• To provide competitive yields and attract users, we rely on two yield sources: ABRA token emission and yield from external protocols. The ve(3;3) model balances these yield sources and establishes sustained demand for ABRA tokens. External yields significantly mitigate ABRA inflationary risks.

• From the start, our protocol generates added value (earn money in other words) necessary for sustainable growth. The ve(3;3) model introduces mechanisms for ABRA token utility, while external protocols generate yield. Many other successful projects demonstrate their sustainability through earning swap fees, partnerships & seamless integration - anything that enhances yield within the protocol helps establish leadership.

• External yields are one of our core features. Cadabra ensures a consistent yield stream from day one, avoiding reliance solely on token emissions. By integrating with the top of high yield generating protocols, we provide users with competitive and substantial yields (not related to ABRA emission) from the very beginning.

ve(3;3) Mechanics

The ve(3;3) mechanism ensures consistent demand for ABRA tokens and maintains balance between protocol liquidity (TVL) and rewards. Here's how it works:

1. Token Utility: ABRA is used for voting and earning yields, making it liquid and in demand from the outset.

2. Locking Mechanics: Tokens are needed to be locked for voting. This locking mechanism reduces peak pressure on the token and stabilizes development.

3. Demand-Supply Balance:

   • Liquidity providers earn passive rewards in ABRA tokens.

   • Active users lock ABRA tokens for voting and receive additional rewards.

These two groups stabilize token movement. For example, active voters may purchase ABRA during price dips to gain more voting power and claim higher rewards. During price increases, all users benefit: APR for strategies rises, liquidity grows, and voting rewards increase, further driving demand for ABRA tokens.

Yield Aggregator

Principles and best practices we’ve implemented:

1. Ease of Use: An interface that allows required actions to be performed in just a few clicks.

2. Diverse Yield Sources: Strategies include multiple yield sources to diversify risk and maximize returns.

3. Limited but Reliable Options: Set of strategies focus on major coins and tokens, with yield sources selected based on performance, stability, and security.

Integration

Combining these approaches offers several advantages and unique features:

1. External rewards reduce required ABRA token emissions, making Cadabra revenue-generating and more sustainable from the outset. We don’t need to mint tokens for voting rewards; instead, we derive yields from external sources and distribute them to users. In other words, for a project to grow successfully, it must earn rather than rely entirely on token emissions. We solve this by partially funding protocol yields through external protocols.

2. Rebalancing liquidity across protocols is essential for maintaining strategy yields at optimal levels. We have implemented and automated a “Wisdom of the Crowd” approach, where multiple independent judgments yield the most accurate decisions or forecasts. Users of Cadabra decide how to rebalance funds through voting. This is adding utility and increasing the appeal of the ABRA token.

Conclusion

Cadabra 2.0 combines proven ve(3;3) tokenomics mechanics with yield aggregator capabilities to create a sustainable platform that generates value from the start. By combining ABRA token emissions with external protocol yields, we minimize inflationary risks and foster organic demand for the token.

This model addresses the reliance on token emissions, focusing on genuine yield, sustainable growth, and benefits for all ecosystem participants.

By integrating external protocol yields with ve(3;3) tokenomics, Cadabra achieves:

• Reduced inflationary risks while maintaining demand for ABRA tokens within the protocol.

• Attractive APR (yields) from the project’s launch.

• Sustainable development without exclusive reliance on token emissions.