Cadabra 2.0 vs 1.0. Advantages and Differences

DeFi provides unique opportunities for earning through decentralized financial tools. Our goal is to make these opportunities accessible and straightforward for everyone. Cadabra 2.0 represents a reimagining and evolution of the platform’s core principles and ideas:

• Ease of earning: We offer user-friendly tools to earn in DeFi, reducing complexity.

• Maximum decentralization: Smart contracts and user voting determine key decisions in the platform's daily operations.

• Promotion activity and community growth: An enhanced referral program enables everyone to build a successful team.

• Sustainable development: The platform creates added value by aggregating yields and leveraging the ABRA token’s utility to enable additional rewards.

The main innovation is the integration of ve(3;3) mechanics into the yield aggregator, which was central part in Cadabra 1.0 and remains key in Cadabra 2.0.

Strategies

Strategies remain the main tool for earning on Cadabra platform. They allocate funds on behalf of users into external protocols selected and grouped based on the similarity of their core assets and risk levels.

The key change lies in the technical implementation. We have simplified the structure of our smart contracts and key entities, transitioning to a trusted implementation based on Balancer platform contracts. This approach speeds up the integration of new underlying protocols into strategies.

The main innovation is the separation of passive and active earning methods, which is linked to the integration of ve(3;3) mechanics:

• For users who prefer a "set and forget" approach, simply becoming a liquidity provider in a strategy is sufficient to start earning ABRA tokens as rewards.

• For users seeking more engagement, we have introduced ve(3;3)-style voting based on locked ABRA tokens. This allows users to vote and earn from underlying yield sources.

We believe both methods can offer better outcomes than directly interacting with external protocols.

Additional updates and features:

• ve(3;3) APR: Strategy reward allocation based on user voting. The more votes a strategy receives, the more ABRA tokens are allocated to it, increasing yields for liquidity providers.

• Rebase Rewards: Rewards for locking ABRA as a form of passive yield.

• Holder Bonus: Extra rewards for liquidity providers in the USDT/ABRA liquidity pools.

• Rebalancing Driven by Crowd Wisdom: Underlying protocols often adjust their yields. To maintain optimal rewards, liquidity must be moved between protocols. We’ve implemented an automated approach based on the "Wisdom of the Crowd" principle, where independent judgments lead to accurate decisions or predictions. Thus, rebalancing decisions on Cadabra are guided by user votes.

Tokenomics

The primary update in Cadabra 2.0 is the transition to a weekly token emission model.

Pricing is shifted to liquidity pools, functioning similarly to classic AMM pools. This change simplifies the ABRA token’s mechanics, eliminates complex structures from the first version, and reduces arbitrage losses.

The key innovation is the integration of ve(3;3) tokenomics. Previously, yield from underlying protocols flowed into the ABRA token to increase its value. In version 2, all yield from underlying protocols is distributed directly to users who vote on strategies and sources of yield.

Referral Program

We have revamped the referral program and incorporated tools proven effective in other projects. Your referral rewards are based on rewards earned by your team by liquidity providing and ABRA locking. Referral program became the binary model. Now, users can earn rewards:

• From first- and second-level referrals.

• Through a team bonus, which depends on the activity of the entire structure from unlimited number of referral levels.

These mechanisms help users build successful teams and unlock opportunities for additional rewards.

Sustainable Model

The primary goal of Cadabra 2.0 is long-term development rooted in the platform’s real added value. The platform addresses the challenge of delivering significant rewards internally by leveraging returns from underlying protocols—a critical factor for sustainable growth.

We have combined the proven ve(3;3) tokenomics model with yields from underlying protocols:

• Yields from underlying protocols offset token issuance, reducing inflationary pressure.

• Utility through ve(3;3) mechanics: ABRA is used for voting, earning rewards from underlying protocols, and engaging with other platform features.

Transition to Cadabra 2.0

Cadabra 2.0 represents an evolution of our previous approach. More details about migration of existing users to Cadabra 2.0 you can find by the link.

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Stay with us, join us and explore the new opportunities Cadabra 2.0 has to offer

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Table Summary

Aspect	Cadabra 1.0	Cadabra 2.0
Tokenomics	Single issuance model with limited token supply.	Weekly issuance model with pricing based on AMM-style pools.
Yield Distribution	Yield from underlying protocols flows into the ABRA token to increase its value.	Yield is directly distributed to users who vote on strategies and yield sources.
Strategies		Simplified structure using Balancer contracts; easier integration of new underlying protocols.
Earning Methods	Focused primarily on passive earning through liquidity provision.	Separate passive and active earning options, including ve(3;3)-style voting and rewards.
Voting Mechanism	Not available.	ve(3;3)-style voting to influence strategy yield and protocol rebalancing.
Rebalancing	Automated rebalancing based on in-house algorithms with limited options to rebalance.	Automated rebalancing based on “Wisdom of the Crowd” principles via user voting.
Referral Program	Limited scope and rewards.	Enhanced program with first- and second-level rewards, plus team bonuses.
Holder Rewards	Not available.	Holder Bonus for liquidity providers in USDT/ABRA pools; additional rebase rewards for locking.
Token Utility	Focused on token appreciation and passive yield.	Emphasizes token utility through voting, rewards, and engagement with platform features.
Sustainability	Depended on the increase in the value of tokens and the explosive spin-up of the deflation flywheel.	Long-term growth supported by external yield offsetting token emission.