High yield at the launch of Cadabra 2.0

Cadabra operates on top of underlying protocols, directing strategy liquidity and collecting yield.

A logical question arises: why users just not invest directly in the external protocols? The answer is simple: Cadabra provides a more user-friendly way and more yield.

Why is it simpler and more convenient?

We have simplified interactions with underlying protocols. With Cadabra, you don’t need to worry about where and how to invest, in which tokens or amounts, or how to optimize yield levels.

Cadabra offers an user-friendly interface for providing liquidity and earning passive yield. You select a strategy based on your preferences, desired yield, and risk level, and make a deposit in any token. The platform then calculates the necessary investment volumes, executes swaps at the most favorable rates, starts collecting yield from the underlying protocols, and distributes ABRA tokens as rewards for liquidity provision.

Cadabra 2.0 introduces weekly ABRA token emissions. Why is this necessary and beneficial?

We identify two key criteria for Cadabra’s success:

• Significant liquidity in strategies

• Utility and development of the native ABRA token

This resembles the classic chicken-and-egg problem: liquidity requires a token in demand, while the utility and demand for the ABRA token depend on liquidity.

We see the solution in creating yield higher than in the original (external) protocols:

• To attract liquidity, the platform must offer yield above market rates.

• Attracted liquidity enhances voting attractiveness and increases demand for ABRA tokens.

Achieving this is impossible without token emissions. We are aware of inflationary risks, which is why we reduce token emissions over time, while supporting the token through yield from underlying protocols.

Another important goal is attracting users at the start of the project. Our tokenomics model is designed to provide maximum rewards for liquidity providers during the initial phase:

• Increased rewards during the first month

• Airdrops

• Referral program

• Bonuses for continuous liquidity provision (Holder reward)

Financial loop in Cadabra Finance

Once a certain liquidity level is achieved, the ABRA token and Cadabra platform are expected to reach "self-sustainability" and stable growth.

Strategies benefit liquidity providers and collect yield from underlying protocols -> Yield from these protocols is distributed based on voting -> To participate in voting, users must acquire and lock ABRA tokens, which creates demand and positively impacts the ABRA token -> The ABRA token’s price influences the dollar-equivalent yield of strategies -> High APR attracts new liquidity providers, closing the loop of sustainable growth.

ABRA emission + Yield from external protocols = Higher rewards

In short, we believe this model helps achieve Cadabra’s sustainable development.

Simply put, for any DeFi project to succeed in the long term, it must generate value as a product, not rely solely on token emissions. At Cadabra Finance, we address this challenge by ensuring that protocol yield is supported by yield from underlying protocols.

Cadabra uses ABRA token emissions to attract users and offsets inflationary risks through integration of the proven ve(3;3) tokenomics model and yield from external protocols.

This is what makes Cadabra unique and why we separate yield streams.

High strategy APR

APR depends on the number of ABRA tokens allocated from emissions to a given strategy. In ve(3;3) tokenomics strategy APR directly depends on voting results. APR is also influenced by the reward token’s price and liquidity in strategies.

At the launch of Cadabra 2.0 to attract new liquidity we will try to show high yields.