APR Boosting

Cadabra Strategy Boosting: Supercharge Your Yields!

This guide explains how you can earn significantly higher Annual Percentage Rates (APRs) on your Cadabra strategy deposits by also providing liquidity to the ABRA/USDT pool.

What is Boosting?

Boosting allows you to earn a higher APR on the assets you've deposited into Cadabra's yield strategies. The core idea is simple: if you support the Cadabra ecosystem by providing liquidity to the ABRA/USDT pool, you become eligible for boosted APRs on your strategy deposits.

How Does Boosting Work?

1. Provide Liquidity to ABRA/USDT: To start, you need to add liquidity to the ABRA/USDT pool.

2. Secure Your "Fixed Share": When you add liquidity, you "fix" a percentage share of the ABRA/USDT pool at that moment. This is your "Fixed Share." For example, if the pool has $100,000 in Total Value Locked (TVL) and you add $100,000, the pool TVL becomes $200,000, and your Fixed Share is 50%.

3. Determine Your "Working Balance": Your Fixed Share is then used to calculate your "Working Balance." The Working Balance is the maximum amount of your strategy deposits that are eligible for the boosted APR. It's calculated as:Working Balance = Total TVL of ABRA/USDT Pool * Your Fixed ShareContinuing the example: If the pool TVL is $200,000 and your Fixed Share is 50%, your Working Balance is $100,000 ($200,000 * 0.50).

4. Dynamic Growth: A key feature is that your Working Balance scales dynamically with the TVL of the ABRA/USDT pool. If the pool's TVL grows (e.g., to $400,000 in the example), your Working Balance also increases, even if you don't add more liquidity yourself.Example: If the ABRA/USDT pool TVL grows to $400,000, and your Fixed Share remains 50%, your Working Balance becomes $200,000 ($400,000 * 0.50). This means you can now have up to $200,000 in strategy deposits earning a boosted APR.

5. Boost Your Strategy Deposits: Once you have a Working Balance, the deposits you make into any Cadabra yield strategies (it doesn't matter which ones) up to the amount of your Working Balance will receive a boosted APR. The boost does not apply to the liquidity you put into the ABRA/USDT pool itself; it applies to your other strategy deposits.

What are the Benefits?

• Significantly Increased APR: Earn a higher yield on your existing and future strategy deposits.

• Rewards for Early Liquidity Providers: Your Working Balance (and thus your capacity for boosted yields) can grow if the ABRA/USDT pool's TVL increases, even if you don't personally add more liquidity. This rewards those who support the pool early.

• Support the Cadabra Ecosystem: By providing liquidity to ABRA/USDT, you help strengthen the Cadabra platform.

How Much is the Boost?

• The aim is to provide a boost of up to 2x your original APR. For example, a 10% APR could become 20%.

• The actual boost percentage can vary. It depends on the availability of ABRA tokens (from referral and holder pools) used to fund these boosts. If many users are utilizing the boost and the token supply is stretched, the boost might be slightly lower (e.g., 1.8x or 1.5x the original APR).

Examples:

• Scenario 1: Adding Liquidity & Boosting Strategies

  • The ABRA/USDT pool TVL is $100,000.

  • You add $100,000 to the ABRA/USDT pool.

  • The new pool TVL is $200,000, and your Fixed Share is 50%.

  • Your Working Balance is $200,000 * 50% = $100,000.

  • This means up to $100,000 of your deposits in other Cadabra strategies (e.g., a USDC strategy) will now receive the boosted APR. If the maximum boost is available, every dollar up to $100,000 in these strategies gets the full boost (potentially doubling its APR).

• Scenario 2: Already Have Strategy Deposits, Wanting a Boost

  • You have $100,000 in a USDC strategy earning 10% APR.

  • To boost this APR, you add $100,000 of liquidity to the ABRA/USDT pool. (Let's assume the pool TVL becomes $200,000 after your addition, making your Fixed Share 50%).

  • Your Working Balance becomes $200,000 * 50% = $100,000.

  • Since your $100,000 Working Balance fully covers your $100,000 USDC strategy deposit, your entire USDC strategy deposit now qualifies for the full boost. Your APR could go from 10% to 20%.

• Scenario 3: Strategy Deposits Exceed Working Balance

  • You have $200,000 in a USDC strategy.

  • Your Working Balance (derived from your ABRA/USDT LP position) is $100,000.

  • Even if the maximum boost is 2x, you won't get a 2x boost on the entire $200,000. Instead, the boost is applied proportionally. In this case, you might get a 1.5x APR boost on your total USDC strategy deposit (turning 10% into 15%). This is because only half of your strategy deposit ($100,000 out of $200,000) is covered by your Working Balance for the maximum boost.

By participating in ABRA/USDT liquidity provision, you not only contribute to the protocol's health but also unlock enhanced earning potential across your Cadabra investments.