Short Overview

The Key Innovation of the Cadabra Platform

The main innovation of the Cadabra platform is the use of the ve(3,3) model combined with yield aggregation mechanics. Our strategies work with external protocols to earn Underlying Protocol Rewards (UPR). This combination allows users to participate in the distribution of ABRA token emissions while also earning additional yield from underlying DeFi protocols, which significantly enhances earning potential.

Strategies

Cadabra's strategies allow users to provide liquidity across multiple external protocols simultaneously, providing diversification and maximizing yield. Users can choose from different strategies, each tailored to different asset categories and risk levels. Decisions on reallocating funds across yield sources within strategies are made by Cadabra users through voting.

ve(3,3) Model

The classic ve(3,3) model on the Cadabra platform is used to reward liquidity providers by allocation of ABRA token emissions across various strategies through voting. Users who lock their ABRA tokens can vote for strategies, which influences on the share of emissions directed to a particular strategy. Additionally, they earn Rebase rewards by locking and receive UPR by voting.

Yield Aggregator and Underlying Protocols

In each strategy, the liquidity provided by users is allocated to underlying protocols such as AAVE, Thena, Pendle, and others. Strategies follow a "homogeneity" principle, grouping yield sources based on assets of a similar nature. Underlying Protocol Rewards (UPR) are rewards that Cadabra collects from underlying DeFi protocols where strategies allocate liquidity. These rewards are then gathered and distributed among users who voted for the relevant strategy or yield source. This allows users not only to earn from providing liquidity but also to actively influence their yield by optimizing the distribution of ABRA token emissions and UPR through rebalancing liquidity within strategies.

Earning Opportunities

The combination of the ve(3,3) model and the yield aggregator is Cadabra's key innovation. Thanks to this, the platform offers various earning opportunities:

• Passive yield in ABRA tokens: For liquidity providers in strategies and holders of locked ABRA tokens.

• Active rewards in UPR yield: For voting and influencing the distribution of liquidity across underlying protocols within strategies.

Additional ways to earn include:

• Continuous liquidity provision in USDT/ABRA liquidity pools.

• Referral rewards from team yield.

Investing in Strategies

Investing in a strategy is a form of passive yield. Users select an asset, assess the risk, and invest in a corresponding strategy. They immediately start earning ABRA tokens as rewards for providing liquidity. The APR for strategies depends on the voting results, which determine the share of ABRA tokens allocated from emissions to that strategy.

Strategies based on USDT/ABRA liquidity pools offer additional earnings through a holder bonus.

Holder Bonus

The holder bonus is an additional reward given to users for continuous keeping liquidity in USDT/ABRA liquidity pools. This bonus encourages users to stay in the strategy without withdrawing funds, which may positively affect the stability of the ABRA token. The bonus is calculated based on the amount of liquidity held and the duration of its uninterrupted presence in the strategy. The longer a user keeps their liquidity, the larger the bonus they earn.

ABRA Locking. Rebase rewards

Rebase is also a type of passive yield that users receive for locking their ABRA tokens for a set period. Each holder earns Rebase rewards in ABRA tokens regardless of voting participation. The Rebase rewards for ABRA lockers can be considered a compensatory mechanism to mitigate the risks associated with ABRA token emissions.

Voting

Strategies on the Cadabra platform work with underlying yield sources and distribute their rewards among voters. The amount of rewards depends on the user's share of votes relative to the total votes cast for the strategy. A voter receives a portion of the collected underlying rewards, which are claimed in tokens of the underlying protocols. Voting can be done for an entire strategy or for specific yield sources:

• Voting for a strategy: The user receives a share of the total yield from all underlying sources integrated into the strategy.

• Voting for a specific yield source: The user receives a share from that particular yield source. Voting for specific yield sources can potentially be more profitable if the change in the underlying source APR is correctly predicted. This provides yet another opportunity to boost one's yield.

Referral Program

The Cadabra referral program allows users to earn additional rewards by inviting new participants to the platform. Users who create and grow their team receive referral rewards for the activity of their referred users.

Referral bonuses are distributed in ABRA tokens and depend on the rewards earned by your referral team:

• From strategies (Earning rewards)

• From USDT/ABRA liquidity pools (Farming rewards)

• From ABRA locking (Rebase rewards)

The referral program operates at 3 levels:

• Level 1: Rewards for direct referral activity.

• Level 2: Rewards for the activity of referrals brought in by your direct referrals.

• Team bonus: Rewards based on the yield of their entire binary referral structure (unlimited number of referral levels)

Comparison with Other Protocols

Cadabra differs from many other protocols in that yield earned from underlying protocols addresses the challenge of generating substantial yield within the project itself, which is essential for long-term sustainability. In other words, for any DeFi project to grow sustainably, it must be able to earn independently rather than rely on high emissions of its token. In most cases, high emissions without compensatory mechanisms lead to protocol degradation. At Cadabra Finance, we've solved this problem by ensuring that protocol yield is backed by underlying protocol yield. Cadabra reduces the need for high ABRA token emissions to incentive users by integrating proven ve(3,3) tokenomics and yielding from stable underlying protocols.

Conclusion

Cadabra offers users new and proven tools to earn in DeFi through liquidity provision, voting, and participation in the referral program. The combination of the ve(3,3) model and the yield aggregator allows users to earn additional yield. This integration also addresses the issue of generating substantial yield by the project itself, which is crucial for its long-term development.