Cadabra 2.0
Cadabra (EN)
Cadabra (EN)
  • Introducing Cadabra
  • Cadabra's mechanics
  • Security and Audit
  • Short Overview
  • Community
  • Roadmap
  • Cadabra v1
  • Articles
    • Cadabra 2.0 vs 1.0. Advantages and Differences
    • High yield at the launch of Cadabra 2.0
    • ABRA emission + External Yield. Complementarity
    • ABRA Locking: why it’s essential and how it increases your yield
    • ABRA locking migration vs Unlocking. What to choose?
    • Strategies boost algorithm
  • Team
  • Strategies
    • Strategies
    • Yield sources
    • Epochs
    • Voting
    • Liquidity Rebalancing
    • Strategies' APR
    • Underlying Protocol Rewards (UPR)
  • Tokenomics
    • ABRA
    • Emission
    • Locking and veABRA
    • Contracts
    • v1 -> v2
  • Earn with Cadabra
    • Yield from Strategies (ABRA)
    • Holder bonus
    • Yield for Voting (UPR)
    • Yield for Locking (Rebase)
    • Referral Program
  • Referral Program
    • Referral Rank
    • Rewards and Bonuses
      • Emission for Referral Rewards
    • Team bonus and Binary Tree
    • v1 -> v2
  • Airdrop
    • Launch Airdrop (season 2)
    • Airdrop (season 3)
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  1. Strategies

Strategies

The core element of Cadabra for earning through liquidity provision.

Last updated 5 months ago

The passive yield from strategies is based on the emission of our utility token, , which is distributed as a reward for providing liquidity. The level of yield for a strategy depends on results — the more votes a strategy receives, the larger the share of ABRA emission is allocated for the strategy.

Strategies follow the principle of "homogeneity" and group yield sources based on by assets of a similar nature. For example, a strategy may include stablecoins with the same risk profile or native network tokens and their liquid derivatives. Based on voting, a strategy rebalances invested funds to maintain a stable yield, as underlying protocols periodically change their APR. Consolidating similar assets or tokens helps mitigate fluctuations and provide a stable, high APR.

Technically, strategies are smart contracts that invest funds into underlying protocols on behalf of the user, while the user owns a share of the strategy’s liquidity through an LP token. Each strategy ensures at the smart contract level that funds can only be allocated to specific protocols. Adding new protocols to strategies occurs with a 3-7 days timelock, giving users time to decide whether to withdraw or keep their funds in the strategy.

ABRA Liquidity pools

Among the strategies available to users, special attention can be given to USDT/ABRA liquidity pools as yield sources.

Liquidity pools are needed to enable trading and asset swapping on decentralized exchanges, where users deposit their assets into a pool and receive rewards in the form of transaction fees and extra incentives.

USDT/ABRA liquidity pools are price-setting pools with stablecoins on the Uniswap v3 platform, using the full-range mode, making them similar to AMM liquidity pools.

The UPR (Underlying Protocol Rewards) comes from swap fees in these pools when users buy or sell ABRA.

Strategies combine several . Rewards collected from underlying protocols (UPR - Underlying Protocol Rewards) are distributed among users who voted. Voting results also determine how liquidity is among the underlying protocols within a strategy.

underlying yield sources
rebalanced
ABRA
voting