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Wanna do some drugs? π
Amongst all the noise and hype around the #Arb airdrop, one protocol has not only caught my eye, but my attention.
Truthfully, I feel underexposed to this project & I'm going to tell you why.
Let's drop a tab on @0xAcidDAO
A thread π§΅π
1/28
Amongst all the noise and hype around the #Arb airdrop, one protocol has not only caught my eye, but my attention.
Truthfully, I feel underexposed to this project & I'm going to tell you why.
Let's drop a tab on @0xAcidDAO
A thread π§΅π
1/28
@0xAcidDAO So first things first, the #ETH Shapella upgrade is set to go ahead on April 12th.
@LouisCooper_ covers the basics!π
But, TL;DR π¬
A shit tonne of staked #ETH ($27bn) will be unlocked, meaning the fight to offer the highest APR's by LSDs is on.
buff.ly/3TsckJO
2/28
@LouisCooper_ covers the basics!π
But, TL;DR π¬
A shit tonne of staked #ETH ($27bn) will be unlocked, meaning the fight to offer the highest APR's by LSDs is on.
buff.ly/3TsckJO
2/28
@0xAcidDAO @LouisCooper_ So, having read the above, you should understand that:
π You need 32E to be validator on the #ETH network
π Non-validators use LSD's protocols to stake
π LSD's compete to pay out the highest APR's
LSD means "Liquid Staking Derivatives".
Stay with me!
3/28
π You need 32E to be validator on the #ETH network
π Non-validators use LSD's protocols to stake
π LSD's compete to pay out the highest APR's
LSD means "Liquid Staking Derivatives".
Stay with me!
3/28
@0xAcidDAO @LouisCooper_ So, we've set the scene with the upcoming #ETH upgrade and why there is a need for LSD Protocols.
Now, there are a lot of LSD Projects out there, so what makes $ACID special?
Well, how about this?
All of the protocol's revenue is distributed back to $ACID stakers.
4/28
Now, there are a lot of LSD Projects out there, so what makes $ACID special?
Well, how about this?
All of the protocol's revenue is distributed back to $ACID stakers.
4/28
@0xAcidDAO @LouisCooper_ As with any deep dive, let's start with the basics.
WTF is @0xAcidDAO? β οΈ
$ACID is an LSD Protocol aiming to deliver maximum yield profits to token holders with innovative revenue models. $ACID incorporates bonds, real-yield, esToken and lending to increase yields.
5/28
WTF is @0xAcidDAO? β οΈ
$ACID is an LSD Protocol aiming to deliver maximum yield profits to token holders with innovative revenue models. $ACID incorporates bonds, real-yield, esToken and lending to increase yields.
5/28
@0xAcidDAO @LouisCooper_ First up, let's look at Bonding π°
In short, by locking up a certain amount of tokens, the protocol will provide you with additional rewards or benefits.
The issuance of bonds means $ACID can acquire its own liquidity ($) and hold more LSD (ETH related) assets.
But why?
6/28
In short, by locking up a certain amount of tokens, the protocol will provide you with additional rewards or benefits.
The issuance of bonds means $ACID can acquire its own liquidity ($) and hold more LSD (ETH related) assets.
But why?
6/28
@0xAcidDAO @LouisCooper_ Well, issuing bonds is used to raise capital, helping the issuer pursue more opportunities and drive growth.
By purchasing these bonds, the bond holder is given a higher value backing to his/her $ACID token.
But what does it mean to the person "bonding" their LSD assets?
7/28
By purchasing these bonds, the bond holder is given a higher value backing to his/her $ACID token.
But what does it mean to the person "bonding" their LSD assets?
7/28
@0xAcidDAO @LouisCooper_ In the example below, the issuer is giving the bonder a nearly ~10% discount on $ACID by bonding $ETH
The payout asset $ACID, is subject to vesting ~1/2 days.
#0xAcid will try to scoop up as much #ETH as possible, enhancing ETH security through staking!
8/28
The payout asset $ACID, is subject to vesting ~1/2 days.
#0xAcid will try to scoop up as much #ETH as possible, enhancing ETH security through staking!
8/28
@0xAcidDAO @LouisCooper_ There are risks and bonding is typically seen as a short-term strategy, which requires constant monitoring to be profitable.
Fluctuations in the price of $ACID could make bonding unprofitable, but when working efficiently, the potential rewards can be significant.
9/28
Fluctuations in the price of $ACID could make bonding unprofitable, but when working efficiently, the potential rewards can be significant.
9/28
@0xAcidDAO @LouisCooper_ Let's talk about Vesting with $esACID βοΈ
Staking $ACID generates $esACID, in addition to the income from ETH.
$esACID can either be exchanged back to $ACID or used for the protocol governance rights.
Through vesting, this can reduce selling pressure on $ACID.
10/28
Staking $ACID generates $esACID, in addition to the income from ETH.
$esACID can either be exchanged back to $ACID or used for the protocol governance rights.
Through vesting, this can reduce selling pressure on $ACID.
10/28
@0xAcidDAO @LouisCooper_ Right now the APR for $esACID is ~3,000%+ making it highly lucrative to stake your $ACID.
To vest $esACID, 200% of ACID must first be staked. When fulfilled, vesting (30 days) commences, reducing sell pressure.
So, if you want to vest 100 $esACID you stake 200 $ACID.
11/28
To vest $esACID, 200% of ACID must first be staked. When fulfilled, vesting (30 days) commences, reducing sell pressure.
So, if you want to vest 100 $esACID you stake 200 $ACID.
11/28
@0xAcidDAO @LouisCooper_ Now, there's another way to earn $esACID and that is through Staking & Lock-Ups.
π Lock-Ups = ETH/stETH and $esACID rewards.
π₯© Staking = $esACID rewards.
The longer you lock up your $ACID, the higher the rewards through Yield Boosts/Bonuses!
Here's how that looks:
12/28
π Lock-Ups = ETH/stETH and $esACID rewards.
π₯© Staking = $esACID rewards.
The longer you lock up your $ACID, the higher the rewards through Yield Boosts/Bonuses!
Here's how that looks:
12/28
@0xAcidDAO @LouisCooper_ πLocking Durations:
β° 1 Month = 15%
β° 3 Months = 30%
β° 6 Months = 50%
β° 12 Months = 100%
You can claim AND lock the rewards again, with no impact on the bonus rewards earned through staking.
There's also another little secret, I'll tell you at the end.
13/28
β° 1 Month = 15%
β° 3 Months = 30%
β° 6 Months = 50%
β° 12 Months = 100%
You can claim AND lock the rewards again, with no impact on the bonus rewards earned through staking.
There's also another little secret, I'll tell you at the end.
13/28
@0xAcidDAO @LouisCooper_ Staking π₯©
By staking, you support the network and earn rewards.
Simple, easy, you know this, you've done it before.
All profits (100%) generated are distributed to those who have staked and locked-up $ACID, which is paid in ETH (or stETH).
It's perfect game theory.
14/28
By staking, you support the network and earn rewards.
Simple, easy, you know this, you've done it before.
All profits (100%) generated are distributed to those who have staked and locked-up $ACID, which is paid in ETH (or stETH).
It's perfect game theory.
14/28
@0xAcidDAO @LouisCooper_ Another really cool feature to $ACID is the Lending aspect (coming soon)!
In order to free up $ACID, holders can use their $ACID at collateral to borrow wstETH.
The interest charged by the lending function will then in turn generate profits for the 0xACID.
π§
15/28
In order to free up $ACID, holders can use their $ACID at collateral to borrow wstETH.
The interest charged by the lending function will then in turn generate profits for the 0xACID.
π§
15/28
@0xAcidDAO @LouisCooper_ The max amount of wstETH you can borrow is 40% of the backing price of $ACID, with a liquidation threshold of 50%.
When a position is liquidated, $ACID is burnt, destroyed, forever π₯
So, get liquidated, lower $ACID supply.
What a sick and twisted mechanism, I love it.
16/28
When a position is liquidated, $ACID is burnt, destroyed, forever π₯
So, get liquidated, lower $ACID supply.
What a sick and twisted mechanism, I love it.
16/28
@0xAcidDAO @LouisCooper_ $ACID protocol is really complex, but also the most simple thing I've ever had the pleasure of using.
Why settle for ordinary LSD assets (stETH, cbETH) yields of 4% APY, when you can go full degen and earn 10-30% APY, paid out in LSD-assets, stETH, ETH and esACID.
17/28
Why settle for ordinary LSD assets (stETH, cbETH) yields of 4% APY, when you can go full degen and earn 10-30% APY, paid out in LSD-assets, stETH, ETH and esACID.
17/28
@0xAcidDAO @LouisCooper_ Now, let's have a chat about Real Yield π
As you expect, $ACID only survives if it can provide long-term sustainable returns on LSD assets.
The strategy is fairly simple. Expand ETH denominated holdings as much as possible.
But how?
18/28
As you expect, $ACID only survives if it can provide long-term sustainable returns on LSD assets.
The strategy is fairly simple. Expand ETH denominated holdings as much as possible.
But how?
18/28
@0xAcidDAO @LouisCooper_ Partnerships will be key, each varying in risk π€
For e.g. leveraging @pendle_fi and supplying liquidity to their #LSD pools for rewards up to 109%.
Certainly deemed riskier than safe plays on @AuraFinance and @fraxfinance, but fruitful.
buff.ly/3Z43G5t
19/28
For e.g. leveraging @pendle_fi and supplying liquidity to their #LSD pools for rewards up to 109%.
Certainly deemed riskier than safe plays on @AuraFinance and @fraxfinance, but fruitful.
buff.ly/3Z43G5t
19/28
@0xAcidDAO @LouisCooper_ @pendle_fi @AuraFinance @fraxfinance So, what about the future? The focus will be on:
βοΈ Deploying funds to support LSD start-ups
βοΈ Increase Real Yield Strategies
βοΈ DAO Governance
The team seems nimble, agile and they move FAST, as shown with the activity with @pendle_fi and @CamelotDEX
20/28
βοΈ Deploying funds to support LSD start-ups
βοΈ Increase Real Yield Strategies
βοΈ DAO Governance
The team seems nimble, agile and they move FAST, as shown with the activity with @pendle_fi and @CamelotDEX
20/28
@0xAcidDAO @LouisCooper_ @pendle_fi @AuraFinance @fraxfinance @CamelotDEX Tokenomics time! πͺ
- Total Supply: Unlimited
- Initial Supply: 7,370 $ACID
- Token Sale: 5,000 $ACID
- Price: $1,238
- FDV Market Cap: ~$12M
- Circulating MC: ~$1.7M
Considering the yields, $ACID feels grossly undervalued.
21/28
- Total Supply: Unlimited
- Initial Supply: 7,370 $ACID
- Token Sale: 5,000 $ACID
- Price: $1,238
- FDV Market Cap: ~$12M
- Circulating MC: ~$1.7M
Considering the yields, $ACID feels grossly undervalued.
21/28
@0xAcidDAO @LouisCooper_ @pendle_fi @AuraFinance @fraxfinance @CamelotDEX It's worth us talking about the team too.
The Toxin Lab team are in charge of $ACID, their previous success being CongruentFi, which in the last run hit a Market Cap of $150M+ with a treasury of over $40M.
The team are smart, and IMO have branded this protocol perfectly.
22/28
The Toxin Lab team are in charge of $ACID, their previous success being CongruentFi, which in the last run hit a Market Cap of $150M+ with a treasury of over $40M.
The team are smart, and IMO have branded this protocol perfectly.
22/28
@0xAcidDAO @LouisCooper_ @pendle_fi @AuraFinance @fraxfinance @CamelotDEX $ACID launched on #Arb in March 2023, after hitting a hard cap of 4,000 ETH in 15 hours, selling out the token allocation offered. Hype.
ACID is the βLSD of LSDsβ and after a the #Shapella upgrade, I can see a big chunk of #ETH finding it's way to this protocol.
23/28
ACID is the βLSD of LSDsβ and after a the #Shapella upgrade, I can see a big chunk of #ETH finding it's way to this protocol.
23/28
@0xAcidDAO @LouisCooper_ @pendle_fi @AuraFinance @fraxfinance @CamelotDEX Here's the chart π
If you told me that $ACID will be trading for five figures this time next year, I wouldn't be surprised.
Be sure to dive into the analytics on @DuneAnalytics:
buff.ly/3FDvWVC
A lot of ETH might soon by finding a new home with @0xAcidDAO.
24/28
If you told me that $ACID will be trading for five figures this time next year, I wouldn't be surprised.
Be sure to dive into the analytics on @DuneAnalytics:
buff.ly/3FDvWVC
A lot of ETH might soon by finding a new home with @0xAcidDAO.
24/28
@0xAcidDAO @LouisCooper_ @pendle_fi @AuraFinance @fraxfinance @CamelotDEX @DuneAnalytics So, what else have @0xAcidDAO and their community have been up to?
Well...
1. Dune Dashboard, created by @0xplok
2. Community Thread Competition (Ironic)
3. Offering a Nitro Pool on @CamelotDEX
4. Partnering with @pendle_fi
$ACID only launched in March
25/28
Well...
1. Dune Dashboard, created by @0xplok
2. Community Thread Competition (Ironic)
3. Offering a Nitro Pool on @CamelotDEX
4. Partnering with @pendle_fi
$ACID only launched in March
25/28
@0xAcidDAO @LouisCooper_ @pendle_fi @AuraFinance @fraxfinance @CamelotDEX @DuneAnalytics @0xplok Saving the best til last...
@0xAcidDAO just announced the Bond Dividend Mechanism, where 10% of all Bond sales will be added to the dividend pool in the form of wstETH and distributed to $ACID lockers.
The APR of wstETH will be increased from 10% to between 20% to 100%!
26/28
@0xAcidDAO just announced the Bond Dividend Mechanism, where 10% of all Bond sales will be added to the dividend pool in the form of wstETH and distributed to $ACID lockers.
The APR of wstETH will be increased from 10% to between 20% to 100%!
26/28
@0xAcidDAO @LouisCooper_ @pendle_fi @AuraFinance @fraxfinance @CamelotDEX @DuneAnalytics @0xplok Thank you for reading and I hope you enjoyed this thread.
Please Like, RT and tell me what you think about @0xAcidDAO?
Quick Links βοΈ
π₯οΈ buff.ly/3loLJRo
π¦ @0xAcidDAO
π» buff.ly/3JVvHYH
π buff.ly/3ZTooGl
Buy on @SushiSwap
27/28
Please Like, RT and tell me what you think about @0xAcidDAO?
Quick Links βοΈ
π₯οΈ buff.ly/3loLJRo
π¦ @0xAcidDAO
π» buff.ly/3JVvHYH
π buff.ly/3ZTooGl
Buy on @SushiSwap
27/28
@0xAcidDAO @LouisCooper_ @pendle_fi @AuraFinance @fraxfinance @CamelotDEX @DuneAnalytics @0xplok @SushiSwap Tagging some frens, who I think might like this thread.
@DefiIgnas
@xpnp404
@WinterSoldierxz
@ViktorDefi
@thedailydegenhq
@Tanaka_L2
@Slappjakke
@SherifDefi
@RiddlerDeFi
@monosarin
@hc_trades
@giba_machado
@EricCryptoman
@eli5_defi
@DegenCamp
@DeFiMinty
@rush_hour51
28/28
@DefiIgnas
@xpnp404
@WinterSoldierxz
@ViktorDefi
@thedailydegenhq
@Tanaka_L2
@Slappjakke
@SherifDefi
@RiddlerDeFi
@monosarin
@hc_trades
@giba_machado
@EricCryptoman
@eli5_defi
@DegenCamp
@DeFiMinty
@rush_hour51
28/28
#acidthreadchallenge π
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