New Updates To The DAOventures Strategies — Citadel, Stonks & More
DAOventures believes in the adoption of changes happening in the world of DeFi. Our product developers make sure that we incorporate the latest updates in our investment products to provide our users with MORE profit.
This article will outline some new implementations that apply to all our crypto ETF & DAO (Layer 2) strategies, including Metaverse Farmer “MVF”, Citadel V2, Stonks V2(Tech Stonks), and Golden Cross(to be announced).
- Lower gas fees for deposit & withdrawal
- No withdrawal fees
- Watermark for fair fee collection
- MEV “sandwich attack”protection upon withdrawal
- 2-layer strategies
Now, if you want to know more, let’s dive in!
Lower gas fees for deposit & withdrawal
In other protocols, users share is distributed by getting the total value of the strategy, getting the total supply of the LP token and minting the LP token. Citadel invests in 4 farms, so if the user wants to deposit/withdraw, the gas is costly.
In this new implementation on our smart contract, it is the admin who pays the gas fees one time for getting the total value of the strategy. Plus, the percentage of stablecoins keep in the contract increase to 3%, and it is possible to swap insufficient stablecoins from other available stablecoins. So users don’t have to experience high gas fee due to low funds in strategies.
A win-win solution.
Important Points to Note:
- The total value is the sum of all farms that invest by strategy. More farms mean more gas to get the values. Since our strategies are ETF-based, it is normal that our strategies invest into more than 1 farm.
- Stonks invest in 7 Mirror Protocol farms. It will be costly to get the value from 7 farms. In the new implementation, workload from points 1 to 4 is delegated to the admin of the contract.
- The user only pays gas fees for transferring stablecoins into the contract plus some records. Around 50–60% gas fees cheaper than Citadel V1 & Stonks.
No withdrawal fees
In Citadel V1 & FAANG, there would be a deducted 20% if the user gets profit upon withdrawal. This new implementation will remove withdrawal fees and instead replace them with profit-sharing fees that are based on Strategy’s watermark.
“The high-water mark ensures the manager does not get paid large sums for poor performance. If the manager loses money over a period, he must get the fund above the high-water mark before receiving a performance bonus from the assets under management (AUM).”
Watermark is a method used in traditional hedge funds trading, we bring it into decentralized finance. In our words, watermark = total value locked(TVL) at the moment.
Through this new updates, strategy only collects fees when the current TVL is greater than the last recorded watermark.
MEV protection upon withdrawal
“Maximal (formerly “miner”) extractable value (MEV) refers to the maximum value that can be extracted from block production in excess of the standard block reward and gas fees by including, excluding, and changing the order of transactions in a block.”
Miner extractable value “MEV” is a technique that can make our token loss when do swapping on-chain with decentralized exchange “DeX”. In a nutshell, it makes users receive tokens way less than expected after the swap.
In order to tackle this, we include slippage tolerance for each swap in withdrawal, similar to set slippage on the Uniswap swap page, to make sure that the token received is as expected.
These implementations on our strategies, aka “Layer 2 Strategies” include Metaverse Farmer(MVF), Citadel V2, Tech Stonks, and Golden Cross(to be announced).
These strategies will invest back in layer 1 strategies, which are basically auto-compounders for LP tokens. One of the advantages of these layer 1 strategies is to collect yield farming fees so that our treasury has the ability to buy back more DVD token to support our community.
DAOventures is a multi-chain DeFi investing platform for fund managers and crypto investors. Its mission is to make DeFi simpler, more accessible, and inclusive. DAOventures is a team of engineers, researchers, crypto-investors, DeFi & NFT adopters, and problem solvers who want to build and accelerate the future of money, together.