0xAcid: Pledge agreement combining compound assets + real income

The upcoming Ethereum Shanghai upgrade in March is expected to bring more heat to the LSD circuit, and many new LSD projects are seizing the opportunity to join the fray.

0xAcid is a management protocol designed to maximize the return on LSD assets, striving to bring users a return far higher than ordinary LSD assets, will be in Arbitrum and Ethereum main network live. Token design is critical to a DeFi protocol. Currently only a top DeFi protocol like Uniswap can maintain a price without looking for value for its tokens. Other DeFi protocols are seeking to Yield Real Yield to their Token holders.

All revenue generated by 0xAcid is distributed to holders of its main Token, ACID. According to the official introduction, 0xAcid can provide users with 2-6 times the return of ordinary LSD assets such as stETH and cbETH. How will such return be realized?

Compound asset management strategy

0xAcid generates continuous income through a set of portfolio strategies:

- Manage and accumulate a large number of LSD assets such as stETH, rETH and frxETH to obtain Ethereum node income;

- Invest the assets under management into DeFi to obtain income. 90% is invested in projects with stable return and low risk, and 10% is invested in projects with stable return and slightly higher risk, such as Curve and Balancer. At the initial stage of going online, the main DeFi strategy adopted by 0xAcid is to convert 30% of assets into frxETH into Frax and 70% into wstETH 3pool in Aura Pool.

-0xAcid protocol contains protocol liquidity control mechanism to obtain most of the Token swap proceeds. 0xAcid will add LP to Sushiswap, hold most of the ACID LP tokens, and set a swap commission of 1%;

-0xAcid has a lending service that allows users to pledge ACID and lend out wstETH, charging interest on loans, and 100% distribution to the ACID pledge;

- Gains from the appreciation of the underlying support asset ETH.

For Token holders, they can also pledge the lock bin ACID and get high esACID reward. esACID can be converted into ACID to sell or continue the pledge.

Design of Token mechanism combining multiple real income

The 0xAcid protocol has two main tokens, ACID and esACID. There is no cap on the total amount of ACID, the initial supply is 7500, the Public sale is 5000, the team retains 750 and pledged to lock for 1 year, used to provide initial liquidity 250, DAO Treasury retains 1000 for pledge but not locked, another 500 for airdrop and publicity.

ACID will be rapidly generated mainly from esACID emissions at the initial phase of the protocol's rollout, and esACID emissions will gradually decline over time. During the first week online, 2000 esACID will be discharged daily, followed by 1500 esacid per day during the second week, 1000 esacid per day during the third week, and 500 esacid per day after the third week. The specific amount of esacid discharged can be modified by the DAO vote.

ACID The real return to the holder

All profits generated by the 0xACID agreement are distributed to holders of pledged and locked ACID in the form of ETH or stETH. In addition, users who pledge ACID can also receive esACID incentives. The longer the pledge time, the more rewards can be obtained, and the maximum locking time is 1 year.

esACID has two functions, the first is to participate in the governance of the protocol, the second is to convert esACID belonging to ACID.

In order to convert esACID to ACID, 200% ACID needs to be pledged first. Once the pledge requirements are met, the conversion process begins and esACID is linearly converted to ACID within 30 days. By using bonds to bring liquidity, holders can lock in their ACID holdings and bond them into a bond. After buying discounted ACID bonds, users can obtain ACID tokens that are released gradually. This process brings liquidity and more LSD assets to 0xAcid.

Pledge loan

The user can borrow the wstETH by pledging ACID, using ACID as collateral, in which the 0xACID protocol will charge interest and distribute it to the ACID holder.    

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