🦄 Background on 0xACID:
0xAcid is a community-driven protocol that can run on Arbitrum and Ethereum networks, and all revenue from the protocol will be distributed to token holders. The protocol has no VC participation or monopoly and adopts a fair launch method to prioritize the best interests of the community.
😘0xACID protocol positioning:
Maximize the returns of LSD assets (such as stETH, rETH, frxETH, etc.) and provide returns far higher than ordinary LSD assets (ordinary LSD assets are only about 4-5% APR). With the increase of treasury ETH-related assets, it will have an impact on the entire Ethereum L1 and L2. The agreement holds LSD-related assets for a long time (equivalent to long ETH for a long time) and continues to earn real returns from Ethereum nodes.
All protocol values are based on ETH, and we only focus on the growth of ETH, because we firmly believe that ETH will reach more than $10,000 in the near future.
0xAcid focuses on Ethereum native asset income management and is an efficient and flexible management protocol. Using 0xAcid allows you to get higher returns than staking ETH to protocols such as lido, without liquidation and system internal risks. 0xAcid is built on top of most Ethereum staking protocols and is committed to providing users with stable and sustainable native asset staking returns.
By staking and locking ACID, users can obtain multiple times of ETH node income and high esACID income. While earning excess staking income, users will not miss the dividends of ETH's long-term growth. In short, $ACID is a target that helps users to do long ETH in the long term and obtain high and stable cash flow.
Ordinary LSD assets (such as stETH, cbETH, etc.) can only generate an annualized yield of 4%. However, through 0xACID's staking strategy and dividend mechanism, ACID lockers/stakers can obtain 10-30% ETH income and additional high esACID income.
🐠0xACID Token Economy:
The 0xACID protocol has two main native tokens, $ACID and $esACID, of which $esACID can be converted to $ACID. Protocol governance rights, DAO treasury ownership, protocol dividend rights, output channels: Bond output, esACID can be attributed to ACID.
esACID (Escrowed ACID): Protocol governance rights. It can be converted into ACID and enjoy the same rights and interests as ACID tokens after conversion.
🐳Protocol income sources:
0xACID manages a large number of LSD assets (such as stETH, rETH, cbETH, etc.) and obtains long-term and stable ETH node income.
Defi income, the treasury strategy will pursue the highest rate of return in Defi while ensuring high asset security (90% will be invested in relatively stable return and low-risk projects, and 10% will be invested in slightly higher risk and more stable return projects, including but not limited to Curve, Convex, Aura, Balancer, Pendle, Frax, AAVE, etc.)
LP income, because of the protocol controlled liquidity mechanism (PCL) of the 0xACID protocol, most of the swap income will be obtained by the treasury. LP will be added to Sushiswap, and the swap fee is set to 1%.
0xACID's lending module allows users to pledge ACID and borrow wstETH. The interest generated by the loan will be 100% distributed to ACID pledgers.
ETH appreciation income, Acid's underlying assets are all composed of ETH-related assets. Holding ACID is equivalent to long ETH in the long term.
Staking or locking ACID can earn high esACID returns, and esACID can be converted into ACID for sale or staking.
Ordinary LSD assets only have 4% APR, but through the 0xACID lock-up reward mechanism, ACID lockers can get 10% to 30% ETH APR
💙0xACID’s DeFi model:
Inject ETH into Aura’s Balancer pool related to the LSD asset
Convert ETH to frxETH and then stake it on Frax to obtain sfrxETH to obtain the base interest rate
Convert ETH to wstETH pie using revolving lending strategy in aave V3
🐱Security of the vault:
Multi-signature managed vaults are a common security measure in DeFi. In DeFi, a vault is where assets are stored and strategies are executed. Multi-signature systems require multiple independent private keys, often held by different people. Our multi-signature people are composed of members of Toxin Labs. The members are scattered in different regions. Maintaining a certain degree of distribution in geography and time undoubtedly provides more guarantees for multi-signature security. When executing a transaction, at least a certain number of signers are required to authorize it in order to complete the transaction. Therefore, even if a signer's private key is stolen or leaked, the attacker cannot control the vault alone. This security measure effectively prevents assets from being stolen or misused.
Another benefit of the multi-signature system is that it improves transparency. Because all transactions require the authorization of multiple signatories, all signatories can monitor the vault's transaction activities and ensure that funds are properly managed. In addition, the multi-signature system can prevent internal cheating and misconduct. If a signatory discovers that other signatories have engaged in misconduct, they can refuse to authorize the transaction, thereby preventing the misuse of funds.
🦋0xACID partial pledge and lending rules:
Staking ACID can obtain esACID income. esACID can be attributed to ACID according to the rules. Staking and locking ACID can obtain esACID income + protocol ETH dividends.
100% of the profits from the 0xACID protocol are distributed in the form of ETH (or stETH) to holders who stake and lock ACID tokens.
Lock-up bonus:
After staking and locking, ACID lockers can get different proportions of profit bonuses according to the lock-up period (the bonus applies to ETH and esACID dividends)
The longer the lock-up period, the higher the bonus you will get (please check the APP staking page for the bonus ratio)
Each time you claim a reward, the remaining lock-up time and bonus will be updated, which means that each time you claim a reward, the subsequent bonus will be reduced. When claiming a reward, users can choose to claim the reward and re-lock it, which will not affect the lock-up bonus.
Users can mortgage ACID to borrow wstETH, and borrowing wstETH requires paying interest to the 0xACID protocol
The amount of wstETH that can be borrowed with ACID tokens is calculated based on the backing price of ACID tokens.
The maximum loanable value is 40% of the backing price and the liquidation value is 50%
Assuming the price backing of each ACID token is A, the value of wstETH that can be borrowed is B
B=A*40%
After the liquidation threshold is triggered, the protocol will directly destroy the user's collateral (ACID tokens). The liquidation will not cause selling pressure on ACID, but will also help increase the backing price of ACID (because the supply of ACID will become smaller after the ACID used as collateral is destroyed).
❤️🔥Summary:
If you also believe in the L2 track and believe that ETH will reach $10,000, you can take a look at this little dark horse!