Liquid Wrappers
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abcTOKENs are liquid wrappers for their corresponding ve token.
abcRAM is corresponding to RAM
abcPHAR is corresponding to PHAR
liveTHE is corresponding to THE
and so on.
When users deposit their veNFT, they automatically receive a proportional amount of the abcTOKEN (abctoken is minted 1:1 with the exchange token). abcTOKENs are a tokenized, fungible representation of 1 veNFT locked with Abacus. Abacus automatically converts any rebases into abcTOKENs, and passes this along to abcTOKEN depositers (fee distributor and autocompounder).
Are a tokenized version of veNFT
Abacus automatically converts rebases into the abcTOKEN proportional to the users staked amount.
If a user deposits the exchange token into Abacus, that token is locked into Abacus's veNFT as veNFT, in exchange the user receives proportional amount of abcTOKEN.
can be staked into the platform to receive revenue
Rather than staking abcTOKEN, users can also choose to contribute to the exchange correlated liquidity pool token/abcTOKEN for high APR in fees and emissions.
Conversions and redemptions are closed 6 hours before epoch flip and 6 hours after epoch flip.
Conversions are the exit from a veTOKEN to abcTOKEN method. Conversions release sell pressure from the dex token by adding another exit channel which is intrinstically connected to the health of the dex.
The main function for Abacus is providing liquid abcTOKENs through locked conversion. Locked veTOKENs can be converted to liquid abcTOKENs to be swapped, added as liquidity or staked in our autocompounder vault.
This example uses liveTHE but can be applied to all of Abacus's wrappers
When converting veTHE to liveTHE, a dynamic conversion fee is applied. The fee is influenced by the balance of the stable LP on THENA and ranges from a minimum of 12.5% to a maximum of 70%. The dynamic conversion fee formula is:
Dynamic fee = ($liveTHE_balance / $THE_balance) * min_conversion_fee
Example:
If the balance in the liveTHE/THE LP is 1000 $THE and 2000 $liveTHE, the conversion fee would be:
Conversion fee = (2000 / 1000) * 12.5% = 2 * 12.5% = 25%
Redemptions are entryway for liquid abc token holders to redeem for additional veTOKENs on top of the usual 1:1 conversion. Redemptions add buy pressure to the abcTOKEN because the abcTOKEN must be purchased from the market to redeem through.
Redemptions can provide a higher veTOKEN return if the peg is low.
Redemptions have a flat fee of 3.5%
This vault type only exists for the live models from Abacus and will be deprecated when they migrate.
Abacus's fee distributor streams rewards from the token wrapper's performance on the underlying dex.
The auto-compounder represents another stride towards optimization and streamlining. Stake your abc tokens in our vault, and it will automatically compound all rewards generated by our veNFT into more of the abctoken.
Upon depositing abctoken into the vault, you'll receive a receipt token as proof of your deposit. The number of receipt tokens you receive is determined by the quantity of abctokens already in the pool and the current total supply of the receipt token. This ratio is initially set at 1 receipt token = 1 abctoken but will gradually increase over time due to compounding.
The ratio only changes as compounding events occur, which are then distributed to the pool and divided equally among all receipt token holders. This leads to each receipt token being worth more abctoken (resulting in an increased share of abctoken).
Here's how the compounding process works:
Exchange rewards from bribes/fees are converted to abcTOKEN or the underlying dex token if abcTOKEN is over peg.
Rebases for the abcTOKEN are streamed.
It's important to note that active harvesting of the vault is required to enable auto-compounding.
