Introducing Concentrator by AladdinDAO! Concentrator extends the incredible Curve/Convex ecosystem by helping Convex farmers earn up to 50% more with less hassle and less gas! Yields from multiple Convex pools are concentrated into cvxCRV where they earn maximum rewards while still maintaining exposure to the Curve/Convex ecosystem.
Tell me more…
Concentrator is an entirely new type of auto-compounding vault system, based on a philosophy of farm-and-hold. Rather than selling rewards constantly and buying more of the deposited token, Concentrator helps farmers concentrate yields from multiple Convex vaults into cvxCRV, then leverages auto-compounding to grow those returns even more. When it’s time to withdraw, users can choose from cvxCRV, CRV, CVX or ETH.
Why farm & hold? The typical auto-compounder principle of farm-and-dump, or immediately selling earned reward tokens, is not wise in all cases. Imagine earning Bitcoin as a reward in 2010, and selling it all immediately to buy USD! For the best protocols of today, which will grow to become foundational building blocks of DeFi tomorrow, dumping their tokens now could end up looking just as foolish. Smart farmers use diverse core assets to farm the highest quality DeFi tokens, holding them with conviction, and Concentrator helps them do that with much better returns and much less hassle.
How does it work?
Concentrator accepts Curve LP tokens and deposits them into one or more of our listed Convex vaults, regularly harvesting all associated rewards. Rewards from all deposited vaults are swapped to cvxCRV and then moved into our concentrator vault, where they are staked on Convex and have their rewards regularly auto compounded into more cvxCRV.
With Concentrator, farmers maximize their returns while minimizing their gas and time spent managing positions. Additionally, for farmers in some tax jurisdictions it is very useful to be able to choose when rewards are claimed. Concentrator is permissionless, decentralized, and fully audited, like all great DeFi.
Why this? Why now? Whyyyyyyy?
Since their election last year, AladdinDAO’s boule council of DeFi big brains has been meeting weekly to discuss, debate and determine the best DeFi strategies, opportunities, and protocols. Their research and discussions leak alpha to our community in the same way fire fighting planes leak water on burning forests… but those calls are just the beginning for Aladdin. (Anon, did you know that Aladdin’s Boule research meetings are all freely available on YouTube?)
In addition to our innovative portfolio management system, Aladdin’s team seeks to leverage the insights of the Boule council in other ways, and contribute to the advancement of the DeFi ecosystem by helping community members identify and earn the best DeFi tokens. In this regard, the Curve/Convex ecosystem was a no-brainer to build on. It is one of the most well regarded by the Boule council, coming up again and again across votes, strategy proposals, and general discussions. It’s easy to see why. Curve and Convex are arguably two of the best examples of “Aladdin-approved” protocols: foundational, performing a valuable service, and with grassroots bottom-up communities. The fact that Curve and Convex survive and thrive without bag-holding VCs or other early investors shilling them on Twitter speaks to this as well; they are simply so good they can’t be ignored.
The Aladdin team is excited to leverage its dev superpowers, relentless focus on security, and core farm-and-hold principles to bring a powerful new service to farmers in the Curve/Convex community who wish to earn the most CVX and/or CRV possible. What’s more, Concentrator’s unique approach actually supports the underlying protocols as much as the farmers by encouraging holding and staking, thereby improving the incentive alignment between them and benefiting everyone.
Wait, what about Aladdin?
Aladdin continues to reach for its enormous goals: to cut through the DeFi information overload and asymmetry, the garbage of CryptoTwitter, and to connect real users to the best DeFi protocols, for their mutual benefit. We continue working to leverage the insights of our elected, decentralized group of DeFi geniuses by widely sharing reliable information and providing valuable tools and services to our community.