Concentrator IFO end date declared to make way for groundbreaking Frax partnership!
As Concentrator users may have seen, our sister product CLever recently announced an incredible partnership with Frax Finance, which will soon kick off safe leveraged stablecoin farming based on Concentrator’s best Frax vaults. The fact that this new partnership has come together so fast is amazing news for both CLever and Concentrator, but introduces some timing questions. Launching CLever FRAX while the Concentrator IFO is ongoing would not be ideal because they would be somewhat in competition with each other… but we just can’t wait to support this new farming opportunity! Also wouldn’t it be great if the launch of CLever’s new strategy (which, since it is based on Concentrator, creates a new Concentrator income stream) could accrue some value for veCTR holders? Wat do?
After examining all the possibilities we arrived at a simple solution: we will set a deadline of Oct 31 (Hallowe’en!), after which we will end the IFO by converting all IFO vaults to standard aCRV ones and airdrop any remaining tokens to veCTR holders (excluding AladdinDAO). We can then switch focus to clevUSD without any conflict. By airdropping the remaining tokens (as opposed to, say, burning them) we ensure that AladdinDAO’s already locked share doesn’t end up higher than the target 30%, and we reward the platform’s most committed believers. Airdropped tokens will be vested (linearly) over three months to help smooth out market pricing as much as possible.
Implications
First and foremost, this means that the time to farm CTR will end sooner than anticipated (and it is in fact possible that it will end even before the deadline, if significant new TVL comes to farm the remaining CTR). Also, obviously, there is now a one-time reward for locking CTR tokens if any are left over at the deadline. The market price of CTR may or may not be impacted by this change, but as always the best way to earn CTR is to farm the IFO.
Another effect of this change is that the platform could end up raising less aCRV than originally planned. However, this is not a problem as our recent analysis shows that, even at the current IFO raised amounts, we will be able to achieve our primary goal (bring aCRV liquidity cross-chain to several chains) while still leaving sufficient reserves for future strategic use. Our team’s recent discussions with several top-tier DeFi protocol teams have produced some tantalizing hints about what future strategic use might look like… but we digress.
The IFO deadline solution combines fairness with rewards for positive sum behaviour. Farmers who sold CTR throughout the IFO were generally able to turn a quick profit, and those who held and/or accumulated have the opportunity to be rewarded handsomely if they are willing to express their conviction by locking. With 4 weeks of lead time each participant has plenty of time to decide how they wish to play the IFO end. As ever, Aladdin designs mechanisms to incentivize long-term belief and good DeFi citizenship.
Achtung, baby! Nota bene!
CTR represents ownership of Concentrator and its purpose is to be locked for yield and governance power. Any other purpose amounts to speculation. The team does not control the secondary market price of CTR, but we do control the IFO farming price which always stays at 1 CTR = 1 aCRV, and farming the IFO remains the best way to get CTR.
