Hey wizards! ✨ We’re back for part 2 of our Light paper! This part will cover our mechanisms. Sit comfy and enjoy your read!
Missed part 1? This way
Note: The current mechanisms explained in this paper are subject to iterations we might apply until release based on community feedback & advisors review.
⚗️ “The lab“ — Our Mechanics
Welcome to your Lab! The rule is simple: become the most prolific cooking wizard!
In order to do so, please let me introduce you the 3 main actors in Elexir: Wizards, the MagicFed & the MagicBank!
Every participant in Elexir’s world is a wizard! And with great power comes great responsibilities (I think my spider pet told me that once 🕸️).
As a wizard, you’ll have several tools at your disposal.
🍯 Cauldrons — Yield bearing NFTs…with a twist
Cauldrons are inspired by D-aaS nodes mechanism as they are your yield producing assets. You’ll be able to buy a cauldron for a given amount of $ELXR, each time we release cauldrons (see MagicFed section).
From there, your cauldrons will start producing our beloved $ELXR tokens at a given APR!
But that’s not it, our cauldrons have some special properties.
They are tradable: each cauldron is an NFT which generates yield in $ELXR meaning that you’ll be able to gift it to fellow wizards or trade in on third-party markets.
They are scarce: cauldrons’ supply will be controlled in order to sustain the rewards. So you better rush to get those cauldrons when they drop (or get yourself an early spot to have one 😉).
They evolve: a cauldron starts at level 1 with a base reward. You’ll then be able to level it up to increase the reward (APR) of your cauldron.
But they are fragile: If you claim your produced $ELXR out of the cauldron, it will explode and will not produce $ELXR anymore! Unless…you use a Claim Stone (waaaait for it, we’ll get to it in a couple of paragraphs).
✨ Yes, we want to limit the claims to defend $ELXR’s price! This is one of the main problems we’ve observed and that simply doesn’t make any sense in protocol’s tokenomics in that space. The treasury will stop distributing $ELXR once the user claimed his cauldron in order to sustain rewards for other wizards…and it adds some magic to the gameplay!
Let the strategy begin! Focus all your effort on one cauldron? Create multiple cauldrons? Can’t wait to see your creativity in-game!
💎 $ELXR
$ELXR is the main token of Elexir. You’ll have 3 ways to get it. Either by producing it with your cauldrons or buying it on a DEX (Traderjoe) at market price or buy it at a discount on Elexir against given tokens (spoiler alert, we like MIM — Magic ✨Internet ✨Money ✨).
✨ This discount mechanism inspired by Olympus’ bonding will help us build the treasury and capture given assets by incentivising wizards with discounts. This will also help solve a big issue in D-aaS tokenomics where the native token needs to be swapped for other assets thus creating massive selling pressure.
You’ll use your $ELXR to buy Cauldrons to product more $ELXR or buy in-game perks assets.
But that’s not it! You’ll also be able to stake your $ELXR. Staking your $ELXR will let you access to game assets airdrops events that will be held every weeks. Farmable NFTs ❤️🔥
🎮 Cookbooks & Claim Stones
Cookbooks and Claim Stones are the first in-game perks assets we’ll release at launch to spice up the game. You’ll be able to buy them with $ELXR and they’ll provide you special perks.
Cookbooks will be required to level up your cauldron thus increasing its base daily reward. For each level will be associated a number of cookbooks you’ll have to sacrifice in the cauldron to make it bigger and produce more $ELXR!
Claim Stones will be in need when you’ll want to claim your $ELXR from a cauldron without making it explode! This one will cost your a fair share of $ELXR though! Or…you’ll be able to stake your $ELXR in a single-sided staking pool to earn Claim Stones over time!
✨ Cookbooks and Claim stones are mechanisms that will limit behaviours that penalizes the protocol and help increase treasury by capturing $ELXRs.
Staking your $ELXR will limit selling pressure and bring in-game utility to the players. Win-win
🔋 Mana — Cooldowns
Lastly, wizards have mana! Mana is like your energy bar that you’ll use when performing certain actions like buying a new cauldron. The mana is like a cooldown mechanism that you can find in others games.
✨ Mana will act as a limitation factor for extreme behaviours like creating too much cauldrons in a short time period.
Exciting don’t you think?! Now, let’s get to our second actor: the MagicFed!
The MagicFed is the DAO ruling Elexir’s economy. Its main goal is to constantly make sure that the treasury is stable and the user rewards consistent.
In order to do that, the Magic Fed will
i) control the supply of Cauldrons, Cookbooks and Claim Stones
ii) constantly tweak elements of the economy
By controlling every parameter of the economy, the protocol will be able to keep the treasury stable and users reward consistent.
See it like a lever the DAO will be able to action in regards of the treasury health and the price of $ELXR.
The Cauldrons will be released in batches (just like classical NFT drops) when the KPIs of the treasury enables it helping controlling the growth of Elexir and the runway of the rewards. Cauldrons are designed to be scarce!
✨ So you better be ready when the MagicFed drop new Cauldrons!
Cookbooks and Claim stones will be available at any time but their price will depend on the supply and the choices of the MagicFed. Take advantage of the discounts when they come!
The MagicBank is the treasury of Elexir. A treasury is like a big vault where we’ll store multiple assets. This treasury is constantly fighting to increase its volume for two causes:
- act as an insurance for the price of $ELXR ; assembling multiple assets in order to grow intrinsic value of each token
- ensures that the reward pool for cauldrons yield can be supplied in a sustainable manner
Basically, the bigger the treasury the better. The more diversified, the less it is subject to volatility. But how is the treasury supposed to grow?
📈 How we aim to sustain rewards and grow treasury
Treasury will grow through different way:
- Bonding: We bring liquidity into the treasury with the bonding mechanism offered by OlympusDAO. By buying ELXR directly on the Dapp against MIM, you will benefit from a discount compared to the main market (on a DEX like TraderJoe). By doing this you not only gain a significant price advantage, but you also help invest in the future of your cauldrons by strengthening the treasury; it’s a win-win.
- In-game assets: Throughout different actions in Elexir like buying a Cookbook or Claim Stone, the protocol redistributes $ELXRs to the MagicBank. Making it a constant revenue stream for the MagicBank & create utility for the $ELXR token thus a richer gameplay.
- Investments: Part of the treasury assets will be reinvested in order to generate profits. Our biggest challenge will be in assembling the most capital efficient portfolio. We will put in place an investment framework and DAO votes to define the direction of our investments with eligible holders. Imagine being part of a protocol that let’s you play to earn a bigger share of benefits generated. I wouldn’t sell my $ELXR!
- Future NFT perks assets: In the near future we plan to create NFT drop events that will let wizards mint special NFTs with in-game perk AND/OR artistic value. A portion of the benefits will be directed to the MagicBank. Think of it as an other element of the ecosystem around Elexir that will rally the community and make it financially more stable.
Fine! Sustainability is a big issue, but not the only one. What are the other problems most treasury face? Opaque, complex metrics nobody understands, unclear investment strategy, uncorrelated health of treasury and rewards provided to investors. The MagicBank wants to flip that with a transparent approach.
🔍 Transparent treasury
The first thing will be to give super-easy access to MagicBank’s content and metrics through the dApp. We believe this is a simple but high impacting feature most protocol fail to implement. It’s not just about having a link to complex dashboard. It’s about helping investors understand where their money is directed and build trust.
💪 Treasury health & metrics
As part of debunking the treasury, one of the key element is having a common language. To do so, we’ll focus on 2 metrics:
- Backing per $ELXR: the theoretical price the treasury would be able to guarantee based on current treasury supply. Please refer to OlympusDAO for more details.
- Runway: the number of days that the treasury can last without inflow while maintaining the current reward
In addition to providing easy access to the treasury’s content & metrics, we’ll find the most clear way to visually help investor grab those concepts and understand the state of the treasury.
💰 To keep in mind
Some simple mental models to help you:
- The bigger the treasury, the longer the runway
- The bigger the treasury, the higher the backing per $ELXR
- Bonding gets you a discount on $ELXR and enhances the treasury
- The more $ELXR you own, the more you are exposed to multiple protocols we’ll invest in with high upside
In conclusion, we believe that our cauldrons mechanisms, the controlled supply and our treasury strategy will address the main problems protocols in this space have faced so far. Enabling us to validate phase 1 of our plan — a controlled and sustainable ignition.
But as you might imagine this is only phase 1…
✨ “Universe” — Recap of Elexir’s Universe
🔮 “Cristal bowl” — Tokenomics & Roadmap
Would be too good to be true if we covered it now!
Next part of the light paper will be about tokenomics & how we envision the milestones of Elexir post-launch. As always, stay tuned 👀
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(Discord launch game tip) Pssst…still there? get behind the boss to grab stronger weapons
