Hey wizards! ✨
We’re back for part 3 of our Light paper! This part will cover our tokenomics. Sit comfy and enjoy your read!
Missed part 1 or part 2?
Recap of all Elexir assets
Use Cauldron to produce $ELXR, buy $Cookbook to level up up your cauldron and its yield, use $Claimstone to claim your $ELXR.
- $ELXR — ERC20 (Main token)
- Cauldron — NFT ERC721
- $Cookbook — ERC20
- $ClaimStone — ERC20
What is the price of a cauldron? a cookbook? a claimstone ? — How many cookbooks do I need to upgrade a cauldron? — What is the return of a level 1 cauldron? Level 2?
Let’s answer all that in this article.
Token Stats
- Symbol: $ELXR
- Initial supply at launch: 1 000 000
Split of the initial supply
- Launch price goal : 6$
How to buy $ELXR?
There will be two main ways to buy $ELXR token:
- Bonding: Acquire $ELXR at a discount by bonding with either LP tokens or listed token.
- Market: Using the Decentralized Exchange (DEX): Trader Joe
$ELXR Supply
$ELXR supply does not have a hard cap. Its supply increases when:
- $ELXR is minted and distributed to the cauldrons owners.
- $ELXR is minted for the bonder. This happens whenever someone purchases a bond.
- $ELXR is minted for the DAO. This happens whenever someone purchases a bond. The DAO gets the same number of ELXR as the bonder.
✨ So you get it, the growth of the token supply is indexed to the growth of the treasury: The bigger the treasury, the bigger the supply.
✨ Contrary to other nodes projects, we don’t have to sell $ELXR to acquire liquidity resulting in a selling pressure on the token. We use the bonding mechanism to capture the necessary LP token for the DEX protecting the $EXLR price.
Cauldron Stats
- NFT
- Initial supply: 12000, we will release Cauldrons by batches overtime
- Launch price goal : 40 $ELXR
Elexir’s Cauldrons are ERC-721 standard, making them transferable and tradable on secondary markets outside the main Elexir sphere. Adding one more layer to the gameplay.
How to get Cauldrons?
There will be two main ways to acquire Cauldrons token:
- On the DaaP shop using $ELXR
- Secondary NFT Market
✨ Spoiler alert: we’ll be doing a cauldron discount for eELXR owners who trusted us with the private and public sale, i.e. right after launch.
Cauldron yield
The cauldron is the flagship product of Elexir. How much money a cauldron makes? Let’s break it down!
The returns depend on the level. The formula is simple:
Let’s unpack each elements!
BaseDailyReturn: 0.2 $ELXR/day, this is the return of a level 1 cauldron.
ElexirFactor: Global yield control parameter, this factor is the lever the DAO can pull to increase or decrease the yield of all Cauldrons. Mininum value is 1 as it can only go up starting from the launch.
Level: on-chain NFT attribute that defines it’s yield.
You get it, the best way to increase the yield is to level up your Cauldron. Therefore increasing your Daily return.
Let’s see how the level affect your yield:
With the BaseDailyReturn and a starting price of a Cauldron at 40$ ELXR this corresponds to an APR of 182.5% for level 1 cauldrons.
So 0.2 $ELXR/ day. Now let’s take a level 10, you have a 2.0 $ELXR/day 🤯
But what is the max level? There is no max level, your cooking skills are the only limit. But there is a cost to level up your Cauldrons…
$COOKBOOK Stats
- $COOKBOOK, ERC-20 token
- Initial supply: 30 000 (Release by batches)
- Launch price goal : 2 $ELXR
$COOKBOOK Supply
The supply of $COOKBOOK is infinite but controlled by the MagicFed. They will be released in batches to control the supply.
The supply limit of $COOKBOOK is a key feature which will create scarcity for high level cauldrons and incentivize wizards to either invest in leveling up cauldrons or minting new cauldrons.
How to get $COOKBOOK?
You can get Cookbooks in two ways:
- In the DaaP’ shop, you’ll be able to buy $COOKBOOK using $ELXR
- Staking, you will be able to stake your $ELXR to earn $COOKBOOK overtime
Cookbook leveling cost
The amount of Cookbooks required to level up a Cauldron follows this simple formula:
UpgradeCost is in Cookbooks. As an example, if you want to upgrade to level 3, you need 2 cookbooks. If you need to upgrade to level 8, you need 7 cookbooks and so on…
Now that you leveled up your Cauldrons, let’s see how to can take your profits out ✨
$CLAIMSTONE Stats
- $CLAIMSTONE, ERC-20 token
- Initial supply: 10 000 (Release by batches)
- Launch price goal : 10 $ELXR
$CLAIMSTONE Supply
The supply of $CLAIMSTONE is infinite but controlled by the MagicFed which will release $CLAIMSTONE in batches to control the supply.
The supply limit of $CLAIMSTONE is designed to make the asset scares, this will act as a claim fee and decentivize claiming.
How to get $CLAIMSTONE?
You can get Claimstones in two ways:
- In the DaaP’ shop, you’ll be able to buy $CLAIMSTONE against $ELXR
- Staking, you will be able to stake your $ELXR to earn $CLAIMSTONE
✨ As a reminder, these claimstones are optional, but be prepared to lose your cauldron if you do not use them to claim your $ELXR.
Each time a user performs an action it will cost him Mana. Mana is recharged overtime and acts as an anti-whale system that prevent big bags to buy all the ELXR assets.
The actions that will cost Mana are :
- Buying Claimstone
- Buying Cookbook
- Buying Cauldron
- Claiming Cauldron
- Leveling up Cauldron
Everytime a wizard buys a Cauldron, a $COOKBOOK or a $CLAIMSTONE, the earned $ELXR is distributed as follows:
- Reward pool : 80% (burned tokens, hence increasing excess reserve of the treasury)
- Team : 7%
- DAO : 13%
The split in the Team budget is: Marketing: 70%; Tech: 30%.
✨ Why can we invest this much on the reward pool? Usually node forks use their main token and swap them into stable coin then creating LP tokens for the liquidity, creating a selling preassure. We don’t have to do this as our bonding system will provide the necessary LP tokens without affecting the price.
Well, let’s discuss the perenity and robustness of the protocol.
To measure sustainability, we like to use a metric called the runway. The runway is the total number of days that the treasury can last without inflow while maintaining the current reward.
To ensure a long runway, the simplest solution is to provide yields that the protocol can afford. This leads us to propose yields certainly lower than the competition… Let’s stop being obsessed with big returns, big return means big risk. And big return without value creation means, decrease of the token value… We don’t want to attract investors with big returns, we want to seduce them with a solid project and a quality ecosystem.
You want numbers? To give an idea in case of a crisis, taking an estimate of 5000 level 1 cauldrons sold at launch, the protocol can last 300 days. If all cauldrons update to level 3, it can last 120 days. Beware, this is under the assumption that the protocol does not make a profit and does not create value! But our project will grow and increase its value with bonding, in-game assets, investments, future NFT perks assets …
But wait, the runway doesn’t mean much if your token is worthless after 3 months… This is something that is too often forgotten. What’s the point of holding 10,000 tokens that are worthless? To guarantee its value, we set up a backing system inspired by OHM which guarantees a backing price of 1$ and therefore secures your purchasing power. With Elexir you will have returns that may be lower than the competition, but above all you will have a token that keeps its value; and that is priceless.
✨ Given the current state of OHM, maybe some of you think it’s a failure? No, it is not! Do you know the launch price of OHM? 4$ … So even if the curve is scary, you can be sure that early OHM investors are very happy today, with a price 15 times higher than the pre-sale price + … gigantic returns…
There are different ways to earn money using Elexir. It’s up to you to see which strategy you want to use for yourself.
The Cauldron master
You mint the maximum amount of cauldrons possible, your game will be on collecting a large variety of NFTs.
The Alchemist
Level up a set of cauldron to the maximum level and expect high yield. The higher the level the more yield it has.
The Merchant
Your business is to feel the market and buy or sell NFT on the secondary leaving yourself the possibility to claim from time to time high yield cauldrons.
