Nitro Chronicles: May Recap

May was a busy month.

Welcome back to the Nitro Chronicles Series. This update includes all of the latest news from the Nitro Cartel community.

Arbitrove: $500K+ TVL & Growing

In May, Arbitrove surpassed $500K in TVL as the community awaited the official launch. ALP, which is well on its way to becoming the ideal Arbitrum-native index, is rapidly accelerating in terms of deposits into the index. We’ve received some questions from the community in terms of overall allocations, so we’ll break them down below:

Common Questions

Why is ETH at a 25% allocation?

ETH is allocated in this way because many of the strategies require ETH to be paired with tokens in LP strategies (ex. JONES, MAGIC, RDNT). These LP positions constitute large portions of the overall index’s ability to generate real yield and must be allocated accordingly.

What rewards will I receive?

All the rewards generated from the aforementioned strategies will be converted to ETH and distributed as rewards to ALP stakers. However, illiquid assets like xGRAIL, which is a reward from the GRAIL-USDC LP, will not be sold for ETH. Instead, they will be staked to earn rewards on the Camelot platform. This is a great representation of one of Arbitrove/ALPs strongest capabilities — the ability to consolidate multiple streams of high-quality ETH yield, all in one place. When fees are enabled via TROVE governance, these yields create an equally large opportunity for TROVE stakers. Incredible.

Recent Content & Upcoming Contests

We have been tirelessly pumping out incredible content to ensure our community members have a better understanding of the assets we plan to add to the ALP. Last month, we included ARB, the ARB ecosystem token, JONES, the hat token, and GNS, the green apple token. We’ll be launching even more partner-related content shortly.

Look out for plenty of new content releases coming up in June. We’ve also got an interesting contest opportunity for content writers and thread creators coming up as well — you won’t want to miss it.

Liquidity Migration Proposal

Thanks to Cosmo, we had an extremely constructive discussion regarding the move to withdraw approximately 30% of the liquidity from the Camelot TROVE-ETH pair. The intention behind this move is to utilize the funds effectively or to allocate them as liquidity for potential partnerships with other protocols. We view this as a significant step towards embracing the DAO decisions and pushing us closer to complete community governance.

Development

Our esteemed developers have made significant improvements to Arbitrove over the last month. These changes are also reflected in our documentation.

• The Dark Oracle functionality within Arbitrove has undergone several enhancements resulting in improved resiliency and independence.
• The Oracle now has new features that limit potential drastic price changes, under-minting of ALP, and general minting anomalies.
• The rebalancing module has also become more efficient and secure.
• The Rebalancer contracts are designed to operate only when necessary and are controlled by the multi-sig, ensuring greater control and security.

Our technical team also successfully implemented the GMX strategy, which has operated flawlessly within the overall index. Rebalances have been occurring with a high degree of efficiency and have faced no major issues. We are also exploring additional oracle technologies that will enable integration with even more Arbitrum-native protocols. Details on additional infrastructure development will be shared as soon as they’re available. Stay tuned for the addition of more strategies.

Audit Results

We just received some incredible news related to our audit. This audit was one of the final steps required for us to fully launch ALP. We got a near perfect score from our auditors, a 9.8/10. The remaining 0.2 score is related to some minor documentation and style improvements that we will be making shortly.

1. The total Documentation Quality score is 8 out of 10.

2. The total Code Quality score is 10 out of 10.

3. Code coverage of the project is 100% (branch coverage).

4. As a result of the audit, the code contains no issues. The security score is 10 out of 10.

All found issues are displayed in the “Findings” section of the provided PDF. We’re extremely happy with this result as it takes us one step closer to our full ALP launch in early June.

What’s Next?

We’ve got some exciting competitions coming up for our community to participate in. Both will enhance the community’s understanding of current and future products. The official launch of ALP (which will likely coincide with our liquidity transfer) is slated for early June. We’re expecting additional audit feedback from our auditors before the full launch.

We can’t wait to share more details on the full ALP launch and upcoming competitions — stay tuned.

Join our Passport Member channel for bi-weekly alpha updates on all aspects of Nitro Cartel. Monthly reports will continue to be available publicly for everyone to access. Keep a close eye on the announcements channel in our Discord for the latest updates.