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Short Introduction to the Citadel DAO

April 28, 2022•646 words

Tips: This post is organized in a slideshow style.

How to be the largest Bitcoin holder?

How to be the largest Bitcoin holder, together?

The largest so far except Satoshi

  • Luna Foundation Guard: LFG
  • MicroStrategy

The largest so far except Satoshi

  • ~~Luna Foundation Guard: LFG~~
  • ~~MicroStrategy~~
  • Citadel DAO ✅

What's Citadel DAO？

Citadel is a treasury DAO aiming to be the largest community owned Bitcoin position in the world.

The treasury and protocol will be governed by the CTDL token, with a predominant Bitcoin treasury actively earning yield and shared with long term CTDL holders.

What's Treasury DAO？

DAO's Treasury -> Treasury DAO

  • BitDAO
  • AladdinDAO?
  • OlympusDAO (largest so far?)
  • ...

What's Governance Token？

  • for governance (UNI/ENS)
  • for monetary incentives (CRV/CVX/BAL)

https://snapshot.org/favicon.png

How it works in a nutshell?

Treasury Assets

  • Bitcoin (main target)
  • Other yield influence assets (e.g. CVX and Badger) for boosting yield

Mechanism

  1. Swap Bitcoin or yield influence assets for xCTDL (interest bearing Citadel) at a discount price
  2. Lock xCTDL for 21 weeks to receive a boost weight in CTDL emissions and other earnings sharing

Three Steps

three steps

Basic Operations

swap page

Explain Like I’m 5!

Bond 🏛️ (4,4) --> Lock 🔒 ve(3,3) --> Breathe! 👃🤑

Explain Like I’m 5!

Bond 🏛️ (4,4) --> Lock 🔒 ve(3,3) --> Breathe! 👃🤑

TLDR: It looks like the OlympusDAO with treasury assets focusing on BTC and putting assets into badger or other yield protocols.

Token in Different Forms

  • CTDL
  • xCTDL
  • vlCTDL

CTDL --(stake)--> xCTDL --(lock)--> vlCTDL

What Matters Most to a Treasury DAO?

  • How to make treasury grow fast?
  • How to maintain sustainable yield?

How to Make Treasury Grow Fast?

  • A successful launch
  • An attractive yield

How to Maintain Sustainable Yield?

  • Accelerated treasury growth
  • Good tokenomics
  • Good yield strategies

Target APR

target APR

Yield Strategy Example

yield strategy example

Tokenomics

BTC / ETH / USD

CTDL Emissions & Supply Curve

each epoch is 3 weeks

CTDL Emissions

emissions

CTDL Supply

supply

Elastic Emissions

CTDL emissions are distributed to

  • locked CTDL, staked CTDL
  • Treasury Funding

based on the percent of supply staked and the current Market Cap to Treasury ratio.

Emissions Split Example

Emissions Split

Rewards for vlCTDL and xCTDL

  • vlCTDL holders: CTDL APR, strategy yielding BTC, and bribes

  • xCTDL holders: CTDL APR

Initial Allocations

Treasury Strategies

Citadel Strategy #1: Convex + Badger

https://thecitadeldao.medium.com/an-insight-into-citadeldao-treasury-strategies-aa2456e3bba1

yield strategy 1

Treasury Yield Policy

  • Funding Revenue
    • 10% to holders of vlCTDL
    • 10% to the DAO
    • 80% to the Treasury
  • Treasury Yield
    • 50% of yield to holders of vlCTDL
    • 50% of the yield will be used for auto-compounding treasury positions

https://thecitadeldao.medium.com/an-insight-into-citadeldao-treasury-strategies-aa2456e3bba1

Citadel Initial Sale Parameters

https://thecitadeldao.medium.com/citadel-initial-sale-parameters-8bec5c957066

Partners

  • Alchemix
  • Convex Finance
  • Frax
  • Jones DAO
  • Redacted
  • Ren Protocol
  • Tokemak
  • Tribe DAO

Citadel x Badger

Citadel is a sub-dao of Badger.

badger in citadel

BadgerDAO

https://rekt.news/badger-rekt/

badger rekt

Code

https://github.com/Citadel-DAO/citadel-contracts

BrickedStrategy.sol
CitadelMinter.sol
CitadelToken.sol
Funding.sol
GlobalAccessControl.sol
Importer.sol
KnightingRound.sol
KnightingRoundGuestlist.sol
StakedCitadel.sol
StakedCitadelVester.sol
SupplySchedule.sol
interfaces/
lib/
mocks/
oracles/
test/

Discussion

  • Pros and cons
  • APE IN or NOT
  • Potential Risks
  • Valuation of CTDL token
  • TVL in initial sale (prediction)

Reference Links

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