Short Introduction to the Citadel DAO

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)

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

Basic Operations

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

Yield Strategy Example

Tokenomics

BTC / ETH / USD

CTDL Emissions & Supply Curve

each epoch is 3 weeks

CTDL Emissions

CTDL 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

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

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.

BadgerDAO

https://rekt.news/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

• https://citadeldao.io/
• https://twitter.com/TheCitadel_DAO
• https://docs.citadeldao.io/
• https://thecitadeldao.medium.com/introducing-the-citadel-dao-551849104d26
• https://thecitadeldao.medium.com/tokenomics-deep-dive-a11e7f5e2083
• https://thecitadeldao.medium.com/an-insight-into-citadeldao-treasury-strategies-aa2456e3bba1
• https://thecitadeldao.medium.com/citadel-initial-sale-parameters-8bec5c957066
• https://forum.citadeldao.io/t/citadel-initial-sale-proposal-rff/
• https://twitter.com/HaowiWang/status/1516606391468773377