Aluna Farm V2: Stablecoin Liquidity Mining Pools, ALN Staking, Yield Boosters, Burn, and Value Accruing Treasury

Aluna will distribute an additional 150,000 ALN across 3 new pools starting 15th April 2021, 12PM UTC. This includes two liquidity mining pools for stablecoin pairs on Uniswap, and a single-asset token pool for staking ALN.

Aluna Farm V2 introduces a novel yield booster feature, enabling users to increase their farming yield by purchasing boosters with ALN, and adds burning and value accrual mechanisms to the Aluna ecosystem.

All three pools will run for 9 weeks and end on 17th June 2021.

⚠️ Disclaimers

There have been NO official third-party audits for the edited pool contracts used for these 3 new pools.

Staking is NOT be available until the Launch time of each pool stated below.

Do NOT send any tokens directly to the pool address, they will be lost forever. You MUST use the Stake function, or use the UI to stake them.

We urge all users who engage with staking contracts to self-audit and read through contracts before putting your tokens at stake. You will be using this BETA product at your own risk.

📖 Aluna Farm Guide

For liquidity mining, you first need to add Liquidity to one of the supported pools on Uniswap. You will need an equal dollar amount of ALN and ETH/USDT/USDC which you will add as liquidity on the DEX. You will receive a Liquidity Provider (LP) token in return.

To participate in any of the pools, stake your LP tokens or single-asset tokens on the Aluna Farm.

Once your stake is approved and your deposit confirmed, you will start earning ALN immediately as long as the is active, and you can unstake at any time.

ALN rewards are allocated every minute based on the proportion of your staked tokens against the total staked tokens in the same pool.

To ensure a fair playing field for smaller investors, there will be a maximum staking limit of ~$5,000 for the first 24 hours for all 3 pools.

🦄 ALN Liquidity Mining: Uniswap Stablecoin Pairs

120,000 ALN will be distributed to ALN/USDT and ALN/USDC liquidity providers on Uniswap over 9 weeks, starting at 12PM UTC on Thursday, April 15, 2021.

To participate, you first need to add Liquidity to the ALN/USDT pool or ALN/USDC pool on Uniswap, then stake your LP tokens into the corresponding pool on Aluna Farm.

For Uniswap ALN/ETH Pool, read our previous post.

Pool details:

  • Staking tokens:
    - Uniswap ALN/USDT LP token
    - Uniswap ALN/USDC LP token
  • Distribution amount in total: 120,000 ALN (evenly split across 2 pools, 60,000 ALN / pool)
  • Effective ALN mined per pool: ~0.661/minute, ~39.7/hour, ~952/day
  • Distribution period: 9 weeks
  • Launch: Thursday, Apr 15, 2021, 12:00h UTC
  • End: Thursday, Jun 17, 2021, 12:00h UTC
  • Maximum staking limit for first 24 hours:
    - USDT Pool: 0.00010974131273 LP tokens
    - USDC Pool: 0.003535533905933 LP tokens

🛸 ALN Staking Pool

30,000 ALN is allocated to a single-asset ALN staking pool, to be distributed over 9 weeks.

To participate, stake your ALN tokens directly on the Aluna Farm.

Pool details:

  • Staking token: ALN
  • Distribution amount: 30,000 ALN
  • Effective ALN mined: ~0.331/minute, ~19.8/hour, ~476/day
  • Distribution period: 9 weeks
  • Launch: Thursday, Apr 15, 2021, 12:00h UTC
  • End: Thursday, Jun 17, 2021, 12:00h UTC
  • Maximum staking limit for first 24 hours: 10,000 ALN

🚀 Yield Booster Mechanism

All the three new pools include a novel yield booster mechanism, enabling honest farmers to purchase a booster with ALN, which increases yield by 10% with each purchase. The yield booster purchase function will be available on all the new pools at launch.

This also introduces burning and value accrual mechanisms to the Aluna ecosystem.

Aluna adopted the booster mechanism from Boosted.Finance, whose BoostPool.sol contracts were based on codebases of notable and established projects, such as the battle-tested Synthetix StakingRewards contracts. The (old) base forked contract used by Aluna can be found here, and has been successfully audited by CertiK.

To enable paying for boosters in ALN, Aluna has edited the contract after the audit for values related to the booster token, rewards multiplier and booster price. The new ALN-booster-enabled contract can be found here.

👨‍🚀 How Do Yield Boosters Work?

Boosters increase your total value locked by 10% each time, significantly ‘boosting’ your yield relative to other players while contributing to the stability and sustainability of the Aluna DAO.

Example of Yield Booster Effects

With time and strategy, participants who deploy resources efficiently will outperform counter-parties who are less effective with capital allocation and boosters.

Here’s an overview of how the Booster mechanism works:

  • They increase your total value staked by 10%, increasing your APY and yield.
  • They increase your yield only for existing staked tokens, i.e. staked after purchasing boosters will not get the yield boost.
  • They are independent for each farming pool, i.e. a booster purchased for one pool can only be used for that particular pool.
  • They are active throughout the staking duration and not transferable to other pools.
  • Unstaking will discard existing boosters.
  • There is a cooldown of 1 hour for subsequent booster purchases to prevent gas wars and maintain equal opportunity.
  • Unlimited number of booster purchases.

The price of a booster scales proportionately to individual staked amounts (whales pay more, shrimps pay less). In addition, there will be a multiplier that increases booster costs based on the total amount of purchased boosters inside a pool. Here’s an overview of the Booster pricing mechanism:

  • 5% price increase for each previously purchased user-booster
  • After 10 boosters (`boostThreshold`) purchases, each booster will further increase in price (`boostScaleFactor`) by 20% subsequently
  • 1% increase in `globalBoostPrice` for every booster purchase in the vault
  • 2.5% decrease in `globalBoostPrice` for every 2 hour interval since the last global booster purchase

The price of one Booster is a variable that depends on your share of the staked amount in the pool. The `globalBoostPrice` starts at 2,000 ALN, and this is divided by all participants in the pool based on the proportion of their staked amounts compared to the total staked amount:

  • If you own 1% of the pool, your base booster price is 20 ALN (1% of 2,000 ALN).
  • If you own 10% of the pool, your base booster price is 200 ALN (10% of 2,000 ALN).

🔥 Burn, Value Accrual and Community-owned Treasury

Yield boosting adds the first burn mechanism and revenue stream to the Aluna ecosystem.

25% of ALN spent on booster purchases will be burnt, and 75% swapped into yCRV and added to the governable community-owned treasury to further support stability and sustainability of the Aluna DAO.

Currently 5% of all treasury deposits will be allocated to the ecosystem fund to further support long-term sustainability, while 95% will remain in the treasury. This % for the ecosystem fund can be changed by the community through governance proposals down to a low of 0% and up to a maximum of 15%. Anyone can call `withdrawEcoFund()` to send the allocated funds to the `ecoFund` address.

Only the governance contract (community) can call `withdraw()` through passing an on-chain vote.

More information about the Aluna DAO and Governance will be shared over the next few weeks. Stay tuned!

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