Private Automated Vault
Only xALPACA or xAUSD3EPS holders will be able to invest in the high-leverage (>4x) vaults. The max amount a user can invest in all high-leverage pools will correspond to the xALPACA / xAUSD3EPS balance they have.
We employ a linear & dynamic allocation quota where $1.0 worth of ALPACA locked gets $1 allocation as described below:
Linear: the more xALPACA you hold, the higher allocation you get
2 xALPACA = $1 total allocation across all high-leverage vaults.
- Example: Alice has 10,000 xALPACA so she is entitled to invest up to $5,000 USD across all high-leverage vaults.
- For clarity, this means that Alice, for example, can invest $2,000 in on high-leverage vault, $500 in another vault, and $2,500 in another vault, etc. But overall, when all her investments across all the high-leverage vaults are summed up, they cannot exceed $5,000.
- The allocation is counted against the current value of the investment and not the cost-basis. So as the investment appreciates in value, it takes up additional allocation.
Dynamic: the ratio will be adjusted monthly based on ALPACA price.
- Example: current ratio is 2xALPACA = $1 allocation. If ALPACA price increases by 100%, the new ratio will become 1xALPACA = $1 allocation, maintaining a constant $ ratio allocation.
Users will need to stake Ellipsis’ AUSD3EPS LP token for access to high-leverage AVs.
Staked duration: user can choose theor lock duration between 1 - 52 weeks. Similar to our Governance vault, the longer the duration, the higher allocation they will receive.
Allocation: $1.0 worth of AUSD3EPS locked for $1 allocation
- The allocation refers to equity value. So $1 allocation means you can supply $1 worth of assets to have $8 TVL in the vault (for the 8x vault).
- We track the amount invested in each vault’s smart contract (and not # of share token in the wallet) So users cannot game the system by transferring the token out of their wallets to gain additional allocation.
- xALPACA and AUSD3EPS balances are determined in real-time, on-chain, at the time of the investment.
- If your xALPACA or AUSD3EPS balance falls below the allocation allowed AFTER the investment, your capital will still be allowed in the vault. However, to make any additional deposits, you must increase your xALPACA or AUSD3EPS balance.
- The Dynamic Ratio is adjusted at the beginning of each month. To prevent manipulation, we use a TWAP of ALPACA for the 1 week prior to the ratio adjustment.