LSD (Liquid Staking Derivatives) is an important DeFi component for the development of ETH after the Shanghai Mainnet event. 0xAcid is garnering attention as an important protocol that optimizes profits for these LSD assets. Let’s learn about the project and the ACID token in the article below.
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What is 0xAcid?
0xAcid is a platform that maximizes profits from LSD assets (such as stETH, rETH, frxETH, vv.) and provides much higher interest rates than regular LSD assets (usually only about 4-5% APR). The protocol holds assets related to LSD (equivalent to trusting that ETH will increase in value in the long term) and continuously earns actual income from staking Ethereum. When ETH reaches $10K, the Treasury will liquidate ETH and ACID holders will receive huge profits in USD.
Yielding Strategies of 0xAcid
Basically, the protocol concentrates a large amount of LSD assets in the Treasury through fundraising and bonding (reselling at a cheap ACID price). Currently, the Treasury value of the platform is $10 million.
The capital and assets in the Treasury will be used to yield profits on many other LSD platforms such as Aura Finance, Lido Finance, Pendle. 100% of the profit will be distributed to ACID holders when they stake on the platform. In addition, staking and locking ACID will also receive esACID rewards – which can be converted back into ACID when locking ACID (will be explained further below).
In addition to profits from running Ethereum nodes, protocol income includes:
- Lend returns (borrowing ETH by staking ACID but paying interest to the protocol)
- Defi returns (increasing ETH profits up to 10% by using Treasury’s LSD assets),
- LP returns (according to the PCL mechanism, the Treasury will hold a large portion of LP and continuously earn ACID transaction fees),
- Profits from ETH price (ACID holders have 100% protocol management rights and Treasury ownership, and holding ACID is equivalent to betting on ETH price increases),
- Profits from ACID tokens (staking and locking ACID will receive high esACID output, which can be converted into ACID. We believe that the profits from ACID output will be much higher than the profits from ETH in the initial stage of the project, and the actual profits will be much higher than those of ETH nodes or LSD assets).
Development Team
The 0xAcid protocol is developed by the Toxin Lab team (anonymous). The team’s previous project, MeteversePRO (renamed CongruentFi), had a circulating market capitalization of over $150 million and a treasury of over $40 million, which was returned to holders before the market crashed last year.
The project’s website and Twitter account have been closed, but the team’s successful history can be found on Snapshot.
Tokenomics (Updated on 5/4/2023)
The 0xAcid protocol includes 2 tokens: $ACID and esACID.
$ACID is the main token and LSD.
- Ticker: ACID
- Contract: https://arbiscan.io/token/0x29C1EA5ED7af53094b1a79eF60d20641987c867e
- Price: $930
- Circulating Supply: 1,419.39
- Max Supply: No Max supply
- Cir Market Cap: ~$1.3M
- Initial supply: 7,370 $ACID
- Public sale: 5,000 $ACID
- Team: 750 $ACID (locked for one year after protocol deployment)
- Liquidity: 120 $ACID
- DAO Treasury: 1,000 $ACID, staking starts after protocol deployment but is not locked.
- Airdrop+Marketing: 500 $ACID. Of which, 400 $ACID will be distributed for free to users who contribute more than 1 ETH during the token sale. (only applicable to the whitelist round)
Staking and locking ACID to earn wstETH + esACID. esACID (escrowed ACID) is rewarded for staking and locking your $ACID. esACID cannot be sold or transferred, but can be converted to liquid $ACID within 30 days.
The daily emission of esACID is 500 esACID.
APR Staking $ACID is currently at 73.33%. Stake $ACID here.
The amount of ACID staked will be converted into esACID. If you lock your ACID, you will receive additional esACID rewards with an APR ranging from 233.43% to 2,557%.
To allocate your esACID rewards, you must hold twice the amount of $ACID, and you can allocate up to 50% of your $ACID. For example, if you have 2 $ACID and 2 esACID, you can convert up to 1 esACID. And to convert 1 esACID into 1 ACID, you need to lock 2 ACID for 30 days.
Roadmap
0xAcid’s goals for 2023
- Provide 0xAcid users with superior profits by unlocking higher capital efficiency through innovative products. This will ensure that our protocol outperforms underutilized DeFi protocols.
- Develop high-quality LSD products, expand the user base, and create synergy with existing products to increase protocol revenue.
- Exploit opportunities with entirely new user groups outside of ETH Staking, leading to a doubling of user and revenue numbers.
Conclusion
0xAcid is a highly profitable platform for LSD assets and provides a suitable mechanism for investors to quickly increase their assets. However, inflation for the token is also a topic to consider before making investment decisions.
