Since our change in leadership, we have been solely focused on enhancing our product and making it more versatile. Now that we have achieved the necessary flexibility, we are poised to move quickly and start shipping.
What the next months will bring?
Brokkr’s goal remains to simplify DeFi investing.
We will cover the whole investment spectrum — Coins + Yield — with Indexes, THORChain Vaults for native yield, and strategies that abstract the DeFi complexity.
• We will begin by launching indexes covering Avalanche & Arbitrum, offering: Regular Indexes, Yield farming indexes, and Yield-boosted indexes
• The new architecture of the strategies is super flexible, enabling many variations and possible iterations
• Indexes are gaining traction and possess great potential; the recent evidence is Alongside’s $11m seed round. Indexes account for ~15% share of the traditional equity market, and if the crypto market starts following in a similar direction, we will be in a prime position to capture part of the movement.
🎡 Regular indexes
• Theme specific and monthly rebalanced
• Easily scalable across EVM-based chains
• Offer exposure to coins and narratives without requiring extensive research — NFT index, AI, RealYield, TopX, DeFi, etc.
• Can be swiftly developed to capitalize on trending topics — eg. AI
• Offer partnership themes opportunities — eg. Launchpads
🟢 We just released the first index in Beta!
Avalanche DeFi index GMX. QI, VTX, PTP, JOE, BRO
🌽 Yield farming indexes (portfolios)
• Comprised of protocol or topic-specific pools with rebalancing toward top-performing LP pools
• Protocol specific — Camelot Yield Index — Camelot pools
• Topic specific — Ultimate Yield Index — A combination of Camelot, Curve, GMX, or Beefy pools
➕ Yield-boosted indexes
• Enhanced yield indexes utilizing protocols with locking mechanisms (like Convex, or Conic)
• Designed to optimize underlying protocol performance and incentivize users to lock tokens with Brokkr through token incentives and superior yields
• Index liquidity can be used for lending & borrowing
• A closed ecosystem could enable 1:1 or even undercollateralized lending
The current tokenomics design is dependent on a high TVL that was never achieved. With the new concept, we will bring an immediate use case to the token and better incentives to stakeholders.
The new concept
All stakers will have the option to vote on monthly app incentives and strategy structures. This will allocate additional BRO rewards to the app users, but which strategies receive rewards will be decided by voting. Besides incentivizing app usage, the rewards pool will also support LP incentives, and staking (its sole purpose until now).
Generated fees will be distributed among the Brokkr treasury, stakers, and active voters. $BRO will enable reduced platform fees and unlock exclusive features on the platform.
• As it is right now, staking $BRO will generate $bBRO
• $bBRO is a loyalty token and will grant a voting power
• More bBRO translates into more voting influence
• $BRO stakers can vote on incentivizing specific strategies or indexes with token emissions
• The Rewards pool will incentivize: Stakers, Liquidity providers, and App usage
• The custom unstaking period will be removed, leaving a single 30 days unstaking period
• Fees generated from the strategies & indexes will be distributed among Stakers, Active voters, and the Brokkr treasury
To minimize valueless dilution, we will further reduce staking rewards while we implement the new concept.
After the Terra crash, Avalanche was chosen for the Brokkr DAO as it seemed to be the safest chain while it also had the DeFi instruments needed to build Delta Neutral strategies. But now it’s time to expand.
• Start on Avalanche and then move to Arbitrum due to its larger market and fewer smart contract limitations
• We still believe in THORChain and its Savers and we will incorporate them when possible. They will complement indexes perfectly and will make the offering whole.
Currently, we can build only an interface on THORChain because smart contracts can’t manage TC positions. Due to that, we can’t create strategies or use DCA for the pools or vaults.
• In the meantime, we will focus on building partnerships that will increase the power of the indexes and strategies
Transitioning to Arbitrum, incentivizing the app usage, and altering the tokenomics may involve opening an Arbitrum $BRO pool and potentially relocating the entire DAO.
Now we will focus on fast shipping and iterating to find the right product that we can scale.