Nitro Cartel is an Arbitrum-focused DAO aiming to improve chain-level governance structures and solve the problem of incentive misalignment between chains, creators, users, and investors. Nitro cartel is supported by a treasury that generates income and allows the ecosystem to grow.
Nitro Cartel offers two products:
- A high-yield index called Arbitrove that gives community members access to the resources of the Arbitrum ecosystem (including but not limited to blue-chip DeFi protocols, new protocols, NFT, and Arbitrum yield farming assets).
- A community bridge, Hyperplane Bridge, provides liquidity and TVL to Arbitrum.
These are the goals;
- Drive TVL growth across the Arbitrum ecosystem and effectively and openly allocate member funds to Arbitrum-native revenue-generating techniques.
- Leverage the cartel’s innovative governance mechanisms to rapidly create public goods that stack with the industry’s best DeFi protocols.
- Receive rewards and proportionally distribute any tokens that partners can airdrop, including a future $ARBI token airdrop as a result of contributions improving the Arbitrum ecosystem.
passports act as the first chain-level governance tool for the Nitro Cartel, with a focus on sustainability and most importantly, built-in mechanisms to add value to the Arbitrum ecosystem. Nitro Cartel membership, which the passports reflect, entitles owners to participate and vote in the governance of the DAO. Instead of returns, pass incentives will be issued as airdrops in the future.
Passports ensure access to a capital allocation engine routed through a set of liquidity preferences and are the ultimate means of controlling the coordination of crucial infrastructure on Arbitrum.
Proposals and voting
snapshot (off-chain governance) will be used as a voting platform until an established on-chain DAO governance platform exists on Arbitrum. Important decisions will be pre-voted (subject to change to square voting or otherwise) using simple majority voting.
Multisig gated functions
Team members and well-known blockchain figures will be signers of the 4/7 multi-sig treasury wallet. They can only execute the decisions of the DAO; You cannot make your own decisions.
The multig address is: 0x0e6b44332c2347f44ff3ed5367da978e0f39958f.
Nitro Cartel’s two products, and let’s examine them below.
Arbitrove has grown in scope to include additional revenue streams in addition to its original goal of being a one-stop destination for index exposures on the Arbitrum Network. Members of the community have access to the resources of the Arbitrum ecosystem through the high-yield index Arbitrove. Through Arbitrove, community members get access to Arbitrum’s best-in-class DeFi protocols, emerging protocols, NFT, and yield farming assets.
One of the developers’ goals is to make Arbitrove Arbitrum’s index token standard, expand its use case, make it a collateral for credit protocols, or the underlying asset for Arbitrum’s leveraged trading, and more. Token holders benefit from higher returns when more use cases are added compared to holding the index tokens independently.
The first index of the Arbitrove protocol is ALP and it consists of a selection of high-quality tokens like GMX, RDNT, GNS, JONES, MAGIC and GRAIL, which are used in yield-generating techniques to generate profits for the users. More indices will be added in due course.
Hyperplane Bridge is an Arbitrum Rollup focused bridge utilizing technology developed by LayerZero.
The purpose of the Hyperplane Bridge is:
bring in users, resources and liquidity,
to become the most cost-effective and user-friendly bridging solution,
managed and owned by the community.
The developers have resorted to prioritizing the development of Arbitrove before turning to Hyperplane. Therefore, it can be said that Hyperplane is still in its embryonic form.
The native governance token for the Arbitrove protocol is $TROVE. it shows fractional ownership of Nitro Cartel and POL generating returns.
70% of the total supply of $TROVE will initially be in the form of Escrowed $TROVE ($esTROVE), a non-transferrable token that can be used for protocol revenue sharing.
$TROVE’s staking proposal is yet to be approved by the DAO; it is expected to be submitted in March 2023. However, starting September 2023, $esTROVE can be linearly transferred for 1 year to become $TROVE. It is not possible to stake or split fees with vested $esTROVE.
$TROVE and $esTROVE have a combined stash of 1 billion tokens.
For $TROVE, 22% will be allocated to incentivize users of our indices, stakers and liquidity providers (this will be released gradually over the next 8 years), 1% will be dropped to xGRAIL holders, 9% will be reserved for Arbitrove treasury, 6% reserved for the protocol’s own liquidity and 20% for the start of the trade fair on CamelotDEX.
For $esTROVE, 33% will be airdropped to Nitro Cartel Passport holders and 15% will be distributed to current and future contributors and team members.
Nitro’s main goal is to use Arbitrove to address the liquidity problem that projects and the community face in the blockchain space. Nitro is also committed to providing the community with access to an Arbitrum Index so they can invest in the ecosystem as a whole.
Nitro Cartel envisages using Arbitrove as collateral for borrowing or as an underlying asset in leveraged trading.
Hyperplane Bridge, the project’s first infrastructure, is also included in the strategy to improve the UX and increase the convenience of bridging.
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