How does Nitro Cartel contribute to the Arbitrum ecosystem through Arbitrove and Hyperplane Bridge?
If GMX is a shark parasitized by a remora, then Arbitrove has the potential to become another shark.Original Title: Alpha Report: Nitro Cartel
Author: PrimapesDAO
Compiled by: Deep Tide TechFlow
An overview of the upcoming $TROVE launch on Camelot.
Project: Nitro Cartel
Category: DAO
Blockchain: Arbitrum
Date: February 17, 2023
Overview
Nitro Cartel is a decentralized autonomous organization (DAO) aimed at guiding the adoption and TVL of the entire Arbitrum ecosystem. They are developing two products to achieve this goal—"Arbitrove" and "Hyperplane Bridge."
Arbitrove is an asset index for Arbitrum with yield-generating strategies. Its first launched index is called ALP.
Hyperplane Bridge is temporarily planned for the future development of the protocol—but the idea is to have an incentivized cross-chain bridge solution to attract more new users to use Arbitrum.
The Nitro Cartel DAO is managed by holders of the Passport NFT launched in December 2022.
Nitro Cartel Passport
The creation of the Nitro Cartel Passport is for the project's initial issuance and treasury fundraising. These funds will enable developers to pay for future product audits (such as Arbitrove).
Passport holders can influence the direction of the protocol through governance. To reward early supporters, Passport holders will receive token airdrops for future products (e.g., $TROVE).
Minting Details:
Total supply is 1000, with the team able to mint up to 200 NFTs.
Price: 0.4E
Date: December 4, 2023
Passports held by the team are permanently locked, and only the earnings generated while holding the Passport can be claimed.
Minting Results:
Only 509 NFTs were minted.
390 NFTs are listed on Opensea.
Current floor price (February 14, 11 PM): 3.65E
The DAO treasury wallet is a multi-signature wallet requiring 4 out of 7 signers to execute transactions. The signers are:
Nitro Cartel team members (4)
JonesDAO (Nach211)
Camelot DEX (Myrddin)
Vesta (Floflo1904)
Multi-signature address: 0x72f9b18f1091b1F8A0981Afe44aD0123Ae32524A
Arbitrove
Arbitrove is the first major product launched by Nitro Cartel, designed to provide users with an easy way to access the Arbitrum protocol.
In the long-term plan, Arbitrove will launch various indices—potentially yield-generating (assets), new protocols, NFTs, and even categories like GamaFi and liquid staking derivatives.
The first index launched by Arbitrove is called ALP, which will cover blue-chip assets on Arbitrum, such as $GMX, $GNS, and yield strategies around tokens like $GRAIL, $JONES, and $MAGIC.
The complete list is as follows:
Composition of ALP
The operation of ALP is based on minting/redeeming functionality. Currently, users can mint ALP with ETH, incurring a 0.5% fee for minting or redeeming. The protocol then acquires assets and executes yield-generating strategies. It will automatically rebalance as needed.
The DAO aims to boost the overall liquidity development of Arbitrum by utilizing some assets in liquidity pools on DEX. Nitro Cartel has also partnered with Vesta, and ALP may also become collateral for borrowing in the future.
$TROVE
$TROVE is the liquidity governance token for the Arbitrove product. $TROVE holders will influence the product direction through decentralized governance. The public sale is coming soon, and here are some key details:
Time: February 17, 2023, 2 PM (UTC) --- February 20, 2023, 2 PM (UTC)
Location: Camelot Launchpad
Required token: ETH
Starting price: 0.0025 USD
Issuance: 200,000,000
Initial FDV: 2.5 million USD
Hard cap: Maximum fundraising of 2.5 million USD (0.0125 USD per $TROVE, 12.5 million USD)
Vesting: No
Amount limit per wallet: No limit
All investors will receive the same price—the final price at the end of the sale.
Trove also has a custodial form, called esTROVE, which is non-transferable. However, it may have the ability to earn protocol revenue through staking. Nitro Cartel DAO will vote on this proposal in March. esTROVE can be redeemed (with a 1-year linear redemption starting from September 2023) for TROVE, but the redeemed tokens will not be eligible for yield.
$TROVE Token Economics
The total supply of TROVE is 1,000,000,000. However, some of these will initially appear in the form of esTROVE and cannot be traded immediately.
The liquidity supply will be:
200 million ------ LaunchPad sale
10 million ------ xGRAIL holder airdrop
90 million ------ Treasury (60 million will be used for liquidity owned by the protocol)
220 million ------ Liquidity incentives (will last for 8 years)
The remaining tokens (330 million will be distributed to Passport holders, 150 million will be allocated to the team) will be distributed as esTROVE. These tokens have no liquidity and have a 6-month cliff unlock period (although they can be staked to earn yield), after which the redemption period (1 year) can begin.
Other Details
30% of the raised ETH will be paired with the treasury TROVE to provide liquidity on Camelot. The remaining 70% of the raised funds will be used for the growth of Nitro Cartel, Arbitrove, and future products.
Hyperplane Bridge
There is little information about this product. They also noted that it may be delayed to support other products (based on community feedback).
I understand their goals for this product are:
To deploy a bridging solution to Arbitrum using LayerZero technology.
To ensure low costs and a very simple user experience.
To provide native token incentives for users bridging to Arbitrum.
To hope for synergies with other products (like Arbitrove) (e.g., a bridging method + automatic purchase of ALP may emerge).
To be community-owned and DAO-managed.
Currently, they are cautious because cross-chain bridges have high security risks, and they want to ensure they use the best technology.
Team
The team is anonymous, but there are some details about them in the documentation:
4 core developers.
3 team members dedicated to growth and business development.
Their experiences include diverse backgrounds. Some details are:
Machine learning engineers from FAANG companies;
Systems engineers from large financial institutions;
Former founders of leading NFT projects;
Blockchain analysts from prestigious universities;
Conclusion
Nitro Cartel is about to launch their first index ALP on Arbitrove. This index will provide users with a great way to gain diversified exposure to Arbitrum while generating some yield.
The governance token of Arbitrove, $TROVE, will launch on February 17 on Camelot.
Translator's Note:
While we have seen a lot of DeFi innovations on Arbitrum, such as Rage Trade and Camelot, after the wave of innovation passes, forks have become more common, and many protocols have started to follow suit by launching GLP-related delta-neutral strategy vaults.
The crowded track will make competition fiercer, and the ultimate winner may only be GMX itself.
If GMX is a shark parasitized by a remora, then Arbitrove has the potential to become another shark. I also look forward to seeing more protocols built based on ALP in the future.
