🏦Magic Bank
Where the treasury grows
The MagicBank is the treasury of Elexir. A treasury is like a big vault where we’ll store multiple assets. This treasury is constantly fighting to increase its volume for two causes:
act as an insurance for the price of $ELXR; assembling multiple assets in order to grow intrinsic value of each token
ensures that the reward pool for cauldrons yield can be supplied in a sustainable manner
Basically, the bigger the treasury the better. The more diversified, the less it is subject to volatility. But how is the treasury supposed to grow?
📈 How we aim to sustain rewards and grow treasury
Treasury will grow through different way:
Bonding: We bring liquidity into the treasury with the bonding mechanism offered by OlympusDAO. By buying ELXR directly on the Dapp against USDC.e, you will benefit from a discount compared to the main market (on a DEX like TraderJoe). By doing this you not only gain a significant price advantage, but you also help invest in the future of your cauldrons by strengthening the treasury; it’s a win-win.
In-game assets: Throughout different actions in Elexir like buying a Cookbook or Claim Stone, the protocol redistributes $ELXRs to the MagicBank. Making it a constant revenue stream for the MagicBank & create utility for the $ELXR token thus a richer gameplay.
Investments: Part of the treasury assets will be reinvested in order to generate profits. Our biggest challenge will be in assembling the most capital efficient portfolio. We will put in place an investment framework and DAO votes to define the direction of our investments with eligible holders. Imagine being part of a protocol that let’s you play to earn a bigger share of benefits generated. I wouldn’t sell my $ELXR!
Future NFT perks assets: In the near future we plan to create NFT drop events that will let wizards mint special NFTs with in-game perk AND/OR artistic value. A portion of the benefits will be directed to the MagicBank. Think of it as an other element of the ecosystem around Elexir that will rally the community and make it financially more stable.
Fine! Sustainability is a big issue, but not the only one. What are the other problems most treasury face? Opaque, complex metrics nobody understands, unclear investment strategy, uncorrelated health of treasury and rewards provided to investors. The MagicBank wants to flip that with a transparent approach.
🔍 Transparent treasury
The first thing will be to give super-easy access to MagicBank’s content and metrics through the dApp. We believe this is a simple but high impacting feature most protocol fail to implement. It’s not just about having a link to complex dashboard. It’s about helping investors understand where their money is directed and build trust.
💪 Treasury health & metrics
As part of debunking the treasury, one of the key element is having a common language. To do so, we’ll focus on 2 metrics:
Backing per $ELXR: the theoretical price the treasury would be able to guarantee based on current treasury supply. Please refer to OlympusDAO for more details.
Runway: the number of days that the treasury can last without inflow while maintaining the current reward
In addition to providing easy access to the treasury’s content & metrics, we’ll find the most clear way to visually help investor grab those concepts and understand the state of the treasury.
💰 To keep in mind
Some simple mental models to help you:
The bigger the treasury, the longer the runway
The bigger the treasury, the higher the backing per $ELXR
Bonding gets you a discount on $ELXR and enhances the treasury
The more $ELXR you own, the more you are exposed to multiple protocols we’ll invest in with high upside
In conclusion, we believe that our cauldrons mechanisms, the controlled supply and our treasury strategy will address the main problems protocols in this space have faced so far. Enabling us to validate phase 1 of our plan — a controlled and sustainable ignition.
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