Auxo is a DAO focused on trust-minimized yield farming that generates real yield on assets without dilution.
The DAO employs a variety of strategies on different chains to generate high yields for the treasury.
100% of the yield generated is distributed back to the community as a yield, 70% of the monthly rewards go to the Active Rewards Vault, while the remaining 30% goes to the Passive Rewards Vault.
The AUXO token represents one's share of the treasury used to farm assets and is traded around the Net Asset Value of the treasury.
There are many ways in which one can generate yield in the crypto space: one can stake, lend, run a validator, delegate, provide liquidity, etc.
Each of these different ways to earn a yield on one’s assets comes with a series of different risks and rewards. For example, if one is staking 32 ETH, they must ensure that their validator behaves appropriately, or they risk their stake being slashed. If one lends out stablecoins on platforms such as Aave and Compound, they must take on protocol risk, if one provides liquidity on a platform like Uniswap, they must be wary of the risks of impermanent loss, and yield farming can be problematic thanks to the risk of dilution.
AUXO is designed in such a way that many of these risks are minimized and removed.
Auxo is a DAO that is focused on trust-minimized yield farming that generates real yield on assets without dilution and pays WETH rewards to stakers monthly.
This is achieved by leveraging the hive mind of the DAO to employ a variety of different strategies on different chains to generate the highest possible yields for the DAO treasury. The yields that the DAO generates each month are then distributed completely to the Rewards Vaults.
Once per month, yield is distributed to those who have staked AUXO in either the Passive Rewards Vault (PRV) or the Active Rewards Vault (ARV).
AUXO tokens represent one’s share of the treasury that is used to farm assets and are traded around the Net Asset Value (NAV) of the treasury. The NAV for AUXO will be calculated as total assets held by the protocol divided by the total AUXO supply.
| NAV = Assets / Total_Auxo_Supply
Given that there are many different ways to generate yield in crypto, the Auxo DAO Treasury Farming Operators are determined to ensure that yield is generated in a way that is risk averse following the Treasury Farming Risk Framework scoring system.
There are two different reward vaults that one can choose to participate in, and the two rewards vaults are very different in nature, but they share a single starting point: staking AUXO.
The Active Rewards Vault requires stakers to participate in the process of DAO governance by voting at least once during each epoch, those that do become eligible for that epoch’s rewards distribution. Those not voting don’t receive any rewards during that month from the Active Rewards Vault.
By contrast, the Passive Rewards Vault is designed for those who earn a passive income from their stake, and doesn’t require any active participation - one should just stake and claim their WETH rewards each month.
It’s important to mention that of the total monthly rewards, 70% goes to the Active Rewards Vault, while the remaining 30% to the Passive Rewards Vault.
AUXO DAO's governance is designed to ensure the resilience and decentralization of the system. ARV holders play a variety of roles, including notarization and transparency, authorization and access control, and issuing liquidity events. The community's voting promotes transparency in strategy performance, setup, operation, and composition. ARV holders control the Treasury's authorization layer, allowing only authorized transactions to be executed by Treasury operators. ARV holders can add and remove Treasury Operators at any time, reducing operational risks and expanding governance capabilities.