A look into $TROVE and the upcoming launch on Camelot - By Vorpaxis

Project: Nitro Cartel

Category: DAO

Blockchain: Arbitrum

Upcoming Product Launch: Arbitrove ($TROVE) - February 17, 2023

Overview

Nitro Cartel is a decentralized autonomous organization (DAO) that aims to bootstrap adoption and TVL across the Arbitrum ecosystem. They have two products in development to accomplish this - Arbitrove and Hyperplane Bridge. Arbitrove is an index of assets from across Arbitrum that features yield generating strategies. The first index to launch is called ALP. Hyperplane is tentatively planned for future development - but the idea is to create an incentivized bridging solution to attract new users to Arbitrum. The DAO is governed by the Passport NFT, which launched December 2022.

Nitro Cartel Passport

The Nitro Cartel Passport was created as a way to bootstrap initial runway and funding for the Treasury. The proceeds enabled the developers to pay for audits of future products (like Arbitrove). Owning a Passport enables holders to influence protocol direction via governance. To reward early supporters, holders of Passports receive airdrops of future products (such as $TROVE).

Mint details:

• 1000 total supply, with 1/5 minted to team (200 max)

• Price: 0.4E

• Date: December 4, 2023

• Team passports permanently locked, only the yield generated from holding the passport will be claimable by the team

Mint results:

• Only 509 Passports were minted

• 390 are available for trading (On OpenSea)

• Current floor price (Feb 14/23): 3.65E

The treasury wallet is a multi-sig that requires 4/7 signers to execute a transaction. The signers are:

• Nitro Cartel Team members (4)

• JonesDAO (Nach211)

• Camelot DEX (Myrddin)

• Vesta (Floflo1904)

Multi-sig Address: 0x72f9b18f1091b1F8A0981Afe44aD0123Ae32524A

Arbitrove

Arbitrove is the first major product released by Nitro Cartel. It aims to provide users with a convenient way to get diverse exposure to Arbitrum protocols. The long term plan is to have various indexes - some may be yield generating, emerging protocols, NFTs or even subcategories like GameFi, liquid staking derivatives, etc. The first index released is called ALP and will include blue chip Arbitrum assets such as GMX, GNS and have yield bearing strategies revolved around GRAIL, JONES, MAGIC and others. The full list can be seen below.

Composition of ALP

ALP works based off of a mint/redeem function. Currently, users can mint ALP with ETH and there is a 0.5% fee for minting or redeeming. The protocol then acquires the assets and performs the yield generating strategies. It will automatically rebalance as needed.

The DAO hopes to assist with overall Arbitrum liquidity by using some of the assets in liquidity pools on DEXes. Nitro Cartel also partnered with Vesta, so there is a possibility that ALP could be as collateral for borrowing in the future.

$TROVE

Trove is the liquid governance token for the Arbitrove product. Its holders influence product direction via decentralized governance. The public sale is approaching soon, here are some key details:

• Date: February 17, 2023 2PM UTC - February 20, 2023 2PM UTC

• Location: Camelot Launchpad

• Currency needed: ETH

• Starting Price: $0.0025 per TROVE

• Amount available: 200,000,000 TROVE

• Initial Fully diluted valuation: $2.5M

• Hard Cap: Max raise of $2.5M ($0.0125 per TROVE - $12.5M FDV)

• Vesting: No

• Amount Restriction per Wallet: No restriction

• Investors will all receive the same price - the final price at the end of the sale.

Trove also has an escrowed form, esTROVE, which is not transferrable. However, it may have the ability to earn protocol revenue via staking. The Nitro Cartel DAO is set to vote on the proposal in March. esTROVE can be vested (linearly over 1 year, beginning September 2023) back to TROVE, however vested tokens would not be eligible to receive yields. It also appears as if staked esTROVE could possibly earn emissions in esTROVE.

Source: Nitro Cartel webpage

$TROVE Tokenomics

The total supply of TROVE is 1,000,000,000. However, some of that will initially be in the form of esTROVE, and not immediately tradable. The liquid supply will be:

• 200M from the Launchpad sale

• 10M to xGRAIL holders

• 90M to the treasury (60M will be used for protocol owned liquidity)

• 220M for liquidity incentives. It should be noted that the liquidity emissions will be over the course of 8 years.

The remaining tokens (330M to Passport holders, 150M to Team) will be distributed as esTROVE. These tokens are not liquid and have a 6 month cliff (though they can be staked and earn yield), after which the vesting period (1 year) may begin.

Breakdown of liquid supply at launch

Other Details

30% of the ETH raised will be paired with the treasuries TROVE for protocol owned liquidity on Camelot. The remaining (70%) of the raise will be used for the growth of Nitro Cartel, Arbitrove and future products.

Hyperplane Bridge

There is not too much information regarding this feature. They also note that it may be pushed back in favor of other products (based on community feedback). My understanding their goal for this product is:

• utilize Layer Zero technology to deploy a bridge type solution into Arbitrum

• Ensure it is low cost with a very easy user experience

• Incentivize it by providing users who bridge to Arbitrum with native tokens

• Want there to be synergy between other products (like Arbitrove) - could potentially see a way to bridge + automatically buy ALP for example

• Have it be community owned and governed by the DAO

• Currently they are cautious as bridges have high security risks and they want to ensure they’re using the best possible technology

Team

The team is anonymous, however there is some details about them in the documents.

• 4 core developers

• 3 additional team members working on growth and business development

Their experience includes a diverse background. Some details were:

• machine learning engineer from a FAANG company

• systems engineer from large financial institution

• former founder of a leading NFT project

• blockchain analyst at a notable university

Conclusion

Nitro Cartel is about to launch their first index on Arbitrove, called ALP. The index will offer users a great way to obtain diversified exposure to Arbitrum while generating some yield. The governance token of Arbitrove, $TROVE, is set to launch on Camelot February 17. Interested investors should definitely check them out more on Discord!