CitadelDAO & Tokemak: Bringing BTC into the Blackhole of Liquidity


CitadelDAO is aiming to be the largest community-owned holder of BTC, and are gazing upon the blackhole of liquidity as a partner to bring this Bitcoin to DeFi.

Commander end0xiii recently announced the whitelisting of Tokemak’s C.o.R.E. Participants and TOKE stakers/LDs, followed by a call to rally the Tokemechs for this new frontier in the Liquidity Wars:

"Pilots! Update regarding Citadel DAO! As previously mentioned, we’re excited to announce that the Tokemechs have been invited to become Knights of the Citadel! If you’re a TOKE Liquidity Director, or participated in C.o.R.E. 1 or 2, you qualify for the Knighting Round whitelist."

Soon after this announcement, the CitadelDAO Discord was flooded with Tokemechs.

The Tokemechs have entered the Citadel

Spadaboom laid it out loud and clear during the April 22nd CitadelDAO Town Hall: the DAO wants to be a long term reliable BTC liquidity provider to Tokemak and other DeFi 2.0 partners such as [REDACTED], Convex, Alchemix, Tribe, & Frax.

Collaboration seems to be a budding trend in DeFi. Builders and protocols are now looking at the growing ecosystem and considering how potential collaborations can usher in the next phase of development.

Instead of cycles of accumulation and subsequent profit-taking, we are beginning to see DAOs and protocols create more sustainable alternatives. Ideally this leads to a more collaborative and stable environment.

Tokemak is a Knight of the Citadel  

Knights of the Citadel are protocols with which CitadelDAO seeks to establish a mutually beneficial relationship. The nine Knights partnering with CitadelDAO in the quest for efficient BTC yield, liquidity, and governance are:

With these partnerships, Citadel plans to bring composability and yield-bearing strategies to a cryptocurrency that has been largely neglected by DeFi.

Citadel’s appeal to users will be through periodic rewards of its governance token CTDL, strategy-based yield rewards in BTC, and bribes for directing the BTC liquidity that Citadel holds.

Currently BadgerDAO, from which CitadelDAO is being incubated, holds over $500M in TVL and has ~24k users employing its vault strategies.

The larger door being opened here, though, is Bitcoin. The orange giant boasting a current market cap of over $700 billion sits mostly idle and unproductive compared to other assets in the DeFi space.

Badger and Citadel aim to change that, and one of the strategies they are considering is using Tokemak's Pair and Token Reactor options for BTC, BADGER, and CTDL.

The discussion is still in the early stages, but the diagram below lays out the general approach.

Citadel's pending proposal regarding the Tokemak strategy

Citadel Initial Sale Parameters

CitadelDAO has finalized the Initial Sale parameters of the xCTDL token. Pilots that have been whitelisted will be able to purchase an uncapped quantity of xCTDL in phase 1 for $21 per token.

There will be 2 additional token sale phases offering xCTDL to a wider audience at $25 and $28 in phases 2 and 3 respectively.

Pilots can confirm inclusion in the whitelist on the verification page.

Tokebase encourages all readers to do their own due diligence regarding cryptocurrency investments and does not specifically endorse the projects mentioned in this article.

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