<aside> đĄ This page gives you a bit more background to the protocol and where the yield comes from
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<aside> âïž Main menu
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If youâre here we assume youâve read the basics about Alluo, our mobile and web apps and are looking to dig deeper.
<aside> đ» Find out more about the webapp
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<aside> đ± Find out more about the mobile app
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That said as a reminder, Alluo enables its users to earn a great yield for the assets (stablecoins and the major crypto coins) they purchase and hold through the Alluo mobile app or stake in the farms through the Alluo web app.
The protocol is a cross-chain yield optimisation and liquidity direction protocol and our mobile app is a non-custodial wallet deployed on Polygon.
Note that Alluo is not a bank and funds invested on Alluo are not protected by a government-backed scheme such as FDIC, FSCS or other such funds.
Alluoâs deposits (from either our non-custodial Mobile app or anonymous crypto-friendly Dapp) are are held in a variety of stablecoins (e.g. DAI, MIM, USDC, USDT, FRAX etc.).
Every two weeks the $Alluo token lockers (those who bought, held and locked up their $Alluo tokens) vote on where to deploy/invest Alluoâs deposited funds from a selection of Curve and Convex liquidity pools. Once deposited in the pools, the funds earn yield and rewards which Alluo claims and returns a share to Alluo depositors.
<aside> đĄ Liquidity pools can get quite complex. Put simply, they are pools of tokens that sit in smart contracts and can be exchanged or withdrawn at rates set by the parameters of the smart contract. Adding liquidity to a liquidity pool gives you the opportunity to earn trading fees and possibly rewards.
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<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/01bb54c6-a972-48e9-a8b1-653a1029d35b/Curve-Logo-HighRez.png" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/01bb54c6-a972-48e9-a8b1-653a1029d35b/Curve-Logo-HighRez.png" width="40px" /> More information on Curve
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<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/4fb3450c-ca76-4d69-aa88-60bc15287942/convex-white.svg" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/4fb3450c-ca76-4d69-aa88-60bc15287942/convex-white.svg" width="40px" /> More information on Convex
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An individual customer can of course buy tokens, deposit them into the Curve pools, earn rewards, claim rewards deposit into Convex, claim rewards and convert back to their token/stablecoin of choice. However, this multi-step process is at best time consuming and is certainly not straightforward for average users. Moreover, it is often not cost effective for smaller deposits, especially if you want to spread your deposits over multiple pools.
