FAQs

An extensive list of FAQs

Angel Vaults

What is an “Angel Vault”?

An Angel Vault is a Uniswap v3 liquidity management protocol and the most successful liquidity strategy in DeFi to date. It allows a protocol to allocate stable assets directly under the price of a project token, supporting the protocol and allowing LPs to enjoy the lucrative experience of concentrated liquidity.

How does it work?

AVLPs use Uniswap v3 concentrated liquidity to establish a wall of "buyers of last resort" directly under the price of a project token. This continually establishes new price floors, because of rebalancing, and protects project tokens against a market downturn, as long as the angel vault is large enough in comparison to market cap.

Why would I want one? Protects the price and earns money

When an asset has the majority of its liquidity paired with Ethereum, they become exposed to the upside as well as downside of $ETH market volatility. With an Angel Vault, protocols can utilize their own branded dollar, or another stablecoin, to build a buy-wall of liquidity to protect their token’s price. Thanks to UNI v3 tickers and concentrated liquidity. Since the deployment of ICHI’s angel vault, the price has been completely unaffected by market downturn, while still being able to enjoy market upside.

What does the IRR metric on the Angel Vault page represent?

IRR stands for Internal Rate of Return which is defined on Investopedia as the profitability of potential investments. In the ICHI Vault system, the IRR provides a representation of the performance of the vault from inception (meaning an account of its past performance). Due to the fact that it takes into account the past performance of the vault, it is not a perfect representation of future earnings but stands to illustrate what is likely/has been the case until the current date. Additionally, with ICHI's vote for IRR enhancements

How do vaults profit/create a positive Internal Rate of Return (IRR)?

This is dependent on many different factors. The IRR is a mixture of earned fees from Uniswap v3 (based on volume of trades in that pool), rebalances, price of the protected asset, and amount of liquidity deposited to the vault. The ICHI UI displays IRR for projects that hit the minimal threshold for Minimum Vault Strength as seen on the Vault Metrics page.

How many types of tokens are deposited into a vault?

The angel vault takes single-sided deposits (usually of a dollar pegged asset) which we call the deposit token. The vault is named after the deposit token and uses that token to provide price protection for the other token in the pool known as the paired token.

How is initial liquidity supplied to the pool?

The Uniswap v3 pool that is created for the angel vault to deposit to is made up of the deposit token and the paired token. Initial liquidity should be deposited at the creation of the pool and spread across the entire range.

How often do rebalances happen? Are they automated?

Rebalances happen on an as-needed basis. They are monitored by automated software but manually pinged. This will be a fully automated process in the coming months and more information about rebalance strategies will be described in these docs soon.

Who rebalances the vault?

At the moment ICHI governance has been rebalancing vaults for partner projects due to the complexity. In the future, this will be automated, and up to the Partner project to ping the contract when wanting a rebalance to occur.

What are the benefits of using a Branded Dollar in a vault vs. USDC?

Offsets liquidity rewards provided for angel vaults as users mint Increased demand to provide Angel Vault Liquidity translates to additional scarce crypto locked in treasury Converts TVL into POL through the usage of Treasury funds For every $1 of liquidity added to the vault, $1.20-1.50 of value is locked for the protocol oneTokens drive more protocol-owned liquidity and assets under management for a protocol. Both are increased due to Decentralized Monetary Authority technology that provides a project with its own massively over-collateralized stable asset. This collateral can be managed and put to work with DeFi strategies as the DMA managers best see fit.

What are the risks of using an Angel Vault?

Angel Vaults are highly risky as they allow for single-sided liquidity deposits, and use those to deposit to a liquidity pool. This means deposits are subject to all risks of providing liquidity on an Automated Market Maker (AMM) including but not limited to Impermanent Loss, loss of all funds due to a hack of the contract, negative IRRs, etc. Please do your own research before depositing.

HODL Vaults

What is a “HODL Vault”?

A HODL Vault is a Uniswap v3 liquidity management protocol focused on enabling investors/protocols to earn more on their single-sided deposit. HODL Vaults allow depositors to allocate any asset into a Uniswap pool and have that position managed, allowing LPs to enjoy the lucrative experience of concentrated liquidity.

Why would I want one?

For general investors/depositors, it provides a way to earn more of their deposited token at a considerably high rate of return (due to the nature of concentrated liquidity). For protocols, it enables the community to aggregate more of their deposited token.

What does the IRR metric on the HODL Vault page represent?

IRR stands for Internal Rate of Return which is defined on Investopedia as the profitability of potential investments. In the ICHI Vault system, the IRR provides a representation of the performance of the vault from inception (meaning an account of its past performance). Due to the fact that it takes into account the past performance of the vault, it is not a perfect representation of future earnings but stands to illustrate what is likely/has been the case until the current date. Additionally, with ICHI's vote for IRR enhancements, the ICHI Foundation will guarantee IRR minimums over the first 6 months of a vault's lifespan. How do vaults profit/create a positive Internal Rate of Return (IRR)? This is dependent on many different factors. The IRR is a mixture of earned fees from Uniswap v3 (based on the volume of trades in that pool), rebalances, the price of the protected asset, and the amount of liquidity deposited to the vault. The ICHI UI displays IRR for projects that hit the minimal threshold for Minimum Vault Strength as seen on the Vault Metrics page.

How many types of tokens are deposited into a vault?

The HODL vault takes single-sided deposits which we call the deposit token. The vault is named after the deposit token.

How is initial liquidity supplied to the pool?

The Uniswap v3 pool that is created for the angel vault to deposit to is made up of the deposit token and the paired token. Initial liquidity should be deposited at the creation of the pool and spread across the entire range.

How often do rebalances happen? Are they automated?

Rebalances happen on an as-needed basis. They are monitored by automated software but manually pinged. This will be a fully automated process in the coming months and more information about rebalance strategies will be described in these docs soon.

Who rebalances the vault?

At the moment ICHI governance has been rebalancing vaults for partner projects due to the complexity. In the future, this will be automated and up to the Partner project to ping the contract when wanting a rebalance to occur.

What are the risks of using a HODL Vault?

HODL Vaults are highly risky as they allow for single-sided liquidity deposits, and use those to deposit to a liquidity pool. This means deposits are subject to all risks of providing liquidity on an Automated Market Maker (AMM) including but not limited to Impermanent Loss, loss of all funds due to a hack of the contract, negative IRRs, etc. Please do your own research before depositing.

Branded Dollars

How is it possible to mint a new ICHI Branded Dollar for $1 of value?

Decentralized oracles (live price feeds provided by networks of computers) determine the price of two assets in US dollars: $USDC (a stabletoken issued by regulated financial institutions, backed by fully reserved assets, and redeemable on a 1:1 basis for US dollars) and the project tokens. You mint a new stable token by paying exactly 1 US dollar in two parts (part $USDC and part project tokens) as calculated by these oracles.

How is it possible to redeem a Branded Dollar for $1 of value?

You redeem a stable token for exactly 1 US dollar of $USDC, less a redemption fee. The price of $USDC in US dollars is provided by decentralized oracles.

Why can't you just use cryptocurrency (ie, Bitcoin) to do business activity?

You can't grow a business without the ability to predictably pay expenses, control risk, and/or set aside funds for taxes. That makes volatile, scarce tokens unusable for real business. At the same time, it hurts every time you sell a token for fiat currencies (money issued by governments rather than software) or stable tokens don't economically drive the value of that token's treasury. ICHI makes it possible to community hodl (hold your tokens rather than selling them) your favorite token while also doing real business.

How do branded dollars hold their peg?

ICHI takes specific measures to ensure that there is always enough fiat backed stable asset backing the branded dollar so that it can be redeemed for that asset. Today, that means USDC (which is the only fiat-backed asset in collateral for the 11 branded dollars we have). With that risk parameter in place, branded dollar users will always be able to redeem 1 branded dollar for 1 USDC. This ensures that the branded dollar is always worth $1 and provide an arbitrage opportunity for arbitragers in the space in case that begins to fluctuate.

What does 100% on-chain mean?

You can see the $USDC collateral and the tokens paid to mint on the Ethereum blockchain as well as the entire transaction history of minting, redeeming, and any treasury actions. If the tokens or $USDC are used by the token’s community to create DeFi (decentralized finance positions), you can see these transactions and positions in the corresponding smart contracts.

What is the Community Treasury?

You pay in project tokens to mint that project’s Branded Dollar. These tokens remain in a Community Treasury because you only get back $USDC when you redeem the token’s Branded Dollars. The Branded Dollar’s community decides what to do with this treasury by voting with the stabletoken itself. A common action may include selling part of the Community Treasury to buy more $USDC and deposit it back into $USDC collateral.

How does a community profit from a Branded Dollar?

Communities that create their own Branded Dollar are able to introduce a stable medium of exchange for their economy without having to dispose of their native project tokens. DMAs enable communities to: Create their own decentralized stable token Create a Community Treasury to incentivize adoption Earn yield on their own stable token Increase total value locked in their community

Where can I use these Branded Dollars to do business? Why would anyone accept them?

There are three major markets for stable tokens: decentralized applications (DeFi), cryptocurrency applications (centralized exchanges, wallets, etc), and consumer applications (online shopping, everyday goods and services). Users will mint the first $10B stable tokens for DeFi, the next $100B for cryptocurrency applications, and trillions for consumer applications. This will take time but the Community Treasuries are able to power the incentives and discounts necessary to make this happen.

What happens if the scarce crypto goes down in value?

ICHI requires a minimum treasury reserve ratio of 150% in order to ensure 100% of Branded Dollar redemption at $1. Decreases in scarce crypto value which put this ratio at risk should result in purchasing of additional collateral tokens or unwinding of yield bearing positions. What does an infinity symbol in the Reserve Ratio column mean? This can mean one of two things: Reserve Ratio is above 10,000% All outstanding Branded Dollars in circulation are backed by hard-pegged stable assets (i.e. $USDC)

How is the Reserve Ratio calculated?

Two simple steps:

Treasury Backed = Minted - (collateral + collateral position) - (Minted * Redemption Fee) Reserve Ratio = (Treasury + Treasury Positions) / Treasury Backed Upgraded ICHI

$ICHI vs. Legacy $ICHI

Do I need to swap my Legacy $ICHI for Upgraded $ICHI?

Swapping from Legacy ICHI to ICHI is possible directly on app.ichi.org, but Legacy ICHI will not disappear. Legacy ICHI use cases, such as liquidity provision, will be possible, but incentives will start to phase out as we look to ramp up the usage of ICHI.

What will happen to Legacy $ICHI?

Legacy $ICHI will continue to be present in the market and function as it does today. There is no end date or plan for it to be removed from the market.

What can I do with $ICHI?

New liquidity options for $ICHI and other use cases such as governance capabilities and staking of $ICHI, are coming soon. After talks with the Bancor team, the ICHI Foundation will look to have $ICHI whitelisted on Bancor v3 and be approved for Dual Liquidity Mining rewards (dependent on ICHI governance approving the allocation of $ICHI rewards to this program).

How will ICHI maintain the same price as Legacy ICHI?

Both Legacy ICHI and ICHI will be pegged to each other with 1-1 swap availability on app.ichi.org and Uniswap v3.

Will I receive ICHI or Legacy ICHI with the ALLY program?

The Ally program provides $ICHI (0x111111517e4929D3dcbdfa7CCe55d30d4B6BC4d6).

How does this affect xICHI?

This will not affect xICHI. Those holding xICHI can continue to do so and it will function normally.

Will there be a way to stake $ICHI?

Yes, the contract is being built and is planned to launch in the future.

oneICHI

How can I mint oneICHI?

Go to app.ichi.org and select the “Mint” tab on the UI. You can then select oneICHI and follow the guided steps in the UI.

What is oneICHI equal to?

oneICHI is always equal to $1 USD. It is minted using 100% USDC.

What can I do with oneICHI?

oneICHI is a Branded Dollar that can always be redeemed for USDC. oneICHI can also be supplied to the oneICHI/ICHI Angel Vault concentrated position to earn fees and potential ICHI rewards. More use cases will be announced in the future as they become available.

$ALLY Token

What is an Ally Token?

A fungible ERC-20 token. 10M fixed total supply of Ally Token will be minted and fully distributed at one time.

Who will get Ally tokens?

Two groups of users will receive Ally tokens: Suppliers to the Rari pool (supplied wETH, wBTC, USDC, oneUNI and oneBTC) Vault Providers (users who held oneBTC LPs and/or oneUNI LPs and supplied them into the Rari pool) Data from a snapshot taken on (Apr-11–2022 01:14:36 PM +UTC) was used to identify users eligible for Ally tokens. An amount that determines how many tokens each user will receive is calculated based on the total amount of tokens (listed above) supplied and borrowed by the user. This amount was reduced by any redeem or borrow transactions that occurred after the snapshot.

How many Ally tokens will be distributed to each wallet?

The proposed allocations for each wallet are displayed in this worksheet: (https://docs.google.com/spreadsheets/d/1wkcjR_3Ni5o2hmkz-tHFWIpoQ6s4GMkzV8miMwk4Ie0/edit#gid=1413362248) Specific numbers may change as edge cases or additional wallets are added to the list. Submit a ticket on Discord if you think your wallet should qualify but is not on the list.

How was the allocation for each wallet determined?

Allocation was based on each user’s lending position in Rari Pool 136 at a specific snapshot (after the initial big sell off, but before the liquidations became possible): (Apr-11–2022 01:14:36 PM +UTC) as shown here: https://etherscan.io/block/14564596 *The numbers in the snapshot were then adjusted based on redeem or borrow transactions that occurred after the snapshot

What were the actual numbers used to derive these Ally tokens?

User’s amount of $Ally = (Supplied — Borrowed) / 7.225 Where: Supplied = USD amount of wETH, wBTC, oneUNI, oneBTC, USDC, oneUNI Vault LP and oneBTC Vault LP supplied by the user Borrowed = USD amount of wETH, wBTC, oneUNI, oneBTC and USDC borrowed by the user Notes: To calculate USD price of wETH, wBTC and vault LPs, on-chain oracles were used at the time of the snapshot The “borrowed” and “supplied” amounts were adjusted for each user based on transactions they executed in the pool after the snapshot.

How long does it take for the Ally token redemption value to reach its maximum?

3 years from the start of the program.

How much $ICHI will Ally holders receive when they redeem their tokens?

When fully matured, each Ally token is eligible to be redeemed for a proportion of $ICHI. For example, if a user holds 1,000 $Ally tokens (680,325 $ICHI are allocated to the program) users will be eligible for (680,325K / 10M) * 1000 = 68 $ICHI. However, if the user redeems before the Ally token fully matures, he/she will get less $ICHI in return. If other users redeem their tokens earlier, then the amount of $ICHI returned will be greater.

How much $ICHI will Ally token holders receive if they redeem their tokens before 3 years are up?

They will receive a proportionally lesser number of $ICHI. For example, if they redeem on day 1 they will receive 1/1095 (days in 3 years) of $ICHI they would have gotten if they waited a full 3 years. Redeeming on day 20 would produce 20/1095 of $ICHI and so forth. However, if other users redeem their tokens earlier, then the amount of $ICHI returned will be greater, as each remaining token will represent a bigger share of the unclaimed $ICHIs.

What happens if someone redeems his $Ally after a year. Will the remainder of ally holders hold a larger portion of the pool now?

Yes.

How will Ally token be distributed?

Eligible wallets will be able to claim $ALLY. The proposed list of eligible wallets can be found here: (https://docs.google.com/spreadsheets/d/1wkcjR_3Ni5o2hmkz-tHFWIpoQ6s4GMkzV8miMwk4Ie0/edit#gid=1413362248)* *Specific numbers may change until launch of the Ally program as edge cases or additional wallets are added to the list. Submit a ticket on Discord if you think your wallet should qualify but is not on the list.

How will it help to collateralize oneDODO, oneBTC and oneUNI treasuries?

These treasuries are among suppliers eligible to receive the Ally Token. This will allow holders of oneDODO, oneBTC, and oneUNI to swap for the Ally token. Over time, each oneToken treasury will accumulate enough oneTokens through Ally swaps that a combination of these oneTokens, remaining Ally tokens and additional treasury assets will be enough to restore the peg.

Will this proposal dilute the ICHI supply?

No, the ICHI supply will continue to be set at 10M for this year as explained in this Medium article: https://medium.com/ichifarm/ichis-roadmap-to-1b-in-community-governed-value-93b85a4cbfda and voted into governance with this snapshot vote: https://snapshot.org/#/ichi.eth/proposal/0x13bca87e14e1e7250f61840e8c937395bf2b06becfab3b686b742fa06aea4ef4

How much $ICHI will be allocated to this program?

Total amount of ICHI tokens available for this program will be 680,325 determined by the weighted average of the community vote: https://snapshot.org/#/ichi.eth/proposal/0x778986aeb8e05675fd5a9b3442014c42facf2fb2cdde36ee14fac9e5a6c16b76

Where do I get my Ally tokens if my account is eligible for the Ally program?

Navigate to ally.ichi.org. Once you connect your wallet, you will be able to see how many tokens you are able to claim. After you consent to the terms and conditions, you will be able to swap oneTokens for $Ally tokens and/or redeem $ICHI

What transactions do I have to make to receive my Ally token?

On Claim Sign Terms and Conditions Claim On Swap Sign Terms and Conditions Approve Swap

What can I do with Ally tokens?

Currently, users can hold their Ally Tokens or redeem them for ICHI. Stay tuned for future use cases and ways to earn.

How much time do I have to claim my Ally tokens?

You can claim them at any time throughout the vesting period which starts on <Friday, May 13, 2022> and ends <Tuesday, May 13, 2025>.

Why is the swap ratio between oneBTC/oneUNI/oneDODO and Ally tokens set to ~7.225?

oneToken treasuries are using this ratio to ensure that there is a way for them to return their respective oneTokens back to 1:1 peg over time.

If others redeem $ALLY before maturity will I be eligible to earn more ICHI?

Yes, as other users redeem, ICHI tokens allocated to their wallets that stay in the contract will be reallocated to Ally tokens not yet redeemed.

Where will I be able to see the amount of $ICHI my $ALLY are worth?

You will be able to view this directly on ally.ichi.org in the Redeem section.