Tholgar is a new DeFi protocol aiming to empower synergy with Paladin Finance and democratize their product by simplifying user experience and enhancing yield efficiency. The protocol now introduces its primary feature : Warlord auto-compounder.
Warlord Is a product by Paladin.vote launched in march 2023. While the WAR index is a great way to gain exposure to governance tokens and earn yields on it, we thought that its attractivity could be increased by creating a non custodial auto-compounder that provides a higher yield than Warlord itself.
Defi composability being also a key concept to our heart, we implemented our product with a popular standard custom to best suit yield purposes : the Yearn’s ERC 4626.
The whole product is available on our frontend at https://tholgar.xyz. There, you can deposit your WAR or AURA/CVX tokens without being required to go to the warlord website.
When you deposit your tokens in Tholgar, you receive tWAR as a receipt of your shares in the vault. When the auto-compounding cycles occur, your balance of tWAR does not change. However, the amount of WAR you can withdraw increases through a rebase mechanism calculating the updated balance of WAR in the vault.
You can see the amount of tWAR you own as a percentage of all available WAR in the vault. For example, if you have 10 tWAR in your wallet and the total supply of tWAR is 1000, you own 1% of all the tokens in the vault and you can withdraw them at any time.
When you withdraw, you basically exchange your tWAR that will be burnt for the underlying tokens (in this case, WAR).
The auto-compounder efficiently collects and reinvests rewards into a vault each week. To maximize long-term yield, it strategically delays claiming cvxCRV and auraBAL rewards to boost WAR holdings and reduce gas fees. The process involves harvesting, swapping rewards to feeTokens, compounding, and converting feeTokens back into CVX or AURA to mint more WAR for staking. The server code is open-source in the operator directory, with plans for a decentralized approach in the future.
Tholgar is a new DeFi protocol aiming to empower synergy with Paladin Finance and democratize their product by simplifying user experience and enhancing yield efficiency.