Nitro Cartel is an Arbitrum-focused DAO, with the goal of enhancing chain-level governance structures and resolving the issue of incentive misalignment among chains, project founders, users, and investors. Nitro Cartel is supported by a treasury that generates yield and grows the ecosystem. 

Nitro Cartel offers two products:

• A yield-bearing index called Arbitrove which offers community members access to the resources of the Arbitrum ecosystem (including but not limited to blue-chip DeFi protocols, emerging protocols, NFT, and Arbitrum yield-farming assets).
• A community bridge, Hyperplane Bridge, provides liquidity and TVL to Arbitrum. 

Objectives

These are the objectives; 

• Boost TVL growth across the Arbitrum ecosystem, and effectively and openly distribute member funds among Arbitrum-native yield-generating techniques.
• Use the Cartel’s innovative governance mechanisms to quickly create public goods that are composable with the industry’s top DeFi protocols.
• Get rewards and proportionally distribute any token that partners may airdrop, including a future $ARBI token airdrop as a result of contributions that enhance the Arbitrum ecosystem. 

Governance Mechanism 

Passports act as the first chain-level governance instrument for the Nitro Cartel, with a focus on sustainability and, most crucially, integrated mechanisms to create value for the Arbitrum ecosystem. The Nitro Cartel membership that passports reflect entitles owners to vote and participate in the DAO’s governance. Instead of yields in the future, passport incentives are given out as airdrops.

Passports ensure access to a capital allocation machine that routes across a range of liquidity preferences and the ultimate means to control the coordination of crucial infrastructure on Arbitrum. 

Proposals and Voting 

Snapshot (off-chain governance) will be used as the voting platform until an established on-chain DAO governance platform exists on Arbitrum. By using a simple majority process, significant decisions will be voted on beforehand (subject to change to quadratic voting or else).

Multisig Gated Functions

Members of the team and well-known blockchain figures will be signatories to the 4/7 multi-sig treasury wallet. They can only carry out the decisions made by the DAO; they cannot make decisions on their own.

The multig address is: 0x0e6b44332c2347f44ff3ed5367da978e0f39958f. 

Nitro Cartel’s two products, and let’s examine them below. 

Arbitrove 

The scope of Arbitrove has grown to incorporate additional sources of yield in addition to its original goal of being a one-stop destination for index exposure on the Arbitrum network.  Through the yield-bearing index-Arbitrove, members of the community have access to the resources of the Arbitrum ecosystem. Through Arbitrove, community members get access to blue-chip DeFi protocols, emerging protocols, NFT, and Arbitrum yield-farming assets. 

One of the developers’ goals is to make Arbitrove the index token standard of Arbitrum, to broaden its use case, make it a collateral of lending protocols, or the underlying asset for Arbitrum leveraged trading, and more. Token holders will benefit from higher yields as more use cases are added, compared to holding the index tokens independently.

The first index of the Arbitrove protocol is ALP, and it consists of a selection of high-quality tokens like GMX, RDNT, GNS, JONES, MAGIC, and GRAIL that are used in yield-generating techniques to create profit for users. In due time, more indices will be added. 

Hyperplane Bridge

Hyperplane Bridge is an Arbitrum rollup-focused bridge that leverages the technology pioneered by LayerZero.

Hyperplane Bridge’s purpose is to:

bringing in users, resources, and liquidity,

becoming the most affordable and user-friendly bridging solution,

be administered by and owned by the community.

The developers have resorted to giving the development of Arbitrove priority before turning their attention to Hyperplane. Hence, Hyperplane can still be said to be in its embryo form. 

Tokenomics

The native governance token for the Arbitrove Protocol is $TROVE. it depicts Nitro Cartel’s treasury fractionalized ownership and POL that generates yields. 

70% of $TROVE’s total supply will initially be in the form of Escrowed $TROVE ($esTROVE), a non-transferable token that can be staked for protocol revenue sharing.

The $TROVE staking proposal is yet to receive the DAO’s approval; it is anticipated to be submitted in March 2023. However, beginning in September 2023, $esTROVE may vest in a 1-year linear manner to become $TROVE. It will not be possible to stake or share fees with vested $esTROVE.

$TROVE and $esTROVE have a total supply of 1 billion tokens altogether.

For $TROVE, 22% is allocated for incentivizing users of our indices, stakers, and liquidity providers (this will be released gradually over the next 8 years),1% will be airdropped to xGRAIL holders, 9% is reserved for the Arbitrove treasury,  6%  for protocol-owned liquidity, and 20% reserved for the fair launch on CamelotDEX. 

For $esTROVE, 33% will be airdropped to Nitro Cartel Passport holders and 15% will be distributed to current and future contributors and team members. 

Conclusion 

The primary objective of Nitro is to use Arbitrove to tackle the liquidity problem that projects and the community are experiencing in the blockchain space.  Nitro is also devoted to giving the community access to an Arbitrum index so that they can invest in the ecosystem as a whole.

Nitro Cartel envisions Arbitrove being used as collateral for borrowing or as an underlying asset in leveraged trading.

Hyperplane Bridge, the project’s maiden infrastructure, is also included in the strategy, to improve UX and increase the convenience of bridging.

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