# Overview Capella Finance aims to revolutionize the economy by making DeFi attainable to all. Blockchain technology, pioneered with Bitcoin, has proved to be the most honest, efficient, and secure global financial system in existence. Ethereum next, introduced decentralized computing, which laid the foundations for global decentralized finance and governance for the first time in history. Decentralized Finance (DeFi) is the next evolutionary step of our economy. It is only a matter of time until smart contracts will take over the existing financial infrastructure. Taking advantage of both cutting-edge innovations, capella.finance is a Decentralized Autonomous Organization (DAO) meant to build a technology that will unify all Decentralized Finance (DeFi) protocols under one simple mega-protocol. The Capella platform is built with the main focus of identifying, analyzing, and interacting with the best DeFi yield optimizing protocols investment options (known as vaults) on any blockchain in order to provide its users the tool they need to navigate the DeFi space as investors.\ \ *DEFI is disrupting the financial markets, but navigating the DeFi space is far from simple. Thousands of smart contracts are being deployed on dozens of different blockchains every day. More and more financial solutions protocols and services are emerging, representing the cutting edge of the economy, but only a few have true access to them.* **Our mission is to build the Google search engine for the DeFi and become the world’s gateway into the future of the economy.** # What is Capella Finance Capella Finance is a decentralized autonomous organization with the mission to simplify DeFi while bringing the incredible protocols being invented each day, to the front. We are committed to impacting the DeFi space as Google search did to the internet, and provide tools every investor must have to find the best yields on any asset at any given time, maintain those yields, and control the associated risks. The core pieces of the project - the initial protocol smart contracts, the application, and the CAPE tokenomics were all developed by the Capella Team and open source. Eventually, the team will hand over the control over the protocol and its treasury to the community. We believe DAOs are a novel corporate governing model that enables thousands of people to be involved and take part in creating the businesses of tomorrow, and we aim to become a fully decentralized organization. However, every DAO must start as a centralized organization, while slowly evolving into a decentralized one. This is where `you` enter the picture. The Capella team will continue to work on the project and expand the protocol, incentivizing as many DeFi enthusiastic to help Capella grow as fast as possible towards becoming the DeFi doorway of the world. # The Technology As for 2021, around 1.3% of the entire population uses Bitcoin, and only 0.06% uses DeFi protocols. This low number derived from 3 major pains the DeFi is currently suffering from: 1. ***Security*** - Super high risk for newcomers, people with no knowledge are afraid of DeFi due to the lack of tools to understand and manage the associated risks. 2. **Poor user experience (UX)** - Decentralized applications (Dapps) UX is far from good, the reason is that applications these days are meant to interact with centralized services. The time has come to invent the next Dapp client that is built solely for interacting with decentralized services and backends with minimum friction. 3. **Intimidating entry point** - The initial knowledge required is too high, in order to access DeFi protocols one must possess knowledge such as how to use a blockchain wallet software to interact with smart contracts or how to fund it. DeFi adoption rate will increase as those problems will be solved. Capella Finance have the solution! # Introduction Capella Finance provides a platform for easy-to-use Decentralized Finance (DeFi) products. Capella's DeFi products deliver ease-of-use in achieving your crypto-finance objectives. Capella Finance token (CAPE) is the core economic engine that facilitates the building and expansion of Capella’s capabilities and its community. The Capella project rests on three pillars: **Capella Products:** At launch, Capella offers a variety of interest-yielding "Liquidity Pools" that enable users to passively increase their crypto holdings by simply selecting the desired aggressiveness of their strategy and the digital asset held. The Capella "Liquidity Pools" represent the first product on the Capella platform. More will be developed and presented over time. **Capella Token:** CAPE incentivizes participation, facilitates governance, and catalyzes user contribution. Users earn CAPE through pool participation and, later, participating in Capella's continuous improvement. **Capella Community:** Capella is building a user community that sustains and grows the product portfolio, facilitates progressive decentralization, and enables users to build new products while earning a share of that product's fees. [Medium](https://medium.com/@capellafinance) is best for news and insights. [Twitter](https://twitter.com/CapellaFinance) and [Telegram](https://t.me/capellaChannel) serve as our primary notification channels. [Discord](https://discord.gg/FCeRcZYh) is where most interactions around governance, community, and development (by the team and community members) will take place. # Capella Features *Features reflecting the cryptocurrency category's accepted standard and that enable proper interoperability between our platform and others.* * **Non-Custodial:** Assets are deposited to and deployed automatically via smart contracts. Users always maintain 100% ownership of their funds and can retrieve them at any time. * **Trustless:** Assets are algorithmically deployed through the specifications laid out by Capella pool strategy smart contracts. * **Permissionless:** No signup, whitelisting, account verification, or otherwise is required to participate in the Capella ecosystem. * **Censorship Resistant:** Users can always interact with the smart contracts directly, which fundamentally cannot be taken down or tampered with. * **Open Source:** Any developer is welcome to build with Capella Finance. In fact, it's highly encouraged and heavily incentivized. * **Fraud Resistant:** The qualities listed above position Capella's ecosystem to minimize the risk of fraudulent activity typically associated with bordered, custodial, trusted, permissioned, closed source, and censored platforms. * **Simple, Easy-to-use:** Capella's user interface was designed to be as seamless as possible. One-click deposit and withdrawals plus mechanisms for portfolio tracking and miscellaneous Capella Finance metrics. ### DeFi Primitives *Features representing the mechanics of the DeFi products offered as part of Capella.* * **Liquidity Pools:** Liquidity Pools collect a particular asset (ETH, WBTC, USDC, others) via user deposits and deploy the capital to other DeFi platforms as outlined by the Hybrid pool's active strategies. Yield accrued by these strategies are used to buy back more of the deposit asset, which is delivered to pool participants. * **Staking Pool:** Token holders can deposit CAPE to the *Governance Staking Pool.* Revenue generated across all Capella Finance products is used to payback Liquidity Pool Tokens to CAPE Stakers. These tokens are delivered to the staking pool, where depositors earn interest proportionate to the size of their CAPE deposit. ### All Tokens *Features reflecting all tokens in the Capella Finance ecosystem, including the CAPE governance token and the various tokenized pool shares.* * **ERC20 Standard**: Industry standard for tokens on Ethereum, this enables tokens in the ecosystem to interact with the existing global DeFi ecosystem (Ex: tradeable on Uniswap). * **EIP-712:** All tokens support EIP-712 for sharing data via message signing. This is an important component of gas-less approvals. * **EIP-2612 (Gas-less Approvals):** All tokens leverage EIP-2612, which enables gas-less approvals, with the help of EIP-712. Users can send tokens to any contracts after signing an approval message, rather than having to broadcast a transaction. * **Multi-Transfer**: Inspired by Metronome, all tokens feature a mass pay functionality that enables batched payments in a single transaction. ### CAPE Token *Features of the CAPE token that make it the best token to govern the Capella Finance ecosystem:* * **Voting Rights:** CAPE tokens correspond to the voting weight in the Capella ecosystem, which includes deployment of reserves and approval of new strategies. * **Delegation:** Forked from Aragon, holders can delegate their CAPE voting weight to other accounts. * **Holistic View:** Capella Finance is a single-token ecosystem, with every product (new and future) interfacing with CAPE. CAPE grants voting rights that span the entire Capella umbrella and revenue generated by all products are used to pay back CAPE stakers. ### Pool Strategies *Features that guide Capella Finance Liquidity Pools to be profitable, secure, and sustainable.* * **Risk Scoring:** Every Liquidity Pool has a conservative/aggressive score that reflects the overall risk of the strategies employed by the pool including the security of third-party protocols interacted with, number of contract interactions, and collateralization ratios on loans (if applicable). * **Modular:** Liquidity Pool strategies can be modified to integrate additional or alternative actions as well as swapped altogether for better strategies. No action is required on the user's end and funds transition to updated strategies automatically. * **Upgradeable:** As new and better strategies are proposed within the confines of a pool's defined risk framework, those strategies can be employed without moving funds. * **Multi-Pool:** Pool assets can be deployed across *3* strategies, with any chose percentage allocated to a strategy \ (e.g. Allocating 40% to Stable Pool , 40 % - Coin Pool and 20% - Dex Pool) * **Upgrades:** Upgrades utilize the multi-pool feature to execute a rolling transition from an old strategy to a new one. (Ex: Start with 1%/99% new/old, then 5%/95%, etc. up the staircase until 100%/0%.) * **Developer Strategies:** A pool can support an unlimited number of strategies. Therefore, developers may spread funds across *n* pools as a way of testing their strategy. ### Web3 UI *Features pertaining to the Capella Finance frontend to enable a more seamless experience for users.* * **Multi-lingual Support:** Like our pool strategies, website content is modular, and users can interact with Capella in their native language. As more translations are compiled, they can similarly be added alongside available translations. # Liquidity Pools ## What is a Liquidity Pool? Liquidity Pool's are investment instruments that employ a specific set of strategies for yield farming. They make use of automation to continually invest and reinvest deposited funds, which help to achieve high levels of compounded interest. By using a Capella liquidity pool to compound your gains, you save thousands of transactions with their associated gas costs, and precious personal time. Instead of manually harvesting and selling rewards, buying more tokens, and reinvesting that continuously, a vault does all that automatically at a high frequency. Liquidity Pool's are the core of the Capella.Finance ecosystem. In a Capella pool, you earn more of the asset you stake in it, and could always withdraw from a vault at any moment in time. Capella.Finance also does not own user funds staked in vaults. However, it is generally best to view vaults as investment tools to store funds for the medium to long term in order to have the effects of compounding really kick in.When browsing the vaults on the platform, you will see the annual percentage yield (APY), which takes the frequent compounding into consideration compared to annual percentage rate (APR) which does not. You will also see daily interest percentages and the total amount invested in a vault by all users (TVL). Furthermore, one can see what underlying platform the vault is using as a source of revenue.Each vault can either refer to a pair of tokens invested in liquidity pools, such as BUSD-BNB LP tokens within the Binance Smart Chain ecosystem, or a single token invested in lending platforms or single stake reward pools. After depositing tokens to a vault, the user is supplied with vault specific Liquidity Pool Tokens which represent their share in the Liquidity Pools. {% hint style="info" %} **Liquidity Pool Tokens :** 1\) Stable Pool (SP) 2\) Coin Pool (CP) 3\) Dex Pool (DP) {% endhint %} Summarizing, Liquidity Pools can: * Efficiently execute yield farming strategies. * Compound rewards into the initially deposited token amount. * Use any asset as liquidity. * Provide one asset as collateral for another. * Manage collateral at a safe level to mitigate liquidation. * Put any asset to work to generate a yield. * Reinvest earned profits. Users can sit back and relax, and watch their investment grow! ## **What are LP Tokens?** A Liquidity Pool Token (LP) is an interest-bearing, tokenized proof of deposit that you will receive at the moment you deposit in a Capella vault. LP is unique per vault, e.g. you get SP (Stable Pool) tokens when depositing USDT into the Stable Pool vault. One can view SP Tokens as the receipt of your vault deposit. Capella.Finance users should hold on tightly to their SP Tokens and not sell or exchange it, since you would lose ownership of your staked vault assets if you did so! ## How do LP Tokens earn interest? Capella's vaults automatically create more of your deposited asset in the form of compound interest. By holding LP Tokens in your wallet, they are increasing in value against its corresponding vault asset. The number of LP Tokens in your wallet will remain constant, but the quantity of the vault tokens they can be redeemed for increases. This is also the reason why LP Tokens do not 1:1 match with the token amount initially deposited. ## How do I redeem LP Tokens for the initially deposited tokens? Whenever you want to withdraw the tokens that are staked for you in Capella's vault, you simply initiate a withdrawal transaction to exchange them. The LP Tokens are then taken from your wallet and burned, and your deposited assets plus yield will be given back to you. ## What are the advantages of the LP Token system? Capella's LP Token system has a few major advantages: 1. LP Tokens allow any user to withdraw their fair share of deposited funds; 2. The system allows you to deposit the LP Token receipt to a cold or hardware wallet for ultimate safety; 3. Your privacy is maintained, as you remain anonymous to Capella. Your funds in the vault are not tied to the wallet address from which you made the deposit, since the LP Tokens are the only evidence of your share in the vault. Therefore, you could withdraw your share of funds from a different address if you moved your LP Tokens to it; 4. LP Tokens have tax benefits: since you're not selling off rewards, nor getting staking rewards direct to your address, you do not have taxable events when you have funds staked in a vault; 5. Lastly, LP Tokens can be used as interest-bearing collateral. ## **How often do the vaults harvest their profits and reinvest?** Vaults are normally harvested multiple times daily and profits are automatically reinvested (compounded). ## Why can't someone just do this themselves? They could, but Liquidity Pools help you save on personal time and transaction fees, maintain healthy collateral to debt ratios, self-optimize for the best possible yields, and automatically reinvest earnings. Attempting to do this manually would result in large inefficiencies. At Capella we like to say: "Sit back and relax, the LP does all the work for you." ## **What is the vault fee structure?** Liquidity Pools have a performance fee structure, taking 25% of harvest rewards. All 25% on profits is distributed back to the $CAPE stakers. The fees are already built into the APY of each vault and daily rate. You do not need to calculate these yourself. The performance fee on additional yield i.e. vault profits is distributed back to $CAPE stakers and is the main source of Cape.Finance's platform revenue. A part of it also funds the Governance Treasury which is used to further fund platform development and security and other initiatives. The performance fee was also implemented to promote community engagement and governance participation. A successful and engaged community is critical for our future growth, which in-turn rewards platform users even more.Furthermore, vaults have withdrawal fee. The main purpose of this fee is to prevent possible exploits from bad-faith actors. Without the fee, somebody could deposit just before the harvest() function execution and withdraw straight after that event, taking a % of the gains generated by legitimate stakers. Withdrawal fees stay in the vault and are shared amongst vault funds. ## **Does the performance fee get taken out when I withdraw my funds?** * No, the performance fees are on profits and are taken every time someone calls the harvest function. ## Does the vault page show the APY? Yes. Our displayed APY values reflect the predicted rate earned on a vault in a year. This rate is determined by the underlying platform it uses, the strategy that it is interacting with at the time, the total amount of funds in the vault and also takes into account the effect of compounding. As a unique feature, we have also included all vault fees in the APY calculation. What you see is what you get! ## What risks do the Liquidity Pools have? Capella LP Tokens are audited, but this does not mean that a vault is entirely risk free. Below are some of the general vault risks: * Assets deposited into the vault have no risk of decreasing in quantity but can decrease in monetary value. * As with any smart contract, the ultimate risk is that an investor's funds can end up stolen or unable to be withdrawn. The team does take steps to quantify the security risks of smart contracts and only will interact with ones that meet a specific set of requirements after excessive testing to make sure the underlying platform does not contain so called 'rug-pull' functions. ## **What are the different vaults?** * **Money Market :** Utilizes lending platforms, such as Venus on BSC, to generate the highest possible yield for these coins (e.g. BUSD, BNB, LINK, DOT, DAI, USDT, ETH, or BTCB). * **Native Token Farming :** Takes advantage of the high yield on popular farms by depositing another asset to earn, sell and compound profits of the native reward token. ## What will I get out when I make a LP withdrawal? You will always withdraw the token type that you deposited, because at Capella Finance you earn what you stake. You will get the amount you deposited plus the yield generated minus the vault withdrawal fees. ## **How often are balances updated in the vaults?** * Pending rewards are not reflected in the balance until they are swapped for the initial deposited token. This can vary depending on the strategy running. ## **How do vaults get added to Capella.Finance?** New potential vaults can be discussed in our Discord in the #whiteboard channel. Our strategists then add the potential investment strategy to our strategy list. A priority is assigned to each new, potential strategy based on its APY, TVL and sustainability. Our developers/strategists then attack the list from top priority to bottom. The official forum is used for submitting actual [vault requests](https://discord.gg/QGzjgxgU).
# The First DeFi Search Engine - Vaults Information Aggregator Finding the best available investment options across the Defi is not an easy task even for the most professional. This is a pain that will grow larger and larger as the DeFi space evolves. Finding the best place in terms of returns is far from simple, but understanding the risks is a whole other game. We are building the first DeFi search engine that will allow easy scouting and analysis of the vast available investment options across the DeFi. The search engine is our primary product, and its basic features will be open for everyone to use free forever as an open-source project. The search statistics will help us better understand how to prioritize the next vaults to be integrated into the Capella-protocol. Every indexed protocol will be available as a search result. Indexing a protocol includes on-chain historical yield analysis and real-time monitoring of yields. Calculating APY on-chain can be tricky and therefore we will use a centralized DB on top of the protocol on-chain analysis capabilities of yields and security. In the beginning, we will manually index protocols to show as search results, but soon enough a standard interface of yield optimizing strategies protocols will be invented just as it happened with websites and html. # Referral Program Earn rewards for up to 3 levels of your referral network tree At Capella Finance we're all about empowering users to access DeFi and give financial opportunities to their friends and community. And as a bonus, everyone can get the opportunity to earn an extra stream of income too. ## **How it works** With the Referral Reward Program, we offer a 3-level referral structure that allows every user to earn rewards when their referral friends earn rewards on the platform through staking/yield farming activities. As such, after sharing your referral code, you will earn 18% of the rewards earned via staking/yield farming activities through your 1st level member connections. On top of that, when these users invite their own friends, Capella Finance will also give you 6% and 3% of the rewards received through 2nd level member and the 3rd level member connections respectively. The period for earning is one year from the date of the first reward. To be eligible to earn from the Referral Reward Program, users will need to hold a minimum amount of CAPE tokens. ![](https://2758322706-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5sM87DbKsyg4SfeUfaJJ%2Fuploads%2FPPtdkpLR7DOil3DjI7v2%2FIMG_0483.JPG?alt=media\&token=7df0ad8f-85c3-43b3-b220-eae4db0d1dce) For example, John shares his referral code with Mary, which means Mary is John's 1st level referral. Mary then refers her friend, David, by sharing her code. This makes David Mary's 1st level referral and John's 2nd level referral. Similarly, Gary joins through David's code, so he is David's 1st level referral, Mary's 2nd level referral, and John's 3rd level referral. The referral tree continues to grow as members of the network continue to share their codes. So, Mary, David, and Gary are all in John's network. When these referral members oh John start earning rewards from staking/yield farming activities, Capella Finance will also give John rewards with the percentages followed by the scheme accordingly. This means John will get 18% of Mary's rewards, 6% of David’ and 3% of Gary’s. Similarly, the scheme applies to everyone in the network. ## **Grow your network** We’re inspired by our desire to play our part in spreading the word and accelerating the mass adoption of crypto. Our Referral Reward Program helps you bring financial opportunities to your friends and community, and as a bonus, you get a steady stream of income too. * **Easily track your earnings:** View how much you earned and get real-time updated reports on your referral code’s performance under your Account’s dashboard. * **High rewards:** We offer industry-leading referral payouts, with up to 3 levels of earning potential. * **Unlimited earnings opportunities:** There are no limitations on the amount you can earn. The more people earn on Capella Finance after clicking your referral link, the more payouts you’ll receive. * **No entry barriers:** Anybody can join the Referral Reward Program and start earning immediately. Once you register on the platform, you are ready to start. # Token info ## CAPE - Capella Finance Governance Token Cape is Capella Protocol’s governance token. It is deployed on Polygon blockchain and can be circulated through cross-chain bridges. The total supply is 1,000,000,000. ### Contract Address {% tabs %} {% tab title="Ethereum Mainnet" %} TBD {% endtab %} {% tab title="BEP20（BSC）" %} TBD {% endtab %} {% tab title="Polygon" %} TBD {% endtab %} {% endtabs %} ## Token Utility ### [Incentive](broken://pages/e6BcN2cLJSAQhnZFGv9d) * CAPE stakers receive **100%** of the platform's commission on a daily basis； * After staking 5000 CAPE you join our 3 Lvl affiliate and bonus program； * Every quarter, we will 5 % of our profits to buy back CAPE and burn them, until we buy 50% of all CAPE (500MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 500MM CAPE, leaving 500MM CAPE remaining. * Monthly we will 5% of our profits use for promotion after community voting * Lockdrop rewards for early Vaults users. * In the future, Capella Finance will build a decentralized exchange, where CAPE will be used as one of the key base assets as well as gas to be spent. ### [Governance](broken://pages/M0PaT8l4moJFCk3wwZsl) * For voting on renewal/upgrade/suspension/initiation of proposals； * For staking to obtain additional voting rights/weights； * Used to cover certain losses in lieu of risk. ### [Treasury](broken://pages/YsuBumFVTyMGOo2sSWkG) * For determining the use of the treasury's funds； * For Promotions； * For burning. ## Token Allocation Total token supply: 1,000,000,000 CAPE： * **5%** Seed Round; * **5%** Strategic Round; * 10% VC Partnerships; * **10%** Private Round 1; * **2,25%** Private Round 2; * **7%** Public Round / IDO； * **20%** Governance Treasury； * **10%** to Team； * **10%** to External Development Team; * **6,75%** Community Incentives; * **4%** to Advisors； * 10% Liquidity Pool. {% hint style="info" %} **Governance Treasury:** CAPE tokens are locked and will receive rewards in LP tokens that will be used for \ a) Team Development (50%)\ b) Buy back and burn (25%)\ c) Marketing (25%) CAPE holders decide all future distribution changes with our voting system. {% endhint %} # Treasury ## Governance Treasury All Capella Finance agreement revenues will be deposited into the Governance Treasury, and ultimately voted upon to determine how they are to be used. ## Revenue Streams ### Liquidity Pools * Capella Finance currently receives 25% from profits generated by Liquidity Pools. * 20% of all Cape tokens are Locked up for the Governance Treasury. All dividends will be used for growing Capella ecosystem. ## Expenditure Patterns for Governance Treasury All expenditure plans must be decided through a governance vote. ### Execution of Repurchase * Repurchase CAPE using the specified asset balance in the Treasury； * Repurchase CAPE using the specified asset balance in the Treasury to the agent address； ### Execution of Marketing & Sponsorship * Use of designated assets in the Treasury for Promotions. ### Execution of buy back & burn $CAPE * Using 25 % of Governance Treasury we will buy back CAPE and burn them, until we buy 50% of all CAPE (500MM) back. # Security ## Open-sourcing Agreement Capella Finance is an open-source protocol. All code involved in multi-signature management, contract management, and part of the design of the main funding operations is open-source. The code is audited for security. You can browse the publicly available code on our GitHub. ## Code Security Audit Report
DescriptionAuditorAudit typeDate
Capella Finance V1.01PeckShieldSmart contract
## Risk Consideration ### Change of contractual address When the contract address of the protocol disclosure is changed, it is possible that the contents of the protocol have been modified. These modifications may have also been generated through governance. Modified code that does not correspond to an audit report is a risk. ### Change of contract Owner(s) A change in contract owner may mean that the private key in charge of the asset is no longer secure. ### Hacking The contract is set up to call a whitelist, which to a certain extent avoids flash loan attacks, scripts, and other attacks. However, If the flash loan partnerships' contract has been attacked, it will cause a limit loss depending on the authority of the governance. # Cross-Chain Bridge ## Instruction Themis will be deployed on Ethereum but also uses a third-party cross-chain bridge. Using the cross-chain bridge service allows you to use TMS tokens outside of Ethereum. Before using cross-link bridges, you need to be aware of the following risks: * ERC20 assets will be held by a third party once they enter the cross-chain bridge. If the third-party generates a loss resulting in the assets not being able to cross back to Ethereum, you may be compensated by the third party, but the TMS on Ethereum may not be recoverable. * Before using the cross-chain bridge, try to make a small transfer. Test and confirm if the contract address of the assets is the officially published contract address. ## Cooperative Cross-Chain Bridge ### Chain Port Official website： # DAO-2-DAO ## Whitelisting for different DAOs Currently, our Yield Optimizer Protocol only supports contracts that directly integrate with our Liquidity Pool tokens. However, in the future, our community will be able to vote on the whitelisting of DAO contract addresses for direct access to our Yield pool's API.These authorized addresses will be able to directly interface with our Yield pool's contract API and access the funds in the Liquidity Pool. This will create the first ever DAO-2-DAO money market. Whitelisting has the following benefits - 1. It reduces the risk of being exploited by flash attacks caused by direct swap contracts.2. It increases the utility of our lending pool to service not just individuals but also DAOs. ### Business Information Submission Contact E-mail: ### Governance Gateway After reaching an eco-partnership with Capella Finance, our team will assist you with the proposal to access our protocol. * Contract audit * Business Cooperation * Proposal published * Governance * Deployment