I am sure that most of you (who like me are DeFi investors), were at the point where you felt unsure about investing into a promising protocol even after reading the docs, scrolling through their Discord, and looking at their Twitter. And how many times did you invest anyways, praying that all goes well and the protocol isn’t a “rug-pull”.
Obviously, scams, frauds, and hacks have been part of crypto since the very beginning. However, with the DeFi hype, they are as prominent as ever. The recent boom of Olympus DAO forks in late 2021, followed by Ring forks and now Tomb forks are just three project types where I have recently seen and encountered “rug-pulls” myself.
And while the DeFi space is maturing and most of the protocols are legitimate without fraudulent intents, the black sheep will always be there. We are in crypto after all — an unregulated market.
Do you want to know how much scammers made off rug pulls in 2021? According to Chainalysis the amount is sitting quite high at around $4Bn.
The turkish crypto exchange Thodex was responsible for around $2Bn. after suddenly disappearing with client funds in April 2021.
https://www.coindesk.com/markets/2021/12/17/defi-rug-pull-scams-pulled-in-28b-this-year-chainalysis/
With this being said, I always felt like there is something missing in all these different projects. Most of them are aiming for the Metaverse, GameFi, or just decide to evolve into a crypto Hedge Fund just like Wonderland.
But what if we would focus on giving back? Giving back to those who got scammed and lost significant portions of their portfolio in a “rug-pull”?
What is Auxilium Fund?
Auxilium Fund is a project I’ve been working on since November 2021. The Team of 4: Ozan (Founder), Tim (Strategist), Camden (Developer/Solidity), and Wiz (Developer/Frontend) is working very hard to push for Launch in Q1.
We’ve spent days in order to get a proper plan ready for this project. We want to give back and that will be our main priority. Of course, the investors should also be incentivized and be given reasons to invest in the protocol but if you are looking for the next 1.000.000.000% APY you can stop reading right now.
Instead, we are looking for balance and sustainability while giving back to those who lost.
You’ve already seen projects like OpenDAO or GasDAO happening in which you were able to claim some Ethereum if you’ve ever seen yourself buying either NFTs on Opensea or spending money on gas on the Ethereum Network. We felt that these projects in particular are pretty awesome and are giving back to the community. However, we also understand that the developers are aiming to keep the funds within their system. Otherwise, these tokens would just be dumped every time someone claims funds. So, to put it like this…
We want to become a mixture of OpenDAO as well as Olympus DAO. Obviously, our plans are clearly stating that we want to move away from both of these projects by the time we grow. The goal is not to compensate those who spent money on NFTs or gas — we want to give back to those who’ve truly lost a lot of money on “rug-pulls”. Unfortunately, there have been way too many to count.
Let’s get into some more details, shall we?
Auxilium Fund (Ticker: $AUXL) is a protocol that seeks ways of compensating “rug-pull” victims via NFTs and airdropped tokens. Investors who have lost funds in one of the so-called “rug-pull tokens” are automatically qualified via snapshot and will be able to claim the airdropped tokens (Ticker: $aAUXL) via our platform. The airdropped tokens are only claimable once and in addition to that the rug pull victim also receives an NFT which we call “Victim-NFT”. The use case of the Victim NFTs will be explained shortly. As the protocol also operates as an OHM fork and therefore has the same features as Olympus DAO, Wonderland, etc., you will be able to simply stake, mint, and wrap your tokens (3,3).
In addition to victims being able to claim free tokens as well as the basic functionalities of an OHM fork, we’ve also added some goodies for early investors here. There are 3 stages of “staking” your tokens on our platform:
To clear things up for you: “Genesis-NFT” holders are the early investors I’ve mentioned. They will receive an NFT which will grant them the highest possible APY the protocol can return. If you are staking and minting without the Genesis-NFT you will receive the basic APY. And last but not least — the holders of Victim-NFTs will receive the lowest APY on this project to ensure sustainability. But remember that those Victim-NFTs were airdropped for free!
Genesis NFT
Genesis-NFT holders are early investors who got into one of the 500 seats prior to launch. There is currently the whitelisting going on in which you could sign up in order to receive the pre-launch spot enabled for 75 investors. The remaining 425 spots will be handed out to those who will be one of the few first to invest in our protocol. If you are lucky enough you will be within the first 425 and will therefore be granted a spot when we launch the NFTs in early Q2. But back to the question again: What is the Genesis-NFT?
As you can see in the picture above, the Genesis-NFT grants you the highest possible APY on our protocol. If you own it, you will be able to stake your funds with way more profitable returns than you would by simply just staking or bonding. That’s the reason why the Genesis-NFT is so rare and will not be handed out by our protocol after the initial 500.
Don’t lose hope now! We’ve developed a very nice way to pick up a Genesis-NFT after the initial 500 are sold out. What if we tell you that you could breed yourself your very own Genesis-NFT? Sounds great, right? You will find out how by reading the Victim-NFT section.
Victim NFT
Victims of “rug-pulls” will be able to claim their NFTs when the contract recognizes the wallet via snapshot. You can’t simply add yourself some rug tokens from a malicious smart contract and then gain access to our beloved airdropped tokens. The snapshot will help us to identify who was invested in a rug pull and who wasn’t. If you were invested in the rug pull after it already happened, the smart contract will automatically disqualify you from withdrawing the aAUXL token. Only those who were invested in the rug pull before it happened will be qualified. To be exact here — we won’t have every rug pull in our smart contract, but will make sure to add more after Launch.
So what can the Victim-NFT holders do with their aAUXL? The aAUXL can be staked on our protocol. The system will recognize it as “sAUXL”. In return, you will receive sAUXL after rebases and will allow rug pull victims to even compound it like a “normal staker”.
Obviously, we don’t want to hurt the regular investors and holders of Genesis-NFTs by airdropping free tokens that would most likely get dumped on the market immediately. That’s why the airdropped token can’t be sold as no liquidity will be provided and the Smart Contract for claiming Victim-NFTs will be the only source of generating this token.
What other possibility is there for the Victim-NFT holders? That’s exactly where the Genesis-NFT comes into play. So, if you own X-Amount or more Victim-NFTs which will be tradeable on several NFT marketplaces, you will be able to breed your very own Genesis-NFT. This way, the rug pull victims will benefit from selling their NFT, the treasury will regain some funds through royalties, and the holders who breed a Genesis-NFT will receive their boost in APY. Now you might ask yourself: Why would someone purchase X-Amount NFTs in order to receive higher APY? The margin in these 3 stages will be enormous. You might just earn for example only 1% over the course of 5 days as a victim, 2–3% as a staker, and possibly more as a Genesis-NFT holder. This will cause some FOMO for those who don’t want to miss out on these high returns. The tokenomics will try to keep the price as stable and sustainable as possible, but most importantly we are seeking ways to reduce the selling pressure over time.
To sum it all up
So we have 3 Stages in our protocol. Each one of them has a range of ROI. We have 3 categories here as well: Genesis holders, staker, minter, and victims. Everyone can purchase our AUXL token on the open market. When staked, the AUXL turns into sAUXL, and rebases are distributed automatically.
People who don’t have any Genesis and are no victims either will be able to stake and mint their tokens. The victims will be able to claim NFTs which will also distribute aAUXL token to their wallets. The NFT has 5 different rarities: Common, Uncommon, Rare, Epic, and Legendary (each rarity holds its own AUXL value). The airdropped token can then be used to stake with the protocol. The rebases will be paid out in sAUXL and can be then withdrawn at any time. Another possibility is to sell the NFT to someone who wants to go through the breeding process as shown earlier.
aAUXL token can’t be sold as it holds no value. The new buyer of Victim NFTs won’t receive any of the previously claimed tokens if they have been staked previously. The staked aAUXL is not withdrawable. The only use case for the new buyers is to collect and breed it to Genesis. Royalties of each sold NFT will be sent to our Treasury to continue ensuring enough funds for either victims or Genesis Holders.
What’s next for the project?
Glad you asked, fren. We will continue to work hard on our project and engage with the community in order to provide the best possible solutions for us all. The project has successfully developed a roadmap to follow and will continue the development of our ideas.
The protocol will begin deploying the Smart Contracts on mainnet and will then be fully functional with our frontend. Right after launch, the only options available will be the basic staking & minting functionalities. We have an additional warm-up phase enabled to ensure that no funds are being drained by treasury-sniping etc. The Team will then focus on working on the whitelisting of the remaining 425 wallet addresses that will receive their Genesis-NFT once they are launched. The exact tokenomics are still being worked on and updated as we speak — in order to make this project as sustainable as possible. We will also announce major treasury investments once we have enough funds to make an impact.
In Q2 we will launch the Genesis- and Victim-NFTs which will hopefully help us with exposure! We are also in talks with Assure in order to KYC our project to make it more attractive for investors. The Smart Contract will receive an audit as well very soon. To push the security of our protocol further, we will be announcing a “Bug Bounty Program” for external and internal devs in order to help us fix severe and minor bugs which could potentially harm the protocol.
Auxilium will also release its own DEX at some point. It has been fully coded already — we just don’t think this would be the right time to launch it. And last but least the feature I’m most hyped about will be our very own Defi insurance protocol! The Launch is TBD as of now, but we feel like this would be a great addition to our project.
Final words
We know — it’s a lot. The team is working very hard in order to fix the last few bugs and to communicate the last bits and pieces. We are just as hyped as you are and we are quite certain that we will make a huge impact in the crypto space. We will pave the way for a different approach!
Of course, there might be a few setbacks here and there, but in the long run, we are here to stay and will continue evolving and will continue to make our community proud.
This is Auxilium — The new protocol that enables compensation for “rug-pull” victims.
