AlmostOne Fund (AOF) AlmostOne has successfully launched a Smart Fund through a Balancer Smart…

5 min readNov 19, 2020

AlmostOne Fund (AOF)

AlmostOne has successfully launched a Smart Fund through a Balancer Smart Pool.

Why should you choose Almostone Fund (AOF)?

By joining AOF, you will get exposure to major crypto-assets (BTC and ETH), a trusted stablecoin (USDC) and major DeFi tokens.

AOF is composed of and backed by a selection of strong digital assets:

BTC
ETH
USDC
AO (AlmostOne)
DPI (DefiPulse Index)

This selection offers Liquidity Providers a solid exposure to the crypto market while reducing the portfolio’s volatility.

The assets in AOF are used to provide liquidity to the market and generate more income through:

- Earning fees generated from trading

- Maximizing profit through rebalancing, which has been proven as a market-outperforming strategy.

- AO farming

Dinamic Fee

AOF has a dinamic fee adjustable to market conditions to optimize profits through asset rebalancing.

When assets in the fund have a difference in value, it creates an arbitrage opportunity for bots to make a profit from your fund’s liquidity, by dinamically adjusting the fee we can optimize profit for Liquidity Providers and reduce impermanent loss: lower fee on sideways market to generate more trading fees and a higher fee on volatile periods to optimize rebalancing.

“These high-fee pools can be used as great substitutes to conventional index funds or treasury management strategies where there is no rebalancing until a certain maximum deviation from the nominal % allocations is reached. In other words, these Balancer pools will allow the actual value distribution to fluctuate around a desired basket before arbitrageurs step in.”

You can read more about balancer pools and the advantages of choosing a higher fee
here:

https://medium.com/balancer-protocol/high-fee-balancer-pools-for-swing-trading-8bc1c169a4c2

https://medium.com/balancer-protocol/80-20-balancer-pools-ad7fed816c8d

Dinamic Weight Adjustment

AOF is a variable weight pool. Weights can be adjusted to market conditions to protect/increase AOF’s overall value in certain market conditions:

When a coin has risen a lot in price and becomes overvalued, it has a greater chance of correcting. AOF can reduce that coin’s weight and increase USDC’s (or WBTC, ETH…) weight to reduce the potential downside of AOF, keeping a higher percentage in a stronger coin to buy back later at a lower price (by increasing weight).

When a certain coin is underpriced, a gradual weight change can be implemented to gradually increment the weight of that coin. Arbitrageurs will step in to trade the new weight ratio thus rebalancing AOF’s assets. By doing this, AOF increases the balance of the coin we believe is going to increase in price.

You probably already know about BTC, ETH and USDC but… what is DPI?

“The DeFi Pulse Index is a blockchain financial product that lowers the barrier to entry for new users who lack the expertise to gain exposure to DeFi, and provides experienced users with exposure to DeFi through one single asset.”

DPI is a tier 1 token that leverages blockchain technology to create an index of the top DeFi tokens, 100% backed by its components. It is launched by a DeFiPulse, a leading company in the DeFi space. We conclude it is a good portfolio inclusion that will provide additional value to AOF users and will bring a considerable amount of rebalancing fees.

DPI composition (19/11/2020):

Read more about DPI:

https://defipulse.com/blog/defi-pulse-index/

https://www.tokensets.com/portfolio/dpi

https://www.pulse.inc/

How to get AOF?

To get AOF (AlmostOne Fund pool tokens), you have 3 options:

- Buying from market

- Adding liquidity with multiple assets (You will need to have all the assets composing AOF in their respective weight %)

- Adding liquidity with a single asset (This is the easiest way, but it will normally incur in a bigger slippage)

You can read a more extensive tutorial on how to add liquidity to a Balancer Pool.

AO Farming — Liquidity Mining

Users who add liquidity to the AOF pool can increase their rewards through Liquidity Farming!

66% of AlmostOne (AO) supply is locked in the farming contract. Users can progressively unlock this AO by periodically clicking the “Claim” button to get the accumulated profit.

To be able to claim AO rewards, users need to stake their AOF tokens for a selected period of time:

- 3 months

- 6 months

- 12 months

To stake, users lock their AOF for 1/3 of the selected period:

1 month — 3 months contract

2 months — 6 months contract

4 months — 12 months contract

Users can not withdraw their AOF during the lock period, after it has elapsed, there’s a penalization period:

15% Penalization when withdrawing in the second third of the contract’s duration:

2nd month — 3 months contract

3rd to 4th months — 6 months contract

5th to 8th months — 12 months contract

10% Penalization when withdrawing in the last third of the contract’s duration:

3rd month — 3 months contract

5th to 6th — 6 months contract

9th to 12th months — 12 months contract

When the contract duration is over, users can remove their AOF without a fee.

Fees paid by early unstakers will be distributed to the rest of Liquidity Providers in AOF, increasing their share % of the total pool. Due to these fees, a user might end up withdrawing more AOF than he initially deposited, even during the penalization phase.

This system is designed to build and maintain long-term liquidity and penalize weak-hands while adding a rewarding incentive for long-term holders.

How are rewards calculated?

Rewards increase on every block for farmers, they are calculated using this formula:

Rewards = StakedAOF * blocks / Difficulty

Each contract has a different difficulty, paying more rewards for the longer term contracts.

3 month = 1x rewards

6 month = 1.25x rewards

12 month = 1.5x rewards

How to claim rewards?

Connect your wallet and click on “Claim”, confirm the transaction and you will receive all pending rewards.

How to stake?

You will need to connect your wallet (Metamask) to execute these operations:

1º Approve your AOF to be transferred to the farm