Objective: Significantly increase the liquidity of the ABRA token on Cadabra 2.0 by repurposing the protocol-owned USDT position.

Background

When Cadabra transitioned from Cadabra 1.0 to Cadabra 2.0, our tokenomics underwent a significant change. In Cadabra 1.0:

• All ABRA tokens were pre-mined and deposited into a concentrated liquidity position on a Uniswap V3 pool, ranging from $0.25 to $900 per ABRA.
• Initially, this was a single-sided position (only ABRA). As users bought ABRA, the position gradually became two-sided (ABRA and USDT). Upon moving to Cadabra 2.0:

1. We split this Uniswap V3 position into two separate single-sided positions: one in USDT, one in ABRA.
2. We withdrew all ABRA from its position and burned it.
3. Only the USDT position remained, with a price range of $0.25 to $0.27.

This remaining USDT is effectively protocol-owned liquidity (POL), accumulated when users bought ABRA during Cadabra 1.0. Many of these buyers were also those who locked their tokens, so we chose to leave that liquidity in place during the transition. Initially, this “USDT wall” was meant to absorb potential selling pressure as Cadabra 2.0 launched.

However, now that Cadabra 2.0 relies on user-provided liquidity (incentivized through more traditional liquidity mining and farming), this legacy USDT position—still around $70,000—is out of range, given the ABRA price fluctuating between $0.60 and $0.80, well above its designed range of $0.25–$0.27. Consequently, it generates no fees and no longer serves as a practical price wall.

Proposal

We propose to:

1. Withdraw the $70k USDT from the old concentrated liquidity position.
2. Pair that USDT with an equivalent $70k worth of newly minted ABRA (totaling $140k).
3. This combined $140k will be deposited as full-range liquidity (in the same way as our current ABRA/USDT strategy works).
4. The DAO will retain full control over this liquidity.
5. Fees generated by this liquidity will be allocated by the team to support the continued growth of the protocol and to incentivize the development and adoption of new strategies.

We believe this approach will bolster ABRA’s liquidity, support its price stability, and align the interests of both the community and the protocol. We encourage all DAO members to vote in favor of this proposal and help us lay a stronger foundation for Cadabra 2.0’s ongoing growth.