Welcome Redactooors to the latest edition of the [REDACTED] Files!
With so much happening in the space and so many places you could be, we are happy to have you here with us. Now, without further adieu, here’s the latest alpha on the Cartel.
Operation BTRFLY on da Moon
With the highly anticipated rollout of the Hidden Hand marketplace and the Redacted V2 launch arriving this month, the Cartel has been busy making moves. The protocol treasury recently surpassed $100M in non-BTRFLY assets and set a new record of over 10500 token holders. For more granular insights into the protocol’s growth, check out the new Dune Redacted policy metrics dashboard.
The alpha leak that really caught fire this week was the announcement of the proposed Curve 4pool partnership between Redacted, Terra, and Frax.
What is the Curve 4pool?
Composed of UST, FRAX, USDC, and USDT.
Frax and Terra are two of the largest protocol holders of CVX and compete for CVX/CRV emissions.
4pool brings stable-pool liquidity depth. This allows DeFi platforms to utilize decentralized stablecoins easier, with more capital efficiency.
Redacted votes exclusively for the UST curve gauges (using the Cartel’s current 1.2M vlCVX holdings) in exchange for Votium incentives paid to Redacted at 5% over the market rate.
The Votium incentives will fund the protocol, seed deals, help in setting up single-side LP, and build up a stable treasury.
Opens the ability to expand markets to the Terra Ecosystem
The Road To V2
Since launch, [REDACTED] has successfully accumulated a treasury overflowing with a bouquet of DeFi’s most instrumental governance tokens such as CVX, CRV, TOKE, FXS and more!Now, it is time to reclaim our backing per token by reducing rebasing emissions.
The same bonding/rebasing mechanics pioneered by OlympusDAO were used to great effect to facilitate the [REDACTED] treasury bootstrapping phase and now we’re pivoting to something more sustainable for the Cartel long term. As a protocol focused on optimizing capital efficiency and exerting influence over liquidity provisions in DeFi, the [REDACTED] team has been working hard to roll out the V2 roadmap. It promises to deliver a steady stream of non-native value for BTRFLY token holders, curtailing inflation.
Take a look at the brand new Teaser Video on the new V2 ecosystem and hang on, it's coming fast!
Amidst preparations for V2, the [REDACTED] internal policy team implemented the proposal to reduce the rebase emissions reward rate across 80 days, protecting the backing per token. The measure was designed and executed to preserve governance/revenue power of each individual BTRFLY token. This also helps maintain the protocol’s ability to continue issuing bonds in exchange for desired DeFi governance tokens and grow the treasury efficiently.
Over the period of time that this policy has been in effect, price action to treasury value has fluctuated. At different points, APY rate adjustments have been triggered, but overall, the policy remains on track and is performing as intended
Partnerships
Official Hidden Hand Launch Partners
Fractional-Algorithmic Stablecoin partially backed with collateral and partially stabilized algorithmically.
Partnered with [REDACTED] with both Hidden Hand and 4pool.
veFXS has voting power in Frax governance proposals and also collects rewards
In the future, the veFXS system can be expanded to vote on AMO weights, earn additional yield in new places/features, and be treated as a governance token bond rate.
Incentivize staking FXS for veFXS by gaining bribes to vote
Protocol combining options, futures, and fixed income strategies to improve risk-return
Hidden Hand will be used to bribe veRBN votes for governance, gauge voting, boosting $RBN rewards on staked vault tokens, and sharing of protocol revenue.
Theta Vaults are a yield-focused strategy on ETH and WBT with Covered call (Vault writes out of the money covered call) and Put selling (vault writes out of the money puts)
Protocol saves gas by aggregating thousands of transactions to a few per week
Balancer launched veBAL this week, boosting liquidity mining yield and allowing voting for pools.
Aura, the “Convex for Balancer” protocol built on top of the Balancer system, helps provide maximum incentives to Balancer LPs and BAL stakers. Full Write up on Aura
Hidden Hand will allow incentivised voting to direct liquidity mining emissions and protocol revenue and rewards.
DAO2DAO Credit Line W/ DebtDAO
Protocol born out of the Olympus incubator program approached the Cartel, offering to provide Redacted with a revolving credit line of up to $5m ($2.5m in Frax and $2.5m UST).
Would work like a credit line. The protocol would withdraw what's necessary
No liquidation risk or up-front collateral. 9% APR on borrowed Stables paid by pool emissions
Snapshot and AMA coming soon
Refer to the RFF and writeup on the Redacted Commonwealth Forum for the more in depth description.
Governance
Gauge controller added to BTRFLY-ETH Curve V2 pool after passing vote
Vote reached quorum and passed on Convex and CurveDAO
Pool was designed to benefit CRV, CVX and BTRFLY holders and looks to solve the liquidity issues that hinder BTRFLY liquidity and increase stability
Added gauge controller to start earning Curve rewards and the ability for Redacted to point the emissions
wETH bonds are live right now to pull ETH into the treasury to provide liquidity to the ETH paired pools
pBTRFLY burn
25M pBTRFLY existed at genesis and the 1st 12.5M were distributed to early investors/supporters, the founding team and OlympusDAO
Original plan was to compensate contributors with the remaining pTokens but the DAO now has the means to compensate contributors and relevant operations using the protocol itself
Having pTokens exist and not used poses an unnecessary mass dilution threat to the Redacted protocol and ecosystem.
After a successful RFF, the proposal moved to Snapshot, and passed with 99.83% to burn the remaining 12.5M pBTRFLY
Summary
With V2 launching this month, we are all in for some big things coming out from the team at Redacted. Stay tuned for the next edition of [REDACTED] Files where we will go into all the details on the Pirex Platform! A brand new liquidity marketplace, bringing flexibility and optionality to your CVX tokens. All powered by Redacted.
“Time Flies In Butterfly”
Action Items
[REDACTED] Calendar!
Keep up with community calls and meetings by subscribing to the Redacted Events Calendar.
Important Links
Redacted Community Call: Team w/ Vesta Finance: 3/24/22
Navigating DeFi Podcast: Redacted Cartel, New Order DAO, and DeFi Tokenomics w/ Sami
[Redacted]
Socials
Docs
Governance
Contributors: EthHunter, Molecularity, The Psych Guy.