What is Redacted Cartel? Things to know about the Real Yield Redacted Cartel project

• Overview of the Redacted Cartel project
• What is Redacted Cartel?
• Salient features of the Redacted Cartel
• How does the Redacted Cartel create value for users?
• Overview of Tokenomic
• What is BTRFLY token?
• Total Supply and Inflation of BTRFLY
• summary

Overview of the Redacted Cartel project

Before learning about the project, let's briefly understand the concept of Real Yeal. The term "Real Yield" can simply mean the actual profit after deducting inflation, it is similar to a stock dividend. 

In DeFi, Real Yield refers to the actual yield generated by sustainable economic activities from services provided by DeFi protocols. Example: For Uniswap, the income collected from trading fees is paid by the trader to the liquidity provider for the protocol.

What is Redacted Cartel?

Initially the Redacted Cartel was forked from OlympusDAO using the POL (Protocol Owned Liquidity) mechanism, to accumulate as much liquidity as possible from the Curve ecosystem. At that time, the project allowed Bonding and Staking users to combine with Ve(3,3) of OlympusDAO to mint BTRFLY coins provided from the project's treasury with an APY of thousands of percent.

However, in the long run, this model is inefficient and has many problems, so the Redacted Cartel team has switched to a new model with 3 main features:

• Hidden Hand
• Pirex
• Dinero

With innovations, Redacted Cartel becomes an effective assistant for DeFi projects in terms of governance, liquidity empowerment, and cash flow control.

Salient features of the Redacted Cartel

Hidden Hand

The "Hidden Hand" was first coined by the economist Adam Smith in 1776, it means the following: 

In a free market economy, each individual pursues his or her own personal interests and interests. And it is the actions of these individuals that tend to promote and strengthen the interests of the whole community through an "invisible hand - Hidden Hand".

The Hidden Hand in the Redacted Cartel is inspired by the above economic thought combined with the ve-Tokenomic model to create a marketplace for DAOs, providing an environment for "buying" and "selling" voting rights for parties. needs with a very simple operating mechanism. 

Specifically, individuals and organizations wishing to "buy" voting rights will send a bribe into the Pool that they want to increase the reward, whereas the party "selling" voting rights can vote for That Pool or simply delegate your voting rights to Hidden Hand. The Redacted Cartel platform will then automatically vote for the Pool with the highest return.

Up to the time of writing the article Hidden Hand, Redacted Cartel is supporting the DAO market for projects such as: Curve Finance, Convex Finance, Balancer, Aura Finance, Frax Finance...

Standard Mode (Standard Mode)

This mode allows users to load CVX into Pirex and receive pxCVX. In particular, the number of CVX that the user loads in will be guaranteed 1:1 with vlCVX and continuously re-locked (re-locked) to maximize the locking time, except for the case where there is a request to unlock the CVX from user. 

The rewards will be distributed to users every 2 weeks after the voting rewards are allocated from the governance platforms supported by the Redacted Cartel.

Easy Mode (Easy Mode)

If a user wants to accumulate pxCVX rewards from locking up the CVX, they can continue to lock the pxCVX rewards into the ERC-4626 Pounder Vault. After that, the user will receive uCVX, which will continuously accumulate every time Pirex receives a reward from Bribes.

Advanced Mode (Expert Mode)

Advanced mode is developed specifically for users/or platforms who want to leverage on the number of votes they have. That is, users can receive Bribes rewards in the future and platforms can “pre-purchase” future votes.

After obtaining pxCVX, the user can lock pxCVX into the Vault of advanced mode and receive spxCVX (the longer the lock-up period, the more leveraged the voting power).

On December 22, 2022, Pirex announced that they would be launching a new GMX product, pxGMX and pxGLP. This product incentivizes stakers to deposit GMX into Pirex Vault, in order to accumulate more Multiplier Points, to be able to receive more rewards in the share of transaction fees shared by GMX holders.

Fee structure

Pirex will generate fee income every time it receives a reward from 

• vlCVX with 4% of the cost generated.  
• Every time a bonus is stacked with 7% of the stacked fee 
• 1.5% exit fee from users will be shared back to uCVX holders
• 5% fee every time a user converts from pxCVX to CVX. For a lock time of more than 17 weeks, this fee will be reduced to 1%, the longer the lock, the lower the recovery fee will be.

Of Pirex's revenue, 75% of the revenue will be returned to the Redacted Cartel at a rate of 42.5% distributed to rlBTRFLY Holders, 42.5% to the Redacted Treasury and 15% to the DAO's storage.

DINERO

This is the product that is receiving the most attention from the Redacted Cartel community. Dinero was revealed to be a stablecoin product with over-staking, backed by Ethereum Liquid Staking Derivatives. This product is expected to be launched in Q1/2023. However, at the moment Redacted Cartal has not released a whitepaper for Dinero.

Dinero will include:

• bfETH (LSD ETH)
• DINERO (Stablecoin) 

With the launch of Ethereum's Shanghai upgrade in March 2023, Liquid Staking Derivatives tokens such as LDO, RPL, SWISE, SD... at the beginning of the year recorded impressive growth. The Redacted Cartel's launch of the Dinero product promises to help this project capture more market share in the Liquid Staking Derivatives segment.

How does the Redacted Cartel create value for users?

The Redacted Cartel creates value not only through its main products, currently Hidden Hand and Pirex, but also through its rich treasury.

All governance tokens in the treasury earn profits – either by being deposited in external Farming Pools or by voting in metrics to accumulate bribes. Even protocol-owned liquidity (POL) generates a return through swap fees.

As seen above, the income generated by the treasury is apportioned according to the size of the treasury. Based on the current size of the treasury, 15% of the profits go to rlBTRFLY, 15% to the DAO reserve, and 70% back to the treasury.

In addition to creating value through the assets it holds, the treasury also creates intrinsic value for BTRFLY holders and essentially supports the supply of BTRFLY. This is especially useful in volatile and unfavorable market conditions as it creates a feeling of confidence and security.

Overview of Tokenomic

What is BTRFLY token?

BTRFLY is the native token of the Redacted Cartel project. After the model change, the Redacted Cartel will have a fixed total supply of 650,000 BTRFLY and a circulating supply of 100,000 BTRFLY.

Functions of BTRFLY:

• Participating in platform governance: Users who lock BTRFLY receive rlBTRFLY – a token for participating in governance
• Reward: Owners of rlBTRFLY will receive a portion of revenue from Pirex and Hidden Hand with BTRFLY inflation

Note : Each Epoch will be ended every Thursday morning and rewards will be distributed to users every 2 Epoch. 

Total Supply and Inflation of BTRFLY 

According to the token allocation schedule, we can see the inflation of BTRFLY in the first 4 years is very large. However, the inflation rate from year 4 to year 10 will be extremely low. BTRFLY tokens are allocated to the parties as shown below:

summary

The Redacted Cartel was really successful with the v2 version of the protocol. By structuring their core products around markets of great advantage and implementing a solid token model, they have positioned the protocol in a very financially profitable way.

When we see a model of transformation from valueless governance to cumulative value governance, the Redacted Cartel will be at the forefront of this segment. The Redacted Cartel team has regularly released new features and implementations to give the protocol an edge over others. And if the Redacted Cartel plays its cards right, it could be building an ecosystem that will be pivotal to DeFi as a whole. 

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