Redacted Cartel ($BTRFLY) 🦋 I know sumfin you Dinero!
Redacted represents everything I [ ] about crypto. Its got marketplaces, LSD, bribes & all sorts of tomfoolery. What else do you need to know? ... A lot actually, so read on farmer 👇
NARRATIVES: (5)
LSDs (LSDfi via $pxETH)
Stable assets (Dinero) 🚜
Defi Flywheel
Real Yield (Bribes & Governance Marketplaces)
Ethereum Blockspace Wars (MEV) & Curve Wars
CHAINS: Ethereum, Arbitrum (via Hidden Hand)
PREFACE:
Redacted eh? … what is ol Dirt to say?
Well let’s keep it simple. Redacted was inspired by OHM to make a protocol with the intent of growing POL or Protocol Owned Liquidity. They did this by creating a DAO and designing products to attract users & their governance tokens. Two products they made were able to capitalize on the Curve wars.
These products (Hidden Hands & Pirex👇) were able to attach a value to your personal voting & emissions directing rights ~ with the added benefit of composability.
Now you’re probably thinking WTF is this tractor on about?
Well let’s put it this way, say Dirt is a land owner in Georgia and cuz of that he gets to choose which seeds to plant and which stores get the produce. But Billy Sue is a carrot cake maker and so she needs a lot of carrots so she pays you to plant more. And Gene, well he is a greasy businessman and knows the carrot cake market is booming, so he bribes you to vote in favour of decreasing the number of cake stores so that his flourishes.
And Dirt don’t give a [ ] what plants are planted or who eats them, so you take the bribes and go on your happy farmer way! More carrots go to fewer participants, some win some lose, but more importantly Dirt is happy.
Now imagine Dirt could take his powers and shop them around for the best seed → produce yield… now we’ve got composability 👀
Oh yeah, they’ve also just released a litepaper for their new stablecoin $Dinero. This opens a whole new can of worms…
Read on to learn more 👇
TOKENOMICS: (4) [ as of 4/13/23 ]
We like Redacted’s tokenomics =
Very highly staked with 74% locked up (at time of writing) & a high APY
Fair distribution of tokens
Lots of utility from their tokens with more on the way #DINERO
Albeit low circulating supply & FDV/TVL >1
At least it’s got a longterm emissions schedule, meaning the team and investors have to be more aligned with longterm protocol health.
There are likely several bull/bear markets till we get to full circulating
The Pulse Emissions have several uses key to the Redacted Cartel’s success =
Incentivizing their protocols
Funding liquidity pools
Building non-BTRFLY treasury (thru Bonds, DAO Swaps etc)
Participating in seed rounds
MECHANICS: (5)
Composability: The core concept for Redacted’s product suite and built into everything they code.
End Game: Become fully funded by protocol revenue
Dirt’s “What it do?” =
Written for simplicity 🚜
Redacted is the staking & governance hub for the $BTRFLY ecosystem
Pirex = Introducing the creation of liquid wrappers which auto-compound and tokenize future yield/vote events. Allowing users to retain the governance and the bribes.
Pirex has 3 modes, EASY, STANDARD & EXPERT (Coming soon). Which essentially varies from standard ecosystem auto compounding of rewards, all the way to being able to trade future yield & future voting. This means protocols can buy governance token holders rights to future votes or bribes 👀
The following protocols are playing =
Convex ~ pxCVX
GMX ~ pxGMX + pxGLP
If you only understand one thing, make it this: Pirex & Hidden Hand were created to increase liquidity, yield and utility for governance token holders.
They do this well & they have many frenz 🚜
Hidden Hand = Governance token holders get bribes for directing emissions. Created because of the curve wars. Several protocols are using to maximize their governance participation. Novel and extremely useful.
$Dinero (litepaper here)
CDP stablecoin (like MakerDAO) backed by ETH.
pxETH; Redacted’s very own LSD
Will be able to use $Dinero as a gas token once there is enough ETH to spin Redacted’s own validator sets. This will become the Redacted Relayer ~ a flywheel for validation thru premium RPCs.
Expect innovation around MEV (understand MEV here)
Premiere RPCs = privacy & MEV protection
$rlBTRFLY = Revenue Locked $BTRFLY (16-17 weeks) paying incentives every 2 weeks. The revenue comes from treasury earnings, Pirex & Hidden Hands protocols.
Want to know in greater detail? Read the docs here!
FINANCIALS: (4)
Fees =
HH’s (Dune link) earns Redacted 4% on all bribes added to protocol
50% to treasury
50% to $rlBTRFLY holders
Every two weeks
Pirex (Dune Link) is a Redacted incubated product. The product has various fees in place to protect its product from abuse and to also protect the native token holders (ie CVX & GMX).
75% of fees goes to Redacted
42.5% to $rlBTRFLY holders
42.5% to treasury
15% to DAO reserves
$rlBTRFLY Revenue =
50% of Hidden Hand’s revenue → holders.
42.5% of Pirex’s revenue → holders.
rlBTRFLY’s percentage of revenue from the treasury is outlined below:
Treasury =
Funded by 15% of $BTRFLY supply and 15% of protocol revenue
Currently holds $32M
$4M mostly in $DAI within wallet
$28M split amongst Convex, Olympus, Curve, Frax, Velodrome, GMX & Aura
GROWTH: (4)
ROADMAP: (4)
TEAM / COMMUNITY: (5)
The team has about 20 full time employees plus a slew of discord members that are very active and knowledgable. When I find projects with buzzin’ communities like these, I get excited. I found that same thing while doing my Trader Joe report in January👇 Check it!
ECOSYSTEM / PARTNERSHIPS: (5)
Hidden Hands =
Aura, Balancer, Bunni, Floor DAO, Frax Finance, Idle, Ribbon Finance, Saddle & Tokemak
HH is a market for governance bribes, which creates an incentive for token holders ~ becoming a flywheel
Holyheld = crypto debit card
New Order DAO incubation project
Bond Protocol = Purchase discounted $BTRFLY
Jones DAO employs $AURA strats inside HH's vaults
LLama Airforce operators a pxCVX vault (easy mode) to auto compound users CVX. Which gives users uCVX (Union Convex) which is composable, ie can be lent against inside Rari Fuse.
COMPETITION (3)
Before Dinero, Redacted offered very novel crypto products, with very few direct competitors. CLever for one offers Convex staking but with higher fees, lower peg liquidity, the inability to actually withdraw, or all of the above.
Other protocols are working on acquiring GMX, like JonesDAO & Plutus, but they focus on leaning more into leverage games or tokenomics rewards.
With the addition of $DINERO to the product suite, Redacted is entering into a new ballpark of competition. This is why I consider it a 3 out of 5 on the Dirty rating. The decentralized stablecoin space is very crowded and so is the staked eth space ~ but these are good problems.
Iterate or die
SAFETY: (4)
As with most DeFi protocols, there is always going to be systemic smart contract risk. Never take that for granted. Redacted has a solid track record but always keep this in mind.
BULLISH: (5)
Social =
@holyheld sneak previewing debit card functionaility with $Dinero
@0xDamien on breakthrough value of $Dinero & $Btrfly
@farmerbrowndefi on LSD entrance w/ fat convex supply to boost liquidity
@tradinglord & @permanentgainz bullish
Large CVX, CRV & FXS treasury holdings
Back weighted vesting schedule for team & investors ~ incentivizing long term holding and protocol development.
Highly staked at 74%
Beautiful flywheel effects
Whats good for CRV is good for BTRFLY ~ re CRVusd
$Dinero stablecoin launch to bring added utility to the ecosystem
Adding Stables & LSDs to Redacted’s flywheel
Partnering with TapiocaDAO to reduce USDC centralization concerns
Team content on building and not worrying about bullshit
Active governance for protocol developments
ps Tetranode holds it
Likelihood for further chain expansion is high, given that #HH’s is already deployed to Arbitrum
BEARISH: (4)
FDV/TVL rating not fantastic
Mainly due to low circulating supply & a slow bear market recovery
$Dinero will use USDC as part of the PSM (Peg Stability Module)
Founder 0xSami is aware of the concerns as is working to minimize as soon as possible
Liquity no like PSM & think $LUSD better
Competitive landscape
CONCLUSION:
This som bitch gets a Dirty Score of 4.25, which hot damn ain’t so bad.
Expect these fellas to do very well the next time a bull market comes around and it becomes a game of liquidity and yield control. Expect even more wen Dinero comes on line … which really leads me to my conclusion =
Redacted is not an if investment, its a wen… and timing is everything in this game. We all asking “wen dinero” and the odds are itll catch you by surprise. So NFA but don’t fade for too long, she wont be >400 Rank MCAP for too long.
As always, stay thirsty! ~ I actually never say that, but you get the point! Keep feeding!
Nothing in this report should be misconstrued as financial advice. Any investments should be taken at the sole discretion of the reader and/or counter party.
As always, dig deep and DYOR.
Made with love,
great work, appreciated
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