Protocol Economics & Fees
This section details the various fees and revenue streams going to RAAC and other parties.
Tokenization & RWA Index
RAAC takes a protocol fee on the rental income flowing through its ecosystem which is used to help maintain the physical real estate:
80% will go to secondary RWA gauge which directs rewards to LPs in the RcvrUSD/DEcrvUSD and $iREET/crvUSD liquidity pool (or other gauges in the future)
20% will go to pay for software development, professional services, and administration (Protocol Services).
Trades on REET NFTs are subject to a 2% royalty fee on every trade, which is distributed as follows:
0.5% to $veRAAC holders
0.5% to Protocol Services
1% to RAAC’s Treasury
Whenever a user adds a REET NFT to the RWA Index, 2% of the minted $iREET is allocated to the RAAC Treasury.
$iREET, the tokenized share of the RWA Index, comes with a 2% token tax, similar to the 2% royalty fee of REET NFTs.
Revenue generated via the token tax is distributed as follows:
0.5% to $veRAAC holders
1% to Protocol Services
0.5% to the RAAC Treasury
RAACLend
Said revenue is generated from the sources described in this section, below.
RAAC takes a 10% fee on the interest paid by borrowers. The same 10% fee will be deducted from the interest paid by borrowers, such that lenders will receive a net return equal to 90% of the interest paid by borrowers.
Borrowers can guard their REET NFT collateral from instant liquidation (get 72 hours to repay their loan after the liquidation threshold is reached) for a fee equal to 3% of their loan.
Deploying to a lending vault is subject to a 0.05% fee on deployment. Minting fees may be subject to change in the future.
There are no fees to open a vault to borrow.
RAAC receives a 2.5% fee on liquidations by receiving 2.5% of index tokens minted during the liquidation process. The fees are sent to the RAAC Treasury.
RWf(x)
The RAAC Treasury receives 10% of each silo’s COD tokens, representing 10% of the RWA backing and 10% of RWA off-chain yield. Additionally, the RAAC Treasury receives 40% of on-chain yield generated by a silo’s treasury-backed stablecoin.
A 2% mint fee is charged and distributed between ecosystem partners.
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