$leRAAC

$leRAAC is RAAC’s fork of Clever’s clevCVX, a wrapper for $veRAAC. $leRAAC is intended to be a self-repaying, non-liquidating loan against $veRAAC which is locked for the maximum duration of one year.

Benefits

Incentive alignment

Instead of distributing liquid $RAAC, the underlying of $leRAAC is $veRAAC. This makes incentives most attractive to believers in RAAC. Additionally, the price impact of sell pressure on $RAAC is reduced.

Direct rewards

$leRAAC allows token holders to claim future $veRAAC yields which can be used instantly. Recipients essentially receive $veRAAC and a self-repaying, non-liquidating loan that is paid off by $veRAAC yield.

Governance power

The underlying $veRAAC is used by the protocol during gauge voting to maximize rewards and protocol health. Governance power remains in the hands of leRAAC holders.

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How it works

1. Users receive $leRAAC at 50% LTV of the underlying $veRAAC from the ecosystem distribution.

2. The yield of the underlying $veRAAC pays off the user’s debt.

3. After the debt has been paid back, the user can unlock the underlying $veRAAC after the 12-month lockup period.

Users may:

Strategy 1

Deploy $leRAAC in the Maturity Vault to receive $RAAC over time as debt is paid back, determined by the $veRAAC yield and total deposits in the vault

Strategy 2

Strategy 3

Strategy 4

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Maturity Vault

Participants in the RAAC ecosystem who have acquired $leRAAC may deposit those tokens in the Maturity Vault contract to convert those $leRAAC to $RAAC tokens at a defined rate over a specific time. The rate and time period vary based on ecosystem conditions.