> For the complete documentation index, see [llms.txt](https://gitbook.raac.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gitbook.raac.io/learn/usdraac-token/usdleraac.md).

# $leRAAC

$leRAAC is RAAC’s fork of [Clever’s clevCVX](https://docs.aladdin.club/clever). $leRAAC is intended to be a self-repaying, non-liquidating loan against $veRAAC which is locked for the maximum duration of one year.

## Benefits

<details>

<summary>Incentive alignment</summary>

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.

</details>

<details>

<summary>Direct rewards</summary>

$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.

</details>

<details>

<summary>Governance power</summary>

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.

</details>

***

## 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:

{% tabs %}
{% tab title="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
{% endtab %}

{% tab title="Strategy 2" %}
Pay back the $leRAAC loan and unlock the underlying $veRAAC (12-month lockup)
{% endtab %}

{% tab title="Strategy 3" %}
Sell leRAAC, wait for the yield to pay back the debt and then unlock the underlying $veRAAC (12-month lockup)
{% endtab %}

{% tab title="Strategy 4" %}
Trade around the $leRAAC price. For instance, users may buy discounted $leRAAC to pay back their loan more quickly and more cheaply, or buy discounted $leRAAC to deploy it in the maturity vault
{% endtab %}
{% endtabs %}

***

## 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.


---

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