$veRAAC
Overview
RAAC is built on the Curve ecosystem. crvUSD serves as the loan asset in the lending pool and $CRV/$CVX holdings are a key part of the RAAC Treasury to incentivize the RcrvUSD/DEcrvUSD stability pool and the $iREET/$crvUSD pool. Therefore, $RAAC also employs a vote-escrow (ve) token model.
$veRAAC aligns RAAC with the Curve ecosystem and creates a long-term community that fits the time horizon that’s required when engaging with TradFi/RWA.
Holders can lock their $RAAC for a minimum of 1 week up to a maximum of 1 year. Upon lockup, users receive non-transferable $veRAAC, with the given amount linearly correlated to the lockup duration:
Example
1 $RAAC locked for 1 year = 1 $veRAAC
1 $RAAC locked for 6 months = ~0.5 $veRAAC
1 $RAAC locked for 1 month = ~0.083 $veRAAC
1 $RAAC locked for 1 week = ~0.019 $veRAAC
The $veRAAC balance decreases linearly over the lockup period. At maturity, holders can claim their full $RAAC position. Users can extend their lock or add $RAAC to their existing lock at any time.
$RAAC holders must lock their tokens to receive fee sharing and participate in governance (see “utility” section). $veRAAC serves as the basis for any distribution or voting logic, meaning that a holder’s share of total $veRAAC determines their share of revenue and voting power.
Features
Multiple Locks
A user can have multiple locks with different lockup periods for the same address.
Lock Freezing
Users may freeze their locks. Frozen locks are locked for the maximum duration of 52 weeks indefinitely until unfrozen and do not decay.
Ragequit
Users may exit their lock early for a penalty, receiving less $RAAC back.
The ragequit penalty consists of two parts, one fixed and one variable, based on the remaining lockup time.
The fixed exit fee (5%) is burned
The variable exit fee (up to 50%) is allocated in the following way: 33% sent to the treasury, enabling RAAC to onboard new aligned token holders; 67% distributed to veRAAC holders linearly over 90 days, providing an incentive to remain locked
The variable exit fee decreases linearly from 50% at a remaining lockup duration of 365 days to 0% at no remaining lockup period. Including the 5% fixed exit fee, this results in the following penalties:
To prevent flash exits, governance attacks, and other malicious actions, ragequits come with a 7 days cooldown period. Upon initiating a ragequit, users must wait 7 days before receiving their funds. During this time, the ragequitting user is not entitled to the same incentives as other holders of the locked $veRAAC tokens (no governance power, no gauge voting, no token distribution).
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