# About RAAC ## RAAC: Real-World Assets, Onchain Finance Real Asset Acquisition Corp (RAAC) is a decentralized finance (DeFi) protocol powered by real-world assets (RWAs). The ecosystem empowers token holders through a set of custom-built products to tokenize real-world assets (RWAs), deploying traditional finance (TradFi) assets into DeFi to unlock liquidity and on-chain yield opportunities. This model allows RAAC to systematically expand DeFi liquidity backed by tokenized RWAs. The global financial system has long been fragmented between traditional finance (TradFi) and decentralized finance (DeFi). Traditional asset markets such as real estate and commodities represent trillions in locked value. However,these assets are slow to settle, heavily intermediated, and often restricted by jurisdictional and regulatory barriers. DeFi, by contrast, has the potential to offer near-instant liquidity, composability, and global accessibility. However, DeFi currently lacks stable value and predictable yield opportunities. Most DeFi yield mechanisms depend on speculative token emissions or volatile crypto assets, which hinder mainstream institutional participation. RAAC identifies this inefficiency as the core problem: Real-world value remains siloed off-chain, while on-chain liquidity lacks stable collateral. By tokenizing RWAs, the RAAC ecosystem can potentially create a bridge between these two worlds - enabling traditional asset holders to unlock liquidity and enabling DeFi participants to access yield-generating, RWA-backed instruments. RAAC has two core product offerings that are intended to produce asymmetric liquidity and yield opportunities within the larger DeFi Ecosystem. {% columns %} {% column %} **RAACLend** Tokenized RWAs via NFT (e.g., real-estate), that can be held for exposure or borrowed against for $crvUSD. {% endcolumn %} {% column %} **RWf(x)** Tokenized RWAs (e.g., precious metals), used as collateral to mint a CDP stablecoin, then deployed to earn yield. {% endcolumn %} {% endcolumns %} RAAC anticipates that these systems in combination may provide a positive feedback loop that bolsters sustainable on-chain liquidity, asymmetric yield, and RAACs ability to perpetuate its on-chain system. The team is developing the RAAC protocol with intention to build in the features/characteristics described throughout the white paper. However, the protocol is subject to change. # Litepaper Coming soon. For a detailed look into each of RAAC's components, check out the [**LEARN**](/learn/overview) section. # Contributors ## RAAC is supported by a diverse group of experienced individuals across DeFi and traditional finance #### RAAC Core Team * [KKrusher](https://x.com/kkrusherr): CEO & Founder. Full-time Llama LARP, Chainlink build member * [MD](https://x.com/mikedemelo4): Head of DeFi. 27 years TradFi veteran who worked with leading financial advisors helping retail investors navigate their portfolio decisions. 8 years in crypto * [Philip Monk](https://x.com/phonkmonk_r): Lead Engineer * Walden Wolfman: Senior Developer * Ivan Otono: Lead Security Researcher & Auditor * Rozales Assimpah: Smart Contract Developer * Mike Bridges: Operations * Ricky Banda: Software Engineer * Chris Hamer: Chief of Staff. Ex. Chainlink, Metamask * Maximillian Zuntz: Real Estate Treasury Manager *** #### TAU Labs TAU Labs designs and structures complex economic systems, including mechanism design, economic modeling, and tokenomics. TAU has serviced 15+ projects with a focus on DeFi, specifically lending and borrowing. TAU has been working with the RAAC team to build the protocol from the ground up and will monitor and optimize RAAC's economic health. *** #### Advisors & Partners * [Michael Egorov](https://x.com/newmichwill): Inventor of Curve Finance and yieldbasis * [The Llamas](https://www.thellamas.io/) * [Chainlink](https://chain.link/) * [Circle](https://www.circle.com/) * [Instruxi](https://www.instruxi.io/) * [ION Digital Corp.](https://iondigitalcorp.com/) * [Fx Protocol](https://fx.aladdin.club/) * [IPOR](https://www.ipor.io/) * [CLever](https://clever.aladdin.club/clever/) * [Pashov Audit Group](https://www.pashov.com/) * [zkMe](https://zk.me/) * [Llama Airforce](https://llama.airforce/) * [RWA Federation](https://www.therwaf.io/) # Links ## DApp * Mainnet (coming soon) * [Testnet](https://testnet.raac.io/) ## Socials * [Twitter](https://x.com/regnumaurum) * [Discord](https://discord.gg/raac) * [LinkedIn](https://www.linkedin.com/company/raac-io/posts/?feedView=all) ## Code * [GitHub](https://github.com/RegnumAurumAcquisitionCorp) * [Technical Docs](https://docs.raac.io/) ## Assets * [$pmUSD](https://pmusd.raac.io/) * [RAAC Bots NFT](https://etherscan.io/address/0xb9358522d0e010cd37b3ceff189d1e61de4d76a7) * $RAAC (coming soon) * $iREET (coming soon) # Overview ## Step 1: RWA Tokenization In the first step, RAAC helps RWA asset owners tokenize their assets onchain.
REET NFTs RAAC tokenizes real estate by creating a REET NFT representing a contractual right to a specific property. REETs NFTs may be traded on third-party marketplaces and eligible holders may also redeem the NFT to exercise its contractual right to title to the off-chain real estate.
iREET The REET Index, or iREET, allows users to gain exposure to the performance of real estate markets without purchasing a full REET NFT.
RWf(x) RWf(x) stablecoin silos operated by third parties allow RAAC to bring RWA assets on-chain. Each independent silo is a self‑contained vault that tokenizes a single asset class. Examples could include: gold, farmland, oil, data, water, etc. Independent silos mint a branded stablecoin (e.g., pmUSD) against the asset.
## Step 2: Unlocking Yield Once RWAs are tokenized, holders may unlock their latent liquidity and earn onchain yield.
RAACLend REET NFTs and iREET tokens can be used as collateral to borrow crvUSD from the RAAC lending pool. The interest rate for borrowers is soft-pegged to $$\frac{USPrimeRate}{2}$$, ensuring the rate for borrowers is always competitive. $RAAC emissions may be used to bolster the interest rate dependent on gauge votes directed by token holders. Additionally, stability pool depositors may receive a part of rental income through the secondary gauge managed by veRAAC holders. Stability pool depositors who handle liquidations and are first in line in case of bad debt.
# Protocol Economics & Fees This section details the various fees and revenue streams going to RAAC and other parties. ## Tokenization & RWA Index {% tabs %} {% tab title="Rental Income" %} 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). {% endtab %} {% tab title="Royalty Fees" %} Trades on REET NFTs are subject to a 2% royalty fee on every trade, which is distributed as follows: * 0.5% to $veRAAC holders * 0.5% to Protocol Services * 1% to RAAC’s Treasury {% endtab %} {% tab title="$iREET Minting Fee" %} Whenever a user adds a REET NFT to the RWA Index, 2% of the minted $iREET is allocated to the RAAC Treasury. {% endtab %} {% tab title="$iREET Token Tax" %} $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 {% endtab %} {% endtabs %} *** ## RAACLend {% hint style="info" %} All revenues from the RAAC money market (DeFi platform revenue) are split in the following way: * 80% $veRAAC holders * 20% RAAC Treasury {% endhint %} Said revenue is generated from the sources described in this section, below. {% tabs %} {% tab title="Interest Rate Spread" %} 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. {% endtab %} {% tab title="Liquidation Guard Fees" %} 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. {% endtab %} {% tab title="Mint Fees" %} Deploying to a lending vault is subject to a 0.05% fee on deployment. Minting fees may be subject to change in the future. {% endtab %} {% tab title="Vault Fees" %} There are no fees to open a vault to borrow. {% endtab %} {% tab title="Liquidation Fees" %} 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. {% endtab %} {% endtabs %} *** ## 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. # Repair & Maintenance Fund The RAAC Treasury is obligated to fill the Repair & Maintenance Fund (R\&M Fund) up to a target threshold. The target threshold is a percentage of total real estate assets under management by RAAC, weighted by the real estates’ risk profile to account for the probability and size of required repairs. For example, Housing Choice Voucher Program properties are more risky and might require repairs worth a couple of monthly rents every year. $$ RM Target Size = a × \sum\_{i}^{n} (Value\_{i} ×weight\_{Risk\_{i}}) $$ > *with*\ > *i: real estate object*\ > *a: base percentage of AUM that should go to the R\&M Fund* ## Parameters At launch, RAAC will use the following parameters: | Base Percentage | | | --------------- | ----- | | a | 2.50% | | Risk Score | Weight | | ------------------------------------------------- | ------ | | 1 (e.g. Prime housing) | 1 | | 2 | 1.5 | | 3 (e.g.Housing Choice Voucher Program properties) | 2 | {% hint style="info" %} Until the target size is hit, 70% of the treasury’s USD fund are allocated to the R\&M Fund, 30% remain in the treasury for other use. {% endhint %} # Production Suite Learn about RAAC's products and how they work together {% content-ref url="/pages/q2cSOaF5zeGvZELlWHiw" %} [RAACLend | RWA Tokenization & Index](/learn/production-suite/raaclend-or-rwa-tokenization-and-index) {% endcontent-ref %} {% content-ref url="/pages/cuo6M0sPPCYieY51Mvkt" %} [RWf(x) | A CDP stablecoin silo system](/learn/production-suite/rwf-x-or-a-cdp-stablecoin-silo-system) {% endcontent-ref %} # RAACLend | RWA Tokenization & Index
## RWA Tokenization RAAC has legal title to real estate. It then tokenizes the real estate by creating a REET NFT representing a contractual right to a specific property. REET NFT holders may use their REET NFT (or $iREET, as described below) as collateral to borrow crvUSD. They can use the crvUSD to earn rental yield or an equivalent by placing tokens (DEcrvUSD and RcrvUSD) into the liquidity pool as shown in the main value flow diagram below. REET NFTs may be traded on third-party marketplaces. Eligible REET NFT holders may also redeem their REET NFT to exercise its contractual right to title to the off-chain real estate by burning the REET NFT and starting the redemption process. $iREET holders may also redeem their tokens for REET NFTs or other RWA tokens using the process described below (see [Redemptions](#redemptions)). To bootstrap the system, RAAC maintains the initial real-world real estate underpinning the REET NFTs through continued replenishment of a Repair & Maintenance Fund. RAAC is responsible for expenses such as property management, maintenance, repair, insurance, taxes, and property filings. 80% of any rental income earned from tokenized real estate, will be deposited in RAAC’s secondary gauges, as described below. 20% will be paid to the Regnum Aurum Acquisition Corp., but this allocation may be modified via governance at a later date. *** ## RWA Index The REET Index, or iREET, allows users to gain exposure to the performance of real estate markets without purchasing a full REET NFT. iREET allows REET NFT holders to deposit a REET NFT and receive iREET Tokens ($iREET) of equivalent value. RAAC may also contribute REET NFTs from its own holdings to the iREET. $iREET tokens reference the notional USD value of the iREET , which is the current value of the underlying pool of real estate-linked assets. $iREET tokens can be redeemed for REET NFTs (see: [Redemptions](#redemptions)) When a used deposits a REET NFT, the user receives $iREET tokens based on the following formula:


\frac{NFTvalue}{Index Value Based On NAV}

RAAC charges a 2% minting fee denominated in $iREET tokens, which are sent to the RAAC treasury. The value of underlying real estate is determined by a regular market assessment for each property. Rental yield, if any, associated with $iREET tokens accrues to the RWA gauge directed by $veRAAC holders. The RWA index may receive rental yield from the RWA gauge. This way, rental yield is retained in the index, increasing Net Asset Value (NAV), and is used to expand the index’s exposure. This yield is net of: * A fee for the RAAC Treasury * A fee for accruing protocol-owned liquidity within RAAC. Holders may redeem $iREET tokens for an available REET NFT, selected at random from the iREET (see: Redemptions). $iREET tokens can also be used as collateral on RAAC to borrow crvUSD. This adds further velocity, helps align index token prices closer to NAV. The index token price will start at $1 but may fluctuate based on NAV. > **Example**\ > Real estate worth $1,000,000 is added to the index at an index token price of $1. Therefore, 1,000,000 index tokens are issued. One year later, the notional value of the real estate exposure in the index is $1,100,000. With 1,000,000 index tokens in circulation, the price is $1.10. ### Redemptions The iREET system uses a randomized redemption queue where users know which REET NFT is next in line if index tokens are submitted for redemption. Users cannot select a specific property for redemption. If no redemption occurs within 72 hours, the next REET NFT is randomly selected for redemption. To unlock the REET NFT, users must redeem $iREET tokens. The number of $iREET tokens required to unlock the REET NFT is:

\frac{NFTvalue}{Index Value Based On NAV}

# RAAC Lending Infrastructure Click on the mechanism you want to learn more about:
Interest Rate Framework/pages/2PNQQ2RLsEzuntJ5CIHV
Stability Pool/pages/oHdl3plXluIEBRcCDqRD
Liquidations/pages/eW9sR53rw6MQxwYZwuNU
# Interest Rate Framework RAAC utilizes a discounted interest rate model which tracks the US Prime Rate. Specifically, below the target rate, borrowers pay half of the US Prime Rate. Above the utilization rate target, a penalty interest is introduced which scales linearly with the distance to the target utilization. This provides an incentive for borrowers to repay their loan and allows lenders to withdraw funds, ensuring liquidity *** #### Borrow Rate The borrow rate ($$R\_b$$) is calculated as follows: $$ R\_b​=R\_b^{target}​+max(u ​× (U - U\_T),0) $$ > *with:* > > * $$R\_b$$*: borrow rate* > * $$R\_b^{target}$$*: target borrow rate (½ US Prime Rate)* > * $$U$$*: Utilization* > * $$U\_T$$*: Target Utilization* > * $$u$$*: utilization penalty factor* #### Supply Rate The supply APR ($$R\_s$$) is calculated from the borrow interest paid by borrowers, minus a reserve factor which constitutes a protocol fee. $$ R\_s​=R\_b​ ​× U × (1-RF) $$ > *with:* > > * $$R\_s$$*: supply rate* > * $$R\_b$$*: borrow rate* > * $$U$$*: Utilization* > * $$RF$$*: Reserve Factor*
{% columns %} {% column valign="middle" %} [Stability pool](/learn/production-suite/raaclend-or-rwa-tokenization-and-index/raac-lending-infrastructure/stability-pool) depositors may earn up to 80% of the rental income of the borrower’s collateral, whether REET NFTs or $iREET, as decided by $veRAAC holders via the secondary gauge. Furthermore, idle crvUSD supply is deposited into Savings crvUSD (scrvUSD) on Curve to earn yield. {% endcolumn %} {% column valign="middle" %} That gives the following total lending APR: $$ R\_s​=R\_b​ ​× U × (1-RF)+\frac{I\_r\times U}{LTV} $$ where $$ I\_r​=\alpha\times RentalYieldAPR $$ $$ LTV=\frac{Borrows}{CollateralValue} $$ ```latex \alpha: max percentage of rental income earmarked for distribution to lenders ``` {% endcolumn %} {% endcolumns %} ## Parameters Currently, the following parameters are implemented: | Parameter | Value | | ---------------------------- | ----- | | Target Utilization | 80% | | utilization penalty factor u | 4 | | Reserve Factor | 10% | # Stability Pool When deploying crvUSD, lenders receive a receipt token called RcrvUSD. RcrvUSD can be deployed into the stability pool LP (RcrvUSD/DecrvUSD) to earn additional yield distributed by veRAAC holders through the second gauge. {% hint style="info" %} Note: DecrvUSD is the receipt token of RcrvUSD when deploying into the stability module. RcrvUSD and DecrvUSD are paired to make up the stability pool LP. {% endhint %} In return for higher yields, stability pool depositors accept but higher risk in the event of bad debt. The stability pool comes with a 14 day withdrawal window. Depositors send a withdrawal request, wait for the withdrawal window, and then have 72 hours to claim their withdrawn funds. If a user misses the claiming window, a new request is required. # Liquidations
## Health Factor Liquidations are determined by the borrower’s health factor, which is calculated using the following formula: $$ Health Factor = \frac{Collateral Value \times Weighted Average Liquidation Threshold}{Borrow Value} $$ > **Example**\ > Liquidation threshold: 50% > > Collateral: $100,000 > > Borrow position: $40,000 > > → Health factor = ($100,000 \* 50%) / $40,000 = 1.25 When a borrower’s debt position falls below a health factor of 1, it enters the liquidation process. Liquidations on RAAC work differently than traditional DeFi lending protocols due to the borrower’s collateral being $iREET instead of a fungible token with a liquidity pool. The liquidation threshold is set per RWA collateral asset, based on its risk profile. The liquidation threshold acts as a buffer to prevent bad debt from accumulating in the RAAC ecosystem.
*** ## Liquidation Process A borrower’s RWA collateral value (in crvUSD) is updated regularly based on Chainlink price feeds and an off-chain evaluation twice a year. When a borrower’s health factor falls below 1, a liquidation event is triggered {% hint style="info" %} If the borrower took out an optional Liquidation Guard, the borrower may repay their loan within 72 hours to avoid liquidation. {% endhint %} {% stepper %} {% step %} ### REET NFT Transfer Upon liquidation, the stability pool pays the bad debt to make the lending pool whole. The stability pool receives the REET NFT. {% endstep %} {% step %} ### iREET deposit & usage The stability pool then deposits the RWA NFT into the RWA index, receiving $iREET index tokens in exchange. $iREET is used as follows: * 75% are swapped to crvUSD via the $iREET/crvUSD LP and used to reimburse the stability pool Given the 60% LLTV, the reward would be \~15% dependent upon the price impact of the swap * 20% is distributed to $iREET/crvUSD LPs as a reward * 2.5% is allocated to the RAAC treasury as a protocol fee * 2.5% is burned, accruing value to the RWA index, and therefore $iREET holders {% endstep %} {% endstepper %} If the $iREET/crvUSD liquidity is insufficient to repay the entire crvUSD debt, the DecrvUSD stability module will socialize the loss within the stability module. The RcrvUSD deployed in the stability module is burned to make the system whole. The borrower keeps their loaned crvUSD but loses ownership of the REET NFT, realizing a loss of $$collateral value - borrowed amount$$ The whole debt position is liquidated. > In a worst case scenario, when the liquidation of the collateral cannot happen due to an insufficient stability pool and $iREET-crvUSD liquidity pool, the liquidation is reverted. The position will stay under liquidation, the protocol is paused to prevent malicious withdrawals, and the required capital is sourced to enable an efficient liquidation. ## Parameters Currently, the following parameters are implemented: | Parameter | Value | | --------- | ----- | | LLTV | 60% | | Max LTV | 50% | # RWf(x) | A CDP stablecoin silo system
RWf(x) stablecoin silos operated by third parties allow RAAC to bring RWA assets on-chain. Each independent silo is a self‑contained vault that tokenizes a single asset class. Examples could include: gold, farmland, oil, data, water, etc. Independent silos mint a branded stablecoin (e.g., pmUSD) against the asset deployed and deploys it into RAAC products and other DeFi protocols to support RAAC’s growth and earn yield. Silos are backed by an asset which is tokenized via an RWA token (e.g. gold). The RWA token is deployed into the silo treasury which mints a COD token, representing a share of the treasury. Over time, the treasury earns yield and may take in other assets beside the RWA token. Silos can decide to sell COD tokens to raise cash. 50 % of net on-chain yield and 100% of off-chain yield generated by Treasury assets is paid pro‑rata to COD holders. Each vault is isolated in underlying asset risk. For example, if the precious metals silo suffers a black swan event, the metals and agriculture silos are not impacted because assets and liabilities are legally and organizationally firewalled. > RAAC captures upside through yield sharing, and acts as the coordination layer for all silos, awarding a programmable stream of emissions in return for 40% yield sharing on on-chain yields and 10% RWA asset ownership, thereby receiving 10% of off-chain yields. To start, these yields accrue to the RAAC Treasury. ### pmUSD pmUSD, short for precious metals USD, is a synthetic stablecoin backed by tokenized in-situ gold reserves. RAAC’s tokenization partner is I-ON Digital Corp. which offers fully audited, compliant, and secure gold tokenization. In-situ gold reserves are discounted by 80% from the real-time spot gold price, resulting in a reserve ratio of 5:1. These discounted gold reserves back pmUSD. RAAC uses an official [f(x) Protocol](https://fxprotocol.gitbook.io/fx-docs/) 1.0 fork for its stablecoin creation. The 1x net long gold position is split into the stablecoin pmUSD and a leveraged xGOLD position which eats all the volatility. For more info please refer to the [f(x) protocol documentation](https://fxprotocol.gitbook.io/fx-docs/). The change to f(x) protocol is that RAAC internalizes the xGOLD position instead of offering leveraged gold exposure to the public. # $RAAC Token $RAAC is RAAC’s ecosystem token, managing and coordinating its various components including RWf(x), RAACLend index, as well as $RAAC distributions. RAAC uses a ve (vote escrow) token model to align token holders with the protocol. Lockers receive a pro rata share of value captured by RAAC based on their $veRAAC token holdings. This may include: * 80% of RAACLend revenue * 0.5% take rate on REET NFTs and $iREET trading volume (a share of the total token tax and royalty fees) * Voting incentives for primary and secondary gauge emissions * Further value share from the RAAC Treasury (see section “[Protocol Economics & Fees](/learn/overview/protocol-economics-and-fees)”) if such allocation is deemed effective use of capital # Tokenomics {% hint style="info" %} Total Supply: 21,000,000 {% endhint %} ## Allocations
41.92% of supply is allocated for the ecosystem. Ecosystem token distributions follow a fixed schedule and their destination is decided by $veRAAC holders (see section “[Ecosystem Token Distribution](/learn/usdraac-token/tokenomics/ecosystem-token-distribution)”).
The treasury is used to seed multiple key components of the RAAC system, including DEX LPs and leRAAC’s maturity vault. More details, such as exact allocations across LPs, will be published. For the required flexibility, the treasury has to be unlocked at day one as showcased by the vesting schedule. The RAAC team will not sell any RAAC from the treasury allocation. *** ## Emissions
As explained throughout this section and the [next section](/learn/usdraac-token/tokenomics/ecosystem-token-distribution), not all emitted RAAC will be liquid as emissions are making use of leRAAC and veRAAC, locked versions of RAAC. # Ecosystem Token Distribution 41.92% of total $RAAC supply is earmarked for the ecosystem. Ecosystem distributions are done in $leRAAC. $leRAAC is RAAC’s fork of [Clever’s clevCVX](https://docs.aladdin.club/clever), a wrapper for [$veRAAC](/learn/usdraac-token/usdveraac). $leRAAC is described in more detail in the [$leRAAC section](/learn/usdraac-token/usdleraac). * The amount of $RAAC, underlying the $leRAAC, emitted per week is set upfront on a decaying schedule. * The first 104 weeks, emissions remain constant * Afterwards, they are reduced by 5% every 13 weeks, which sums up to approximately a 18.55% reduction per year * Emissions run for a total of 780 weeks. This results in the following emissions schedule:
Ecosystem distributions are frontloaded to kickstart protocol and treasury growth while providing a long-tail of emissions, giving RAAC time to become self-sustaining. After year 1, 15.58% of ecosystem tokens are distributed, 31.15% after year 2, and 44.88% after year 3. $veRAAC holders decide where ecosystem distributions flow. $RAAC emissions are allocated to [gauges](/learn/usdraac-token/tokenomics/gauges) based on the percentage of weekly votes gauges receive. {% hint style="info" %} The actual circulating supply depends on multiple factors, including how $leRAAC holders use the mechanics, $veRAAC yield and $RAAC price, and therefore cannot be determined upfront. {% endhint %} # Gauges RAAC features a dual gauge system, with one gauge for $RAAC ecosystem distributions and another for the distribution of RWA yield, such as rental income from onboarded real estate. ## Primary gauge
$RAAC ecosystem distributions flow to users who stake their LP (Liquidity Provider) tokens in Gauges to decentralize ownership of RAAC to its users. Each staker receives $leRAAC emissions proportional to their share of total value staked in the gauge. $$ Weekly Distribution\_{i.j} = Weekly Gauge Distribution\_j \times \frac{TokensStakedInGauge\_{i,j}}{\sum\_{i}^{n}TokensStakedInGauge\_{i,j}} $$ > with i: staker, j: gauge For a gauge to receive $RAAC ecosystem distributions, the DAO must approve the gauge. More details can be found in the [governance section](/learn/usdraac-token/usdveraac/governance). Gauges may include: * RAAC Core stability pool (RcrvUSD/DEcrvUSD LP) * $iREET/crvUSD LP * Silo stablecoin LPs \ The total amount of $leRAAC ecosystem distributions a gauge receives is decided weekly by $veRAAC holders. Every week, a fixed amount of $leRAAC ecosystem tokens are distributed. The emission schedule can be found [here](/learn/usdraac-token/tokenomics/ecosystem-token-distribution). The share of weekly $leRAAC ecosystem tokens per gauge (gauge weight) is determined by its share of total $veRAAC votes that week. While votes are held weekly, $RAAC distributions are done daily. $$ Weekly Gauge Distribution\_j = Gauge Weight\_j×Weekly $leRAAC Emissions $$ $$ Gauge Weight\_j = \frac{$veRAAC votes\_j}{\sum\_{j}^{m}$veRAAC votes\_j} $$ Gauge weights are updated every Wednesday 00:00 UTC. *** ## Secondary Gauge TThe secondary gauge distributes RWA yield, such as rental income from real estate managed by RAAC and silo yields. RAAC RWA yield flows to the pools underlying the RWA gauges in proportion to the gauge’s share of total votes. For a gauge to receive RWA yield, the token holders must approve the gauge. More details can be found in the [governance section](/learn/usdraac-token/usdveraac/governance). Gauges may include: * RAAC core pools (RcrvUSD/DEcrvUSD liquidity pools and $iREET/crvUSD liquidity pools) * Auto-compounders * Token purchases The total amount a gauge receives is decided monthly by $veRAAC holders. Every 4 weeks, a fixed amount of RWA income investments are made by the RAAC treasury. The share of monthly RWA yield per gauge (gauge weight) is determined by its share of total $veRAAC votes that month. $$ Monthly Gauge Investments\_j = Gauge weight\_j×Monthly RWA Income Investments $$ $$ Gauge Weight\_j = \frac{$veRAAC votes\_j}{\sum\_{j}^{m}$veRAAC votes\_j} $$ Gauge weights are updated every weeks 00:00 UTC. *** ## RAAC Bonds Rather than a one-time public sale, RAAC will run a bond program that lets the public acquire the token at a fair market price. More details will be published in the future before the token goes live. *** ## Auto-Compounders RAAC provides auto-compounders and vaults built by [LlamaAirforce](https://llama.airforce/) for RAAC-related stablecoin LP positions on Curve, such as Silo stablecoins and crvUSD. The auto-compunders maximize yield from fees and gauge rewards and automatically convert yield into LP positions for compounding interest. The RAAC Treasury takes a 20% performance fee on auto-compounder yield which is captured in CVX/CRV to increase RAAC’s voting weight in future CRV emissions. # $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: $$ $veRAAC = $RAAC × \frac{lockup Period}{365 days} $$ > **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](/learn/usdraac-token/usdveraac/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. $$ Gauge Weight\_j = \frac{$veRAAC votes\_j}{\sum\_{j}^{m}$veRAAC votes\_j} $$
*** ## 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). # Utility $veRAAC holders govern the protocol, direct value flows, and benefit from revenue sharing. They receive: * 80% of platform fees and 25% of both REET NFT royalties and $RAAC token tax (described in more detail in the “[Protocol Economics & Fees](/learn/overview/protocol-economics-and-fees)” section) * Direct $RAAC ecosystem distributions and RWA yield via a dual gauge system. * Boosted emissions * Governance rights As RAAC expands, $veRAAC holders will participate in every vertical. Revenue from all RWAs tokenized in the RAAC ecosystem, whether from silos or RAACLend, will flow to RAAC. # Governance RAAC is operated and governed by the community. Token holders have governance power proportional to their deposits, where 1 $veRAAC equals 1 vote. Governance is used to vote on key decisions, such as: * Protocol parameters * Addition of new gauges ## **Governance Process** {% stepper %} {% step %} ### Forum Discussion Before an official proposal is made, proposers may submit an initial outline of their proposal to the governance forum for discussion. This will make it easier for voters to understand the proposal and increases the likelihood of tokenholders participating in governance. Anyone can create a new forum proposal. {% endstep %} {% step %} ### Formal DAO Proposal The governance proposal is then formally submitted for a token vote. While anyone can create a forum proposal, only token holders with at least 120 $veRAAC (0.01% of circulating supply at TGE) can send a proposal for a token vote. After the proposal is submitted, there is a 3-day proposal review period. During this time, interested parties can read up on changes, hold discussions, and gather support. {% endstep %} {% step %} ### Voting Process Token holders and delegates vote off-chain via Snapshot. Token holders are allocated 1 vote per 1 $veRAAC. Token holders can delegate their votes, allowing community members to assign their voting power to other token holders who vote on their behalf. Voting will remain open for 14 days, and will be extended by 3 days in case of a late quorum. For example, if a voter causes a proposal to reach quorum right before the end of the voting period, the voting period is extended by 3 days. **Types of voting decisions**\ There are two types of decisions, depending on the potential impact of the vote. Major decisions require a simple majority (51%) a quorum of 15%, minor decisions a simple majority and a 10% quorum. Major Decisions: * Protocol parameters * Changes to Governance Minor Decisions: * Addition of new gauges Abstentions count toward the quorum but are not considered in the majority calculation. {% endstep %} {% step %} ### Execution If a token vote proposal has passed, a 3-day waiting period is initiated, allowing users who object to the result to withdraw funds or take other actions to preserve their interests. The proposal is then executed by the security council. {% endstep %} {% endstepper %} *** ## **Security Council** The security council is made up of five individuals, each holding a key for a 5-member multisig that requires a 3-of-5 approval for implementing proposals, and 2-of-3 for emergency fixes. The security council implements passed proposals. The security council can also respond quickly to address critical risks that are too urgent to be left to the ordinary proposal process. If required, it can take emergency actions without the need for a vote. Emergency actions include addressing critical security vulnerabilities that put user funds at risk or could damage the integrity of the protocol. The initial security council members were selected by the RAAC team according to their qualifications, including experience in risk management, experience in blockchain security, and knowledge of the RAAC Ecosystem. The security council may include members both inside and outside the RAAC team. # $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
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.
*** ## 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.