Proposal to add the BTRFLY:ETH pool to the Gauge controller to enable users to assign a gauge weight and mint CRV.
Documentation: Perennial $BTRFLY Thesis - [REDACTED]
Github Page: https://github.com/redacted-cartel
Dune Analytics: Dune Analytics
Historic Price: Redacted Cartel price, BTRFLY chart, and market cap | CoinGecko
BTRFLY is the governance token of Redacted Cartel. Redacted is a complementary subDAO for OlympusDAO which aims to extend OlympusDAO’s influence among the greater DeFi ecosystem in an efficient and sustainable manner (see OIP-46). Redacted does this by controlling key governance assets including Curve ecosystem assets such as CRV and CVX, and other strategic assets such as FXS and TOKE. Redacted acquires these assets through bonding (the exchange of newly minted BTRFLY for assets), income and bribes (generated by its existing governance assets) and DAO swaps. Redacted’s tokenomics are currently based on Olympus rebase and bonding mechanics, but there are plans to move away from rebases in Redacted v2 (see our 2022 roadmap).
There are currently more than 10,000 BTRFLY holders and Redacted has a TVL of $130 million and a treasury of $60 million.
As BTRFLY is a rebase token, having adequate liquidity is important to reduce slippage and volatility. Because Redacted is deeply intertwined with Curve (through its significant CRV and CVX holdings) and because Curve factory pools are significantly more efficient than v2 type AMMs, Redacted is set on having the majority of its liquidity on Curve.
Redacted has the 2nd largest DAO CVX treasury and therefore, with a gauge on the BTRFLY:ETH Curve LP, Redacted will be able to incentivise much needed liquidity on the BTRFLY:ETH Curve LP, allowing for higher volumes in the LP and also generating fees for veCRV holders.
- Governance: Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain.
Redacted’s governance is currently off-chain using Snapshot. The multisig address is: 0xA52Fd396891E7A74b641a2Cb1A6999Fcf56B077e. Decisions relating to inflation, liquidity, partnership or DAO treasury go through a DAO vote, and then are executed by the multisig. On-chain governance will come at a later stage.
- Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.
No oracles are currently used.
- Audits: Provide links to audit reports and any relevant details about security practices.
No external audits on the current stack which is based on audited contracts from Olympus DAO. New products and implementations (e.g. Hidden Hand and Thecosomata) are currently in the process of being audited by Code 4rena.
- Centralization vectors: Is there any component of the protocol that has centralization vectors? E.g. if only 1 dev manages the project, that is a centralized vector. If price oracles need to be updated by a bot, that is a centralized vector. If liquidations are done by the protocol, that is also a centralization vector.
One centralization vector is the 4 of 7 multisig which is authorised to mint BTRFLY tokens and has control of the treasury and multisig addresses.
- Market History: Has the asset observed severe volatility? In the case of stablecoins, has it depegged? In the case of an unpegged asset, have there been extreme price change events in the past? Provide specific information about the Curve pool: how long has it been active, TVL, historical volume?
BTRFLY launched just 2 months ago. As expected for a nascent rebase token, BTRFLY has experienced significant volatility. However, Redacted is focused on bootstrapping diverse and deep liquidity in order to limit volatility and slippage. Treasury and LP diversification over time and a planned move away from rebases should help dampen volatility in the future.
The BTRFLY:ETH factory pool has been active for 5 days and was seeded with c. $4.6M by the DAO.
TVL : $3.0M
Daily volume: 600K$ (majority of volume currently goes through our BTRFLY:OHM Sushi LP)
Add gauge to BTRFLY/ETH pool?