AIP #14 - Add a Rage Trade's Delta Neutral Vault Cauldron

[RFC] - Building a Cauldron to Allow Users to Deposit LP Shares of Rage Trade’s Delta Neutral Vault

Author(s): Noodles, Viperr, and FinQuant

Summary/Scope
TL;DR

If this proposal passes,

  1. Abracadabra will build a cauldron and allow users to deposit LP shares of Rage Trade’s delta neutral
    Vault.
  2. Rage will emit $200k in vested RAGE tokens towards MIM liquidity
    a. Vested RAGE tokens will be priced at the previous round’s $40M valuation with participation
    from Primitive Ventures, DOPEX DAO, Dialectic, Genesis Block Ventures, and BizYugo (#1 on
    DeBank + #2 on DegenScore)

How does Abracadabra’s Cauldron help Rage Trade?

By building a cauldron, Abracadabra will allow our vault stakers to mint MIM against their positions and offer an option to leverage up on their yield.

Benefits for Abracadabra

  • Integration with the largest perpetual protocol on Arbitrum
  • Access to the highest yielding stable farm on Arbitrum
  • Vested Rage emissions will deepen the MIM-USDC pool

How do the Rage Trade Delta Neutral Vaults work?

Rage’s Delta Neutral Vaults turn GMX’s GLP into a stablecoin farm by hedging the ETH & BTC exposure and catering to two types of users: the risk-on users and the risk-off users.

The Risk-On Vault allows users to provide delta neutral GMX liquidity by depositing sGLP or USDC while benefiting from trader losses. The vault hedges ETH & BTC price exposure in GLP by systematically opening short positions on Aave. Additionally, the Risk-On Vault provides an extra boost in yield by auto-compounding the ETH rewards into sGLP & restaking earned esGMX.

The Risk-Off Vault has no liquidation risk or GMX risk and earns interest from lending USDC on Aave. It also earns a fraction of ETH rewards from GLP based on the amount of USDC lent to the Risk-On Vault.

Read More → Overview - Rage Trade

What were the previous rounds of valuation?

We’ve raised 2 rounds of funding at a valuation of $20M and $40M (previous round). Approximately, 12% of the total supply has been sold to investors at a 2 year linear vesting agreement.

When will the tokens be unlocked?

Vested $RAGE tokens will begin to unlock in Q1 2023. More details on the tokenomics and the token emission schedule to come out shortly.

Should we expect more governance proposals from Rage Trade in the future?

Rage Trade looks forward to this partnership with Abracadabra and hopes to maintain a long-term relationship. Pending interest of the Abracadabra community, Rage Trade is also open to the idea of a possible treasury swap in the future.

References:

Team:

This proposal has passed with absolute majority!

12 Likes

A great addition lets get this to a vote

4 Likes

Happy to see the RFC regarding Rage trade!

I talked to the team several times. They are very professional and are working on a unique solution for their delta neutral vaults!

There are a lot of great yield opportunities on Arbitrum. Abracadabra needs to maximize their position on this L2 and tap into all the great yield around GLP, including delta neutral opportunities. I believe that Rage trade can be an amazing addition towards the overall Arbitrum strategy!

I see a promising future for Abracadabra on Arbitrum, with a self repaying GLP cauldron, leveraged delta neutral cauldrons through Rage trade and a growing liquidity pool with our new friends from Camelot.

Everyone pulling on the same rope to build MIM liquidity and maximize yield around GLP!

The protocol is already attracting emissions from Camelot, I’m happy to see that Rage trade sees the value of growing our MIM liquidity as well.

With GLP yield on a high demand, it only makes sense to develop cauldrons around this yield. Rage trade is a great addition towards the overall Abracadabra: Arbitrum roadmap!

5 Likes

It look good for traders

1 Like

very solid proposal. let’s make it happen

2 Likes

It was great. Thank you team for always working for the community.

1 Like

Awesome idea!!! Very clean and organized RFC too… looking forward to welcoming Rage Trade!!! :man_mage::frog::crystal_ball:

Seems like an interesting opportunity, so much happening around GMX and GLP at the mo…

1 Like

Thats great lets get this through

1 Like

I support this proposal.

1 Like

I support this proposal as well

1 Like

Solid proposal. Let’s make it happen frens

1 Like

Supported! It is a great one. LFG🚀

1 Like

I support this idea very good project

1 Like

I support this proposal.
wagmi :grinning:

1 Like

Good, Sounds Juicy ser

1 Like

very solid proposal…

1 Like

I support this proposal!

1 Like

I support this proposal

1 Like

A great addition. :heart_eyes: :heart_eyes:
Thank you team for always working for the community.

1 Like