[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,
- Abracadabra will build a cauldron and allow users to deposit LP shares of Rage Trade’s delta neutral
Vault. - 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 → https://docs.rage.trade/4TdI-overview
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:
- Website: https://www.rage.trade/
- Docs: https://docs.rage.trade/
- Github: https://docs.rage.trade/4TdI-overview
- Discord: Rage Trade (Community)
- Twitter: Rage_Trade
Team:
This proposal has passed with absolute majority!
