RAAC’s CRV Treasury Strategy and Protocol Owned Liquidity (POL)

As RAAC continues to break new ground in the decentralized finance (DeFi) space, we are implementing a forward-thinking approach to managing our treasury and liquidity. This strategy leverages our $CRV and $CVX assets and integrates Protocol Owned Liquidity (POL) to ensure long-term stability and sustainability. In this post, we’ll walk through how RAAC’s innovative approach drives growth and ensures a sustainable ecosystem for all of DeFi.

Achieving Terminal Velocity: RAAC’s Road to Self-Sustainability

In RAAC’s ecosystem, "Terminal Velocity" is the point at which the real estate holdings generate enough Rental Income Emissions to acquire a new property every month. This milestone—roughly 150+ properties—represents a critical phase of self-sustainability for RAAC. Once achieved, the Rental Income Emissions will be directed toward acquiring Protocol Owned Liquidity (POL), a move that further secures RAAC’s long-term stability.

Until this Terminal Velocity is reached, RAAC will be using the Rental Income Emissions to purchase additional $CRV and $CVX, ensuring that sustainable emissions are maintained for the foreseeable future. This gradual build-up allows RAAC to replace Rental Income Emissions with $CRV and $RAAC emissions, helping to extend the use of $CRV and $RAAC emissions to replace Rental Income Emissions indefinitely.

Maximizing CRV Voting Power for RAAC/ETH Liquidity

RAAC has designed its treasury strategy to optimize the use of $CRV voting power, ensuring that no excess voting power goes to waste. By directing any unused voting power toward the $RAAC/$ETH liquidity pool (LP), RAAC is able to bolster the liquidity of the $RAAC token while simultaneously increasing $CRV rewards for the treasury.

The result is a stronger treasury and a more sustainable token ecosystem, as higher emissions as a byproduct attract more liquidity and enhance market stability.

Controlled APY for RcrvUSD/DEcrvUSD Liquidity Pools

One of the hallmarks of RAAC’s strategy is its commitment to maintaining a stable and controlled APY for its Treasury Revenue through POL, particularly the RcrvUSD/DEcrvUSD LP. By controlling the liquidity levers within the ecosystem, RAAC can manage emissions carefully to prevent imbalances and ensure sustainable yield generation.

Since RAAC knows exactly how much real estate is in the system and what’s being added, onboarding of new real estate with the growth of our treasury can be timed. This ensures that emissions are always in balance, maintaining a healthy and stable yield for RAAC’s Treasury as a participant.

Second Gauge Activation: A Milestone for RAAC’s Growth

While the first RAAC emissions gauge will be available immediately, the second gauge will only activate once RAAC reaches Terminal Velocity. This second gauge will allow RAAC to direct Rental Income Emissions toward acquiring additional POL, further enhancing the liquidity and stability of the RAAC ecosystem, and the greater DeFi ecosystem.

Once the second gauge is activated, RAAC will have even more control over how emissions are used to support liquidity pools, providing protocols within our ecosystem with long-term, sustainable LP solutions.

Llama AirForce Auto-Compounders: Enhancing Curve Finance LPs

RAAC is proud to partner with Llama AirForce (LAF) to create and manage auto-compounders that are closely tied to Curve Finance liquidity pools, particularly crvUSD LPs. These auto-compounders will help maximize returns for holders of $veRAAC, enabling them to direct RAAC’s $RAAC and Rental Income Emissions to the liquidity pools of their choice.

By leveraging the predictability and sustainability of RAAC’s real-world asset (RWA) yield, protocols can benefit from POL that is continuously compounded and reinvested into their liquidity pools. This creates a win-win scenario where both RAAC and participating protocols grow in tandem, contributing to the long-term success of the broader DeFi ecosystem.

Why RAAC Prefers POL Over Traditional Incentives

In the world of DeFi, many protocols incentivize liquidity providers (LPs) by offering token rewards or emissions. However, this model can become unsustainable over time, leading to significant token dilution and treasury depletion. RAAC takes a different approach with POL, where the protocol itself owns and controls the liquidity. This strategy offers several key benefits:

Sustainability: Unlike incentive-driven models that require ongoing emissions, POL allows RAAC to reduce long-term token dilution. By owning the liquidity, RAAC doesn’t need to continuously reward external LPs, creating a more sustainable ecosystem.

Treasury Growth: POL enables RAAC to capture trading fees as profit from liquidity pools, as well as $CRV and $RAAC emissions.

Alignment of Emissions: With POL, RAAC aligns the interests of the protocol, token holders, liquidity providers, and ecosystem protocols toward long-term growth. The protocol benefits from increased treasury value, while token holders enjoy reduced inflationary pressures and Treasury Revenue distribution.

RAAC’s commitment to sustainability and stability sets it apart in the DeFi space. By leveraging $CRV voting power, controlling emissions, and focusing on POL, RAAC is building an ecosystem designed for long-term growth. As RAAC continues to compound the treasury, it will ensure that RAAC is seen as a stable and valuable governance force within the broader DeFi landscape.