Revault protocol upgrade
Stressful times to be a crypto player these days, but as we all know our space works in cycles. To quote Crypto.com’s commercial: Fortune favors the brave
Many changes were recently made in our platform, all with the single point in mind of growing our product ever stronger and supporting the utility of $REVA. To be totally honest, we see these upgrades as the fulfillment of our original vision when we set out with Revault — Creating a community-driven Go-to platform for all Defi players.
This article will try to resolve some of the confusion in the community regarding the protocol updates we released. The confusion is normal, as although we produce a one-click solution for maximizing yields, under the hood, the technology and architecture we are using are far from being simple.
Writing these lines, Revault produces the best APY on BSC, and as you will shortly see, during 2022 this bold statement will hopefully be true for all EVM compatible blockchains out there.
January Product upgrades
- Enforcing the TVL reward 100X multiplier — During our Beta stage, we noticed a lot of whales diverting their bags to Revault to maximize their APYs on the assets we support. Although this is a great vote of confidence and a sign we reached product-market fit, it ended up hurting our token and core community since many of these whales dumped their $REVA immediately after. The 100 multiplier is used to force only these whales to hold a significant amount of $REVA in order to enjoy what our platform has to offer and can be further adjusted any time by a DAO vote.
Therefore, and thanks to great research and feedback made by our community member Boink, we have now implemented a new mechanism according to which one must hold $REVA in order to gain $REVA TVL rewards. Users’ dollar worth TVL eligibility will be capped at 100X their $REVA holdings. All surplus TVL rewards will be now burnt.
Marty holds 500 $REVA and supplies USD $100,000 worth of TVL through Revault. Marty will enjoy TVL eligibility of only up to USD $50,000 (500X100). This means, half of the REVA TVL rewards will go to Marty and the other half will be burned. To gain 100% of the rewards, Marty will have to hold 500 more $REVA.
2. Halving $REVA emission rate to now stand on 0.35 $REVA — The emission is the rate at which new $REVA is minted to the market. With each new BSC block being signed, more $REVA enters into circulation. Halving the emission from 0.7 $REVA per block to 0.35 was actually the plan from the get-go. Although reducing the nominal APY on the platform, we strongly believe this change will do great to $REVA value by reducing its inflation. Assuming $REVA price will appreciate, the APY $ value should remain the same if not get increased.
3. Increase transaction tax rate from 0.25% to 0.5% — Taxes are meant to create a direct relation between volume and protocol value appreciation by distributing fees to the protocol revenue stream and helping strengthen the $REVA price by burning and reducing the original 18,181,818 MAX supply. Revault tax adds an important deflationary dimension to the project, and with 11,363 $REVA burnt to date, the max supply currently stands at 18,170,182.
4. Select Vault Feature — Up until now you could only deposit your funds into the best performing vault at any point in time. Effective from next week, we are opening the option for you to deposit your assets in any vault you desire.
Our Tokenomics are agile and alive. The more community members and feedback we will receive the better our project will take shape matching the super fast-evolving DeFi space. Although the changes above reduce the staking APY on the platform, we are positive it will strengthen our token and along with further implementations we are currently working on, will reward those who are highly involved and hold $REVA.
We hope this article helps you better understand. If not, feel free to reach us on our community channels. By all means, keep bringing these valuable points to us, we absolutely love them!