**Redacted** is a product suite of [smart contracts](https://iq.wiki/wiki/smart-contract) designed to provide on-chain liquidity, governance, and cash flow for [DeFi](https://iq.wiki/wiki/defi) protocols. Redacted built three products in line with this mission - Hidden Hand, Pirex, and Dinero. [\[1\]](#cite-id-z3x9mwao2q)[\[28\]](#cite-id-hp9smkvdy2l)  
  
The Redacted Cartel [DAO](https://iq.wiki/wiki/dao) builds the Redacted ecosystem. The Redacted protocol is powered by the BTRFLY token, which allows users to stake, earn incentives, and interact with governance proposals. [\[1\]](#cite-id-z3x9mwao2q)[\[3\]](#cite-id-p77tgae3p9)[\[4\]](#cite-id-6ou90pttrdd)[\[21\]](#cite-id-qam8tejwywj)$$widget0 [YOUTUBE@VID](V2VCyAefbLo)$$  
  
# Overview  
  
REDACTED incentivizes bonding tokens from the [Curve](https://iq.wiki/wiki/curve-finance) ecosystem into their treasury in exchange for the BTRFLY token. Each BTRFLY token is backed by value from the Curve ecosystem locked in the DAO treasury. BTRFLY is an [ERC20](https://iq.wiki/wiki/erc-20) token but it bridges the core components and token to whatever chains Curve scales to.[\[2\]](#cite-id-x02b39auq3)  
  
The strategies employed through bonding allow REDACTED to accumulate voting power in the Curve gauge and utilize that power to vote on behalf of minters ensuring their interests are best represented in the Curve gauge.[\[2\]](#cite-id-x02b39auq3)  
  
In addition to an aggregation of voting power, when utilizing Curve LP tokens to mint BTRFLY, users receive a maximized yield and possess a liquid token that is securely backed by stable assets. BTRFLY is primarily backed by the [stablecoin](https://iq.wiki/wiki/stablecoin) LP tokens, remaining relatively stable regardless of the market dynamics.[\[2\]](#cite-id-x02b39auq3)  
$$widget0 [YOUTUBE@VID](6iXhqKx9aIA)$$  
  
# Products  
  
## Hidden Hand  
  
Hidden Hand is a marketplace for governance incentives, also known as "bribes." Protocols can use Hidden Hand to improve governance processes and engage voters. When using Hidden Hand, [DeFi](https://iq.wiki/wiki/defi) protocols will need to deposit a bribe into the Hidden Hand smart contract, these bribes are then sent back to users as a reward for their voting power.[\[3\]](#cite-id-p77tgae3p9)  
  
Hidden Hand will automatically choose the vote distribution with the highest bribe value. Otherwise, users will be rewarded in proportion to the size of their vote for a given bribe. Bribe rewards are distributed at the end of each voting period to users who have locked their veTokens.[\[4\]](#cite-id-6ou90pttrdd)  
  
### Hidden Hand Fee Structure  
  
Hidden Hand charges its users zero fees for interacting with the Marketplace. Instead, Hidden Hand takes a 4% fee on all bribes added to the protocol, this way it generates its revenue and sends half to its treasury, and half is sent to lockers of $BTRFLY for locking their tokens in the protocol.[\[5\]](#cite-id-kepdh2x2gxh)[\[6\]](#cite-id-3oqvuu3p2lm)  
  
For example, Vesta Finance uploads a $1M bribe in VSTA to the Frax Hidden Hand market. Hidden Hand will take a 4% fee on the $1M, a $40,000 turnover. The fee is then split in half between the treasury and lockers of rlBTRFLY, which will be claimable every 2 weeks. After the bribe is added, veFXS holders could then vote for the Vesta gauge on Hidden Hand and split a $960,000 pool of VSTA rewards.[\[7\]](#cite-id-vtx1ipo8sd)  
$$widget0 [YOUTUBE@VID](6KxwDGKlgmc)$$  
  
### Hidden Hand V2  
  
Hidden Hand V2 launched on July 6, 2023, with upgrades to the user experience and features that provide added flexibility for partners. Added features include Range Bribes - a new feature enabling bribe customization, specifying reward rates per vote and across multiple rounds for better control and efficiency.[\[23\]](#cite-id-6hwvpk2dsvn)  
  
Another feature is the Limit Bribes (Fill or Kill Orders) which enables bribers to set a maximum amount of tokens per vote, allowing partial fills and refunds if the deposited bribes aren't fully utilized, providing better cost control and fairness in reward distribution. [\[23\]](#cite-id-6hwvpk2dsvn)  
  
Lastly, Yield Harvester - an opt-in reward vault that consolidates gas costs for claiming various bribe tokens, converting them into a single target token ([WETH](https://iq.wiki/wiki/weth-wrapped-eth)). This provides cost-effectiveness for users who prefer not to receive small bribe payouts in various tokens. [\[23\]](#cite-id-6hwvpk2dsvn)  
  
## Pirex  
  
Pirex creates liquid wrappers that allow for auto-compounding and the tokenization of future yield/vote events. The Pirex ecosystem includes applications built on top of Pirex liquid wrappers that increase the utility of governance tokens for users, enable novel utility, and provide yield opportunities that are only available to Pirex wrappers users. pxCVX (Pirex vlCVX) was the first Pirex liquid wrapper, with more to follow.  
  
Pirex also offers developers incentives (in the form of referral fees and grants) to those wishing to build applications on the Pirex protocol. This will provide builders with a straightforward sustainable path toward building in the Pirex ecosystem.  
  
Pirex is considered a Redacted incubated product. 75% of fees received by Pirex are paid to Redacted, of which 42.5% are distributed to rlBTRFLY Holders, 42.5% to the Redacted Treasury, and 15% to the DAO Reserves.  
  
$$widget0 [YOUTUBE@VID](Zs3znj56pXk)$$  
  
### Pirex V2  
  
Launched on May 5, 2023, Pirex V2 introduces an improved user interface and Pirex BTRFLY, a feature that streamlines the management of rlBTRFLY positions, offering two options: pxBTRFLY and apxBTRFLY. [\[24\]](#cite-id-a5nuu29y1w8)  
  
By depositing BTRFLY into pxBTRFLY, users benefit from automatic management of their rlBTRFLY locks. However, users will still need to manually claim their earned BTRFLYT and [ETH](https://iq.wiki/wiki/ether-eth) rewards. [\[24\]](#cite-id-a5nuu29y1w8)  
  
apxBTRFLY performs the same functions as pxBTRFLY and also converts earned ETH rewards into more BTRFLY, locking it as rlBTRFLY automatically. [\[24\]](#cite-id-a5nuu29y1w8)  
  
# Pirex ETH (pxETH)  
  
Pirex ETH is an [Ethereum](https://iq.wiki/wiki/ethereum) liquid staking solution designed to simplify the [staking](https://iq.wiki/wiki/staking) process, making it more accessible and user-friendly. Being a solo validator comes with opportunity costs. Other LSTs aren’t flexible enough. Pirex ETH aims to solve both of these problems. [\[25\]](#cite-id-rl0tileio7n)  
  
Pirex ETH uses a two-token system built around ETH staking, consisting of pxETH and apxETH, tailored for different user preferences. This design gives users a choice: pxETH for liquidity or apxETH for boosted ETH staking yield. [\[25\]](#cite-id-rl0tileio7n)  
  
pxETH is for those willing to forgo staking yield in favor of liquidity and other yield-earning opportunities (like DEXes). apxETH is for users looking to maximize their ETH staking yield.  
  
Pirex ETH went live on the Ethereum [mainnet](https://iq.wiki/wiki/mainnet) on December 13, 2023, and formed the foundation of the Dinero protocol – an overcollateralized [stablecoin](https://iq.wiki/wiki/stablecoin) backed by premium blockspace. This marked the first phase of the Dinero rollout, setting the stage for the DINERO stablecoin and the Redacted Relayer. [\[26\]](#cite-id-vlhejfnpp4e)[\[28\]](#cite-id-hp9smkvdy2l)  
  
On March 4, 2024, the Redacted team announced Pirex ETH was now multi-chain. Users can bridge their pxETH and apxETH via the Dinero dapp to [Arbitrum](https://iq.wiki/wiki/arbitrum), [Optimism](https://iq.wiki/wiki/optimism), and [BNB Chain](https://iq.wiki/wiki/binance-smart-chain), by way of [LayerZero](https://iq.wiki/wiki/layerzero). [\[27\]](#cite-id-vbtv1f7s0ar)  
  
## Convex  
  
Convex is Pirex liquid wrapper for vote-locked Convex (CVX). It is a platform built to boost rewards for CRV stakers and liquidity providers. Convex boosts rewards thanks to the large amounts of veCRV that are under its control and the distribution of its CVX token as additional rewards.[\[8\]](#cite-id-1kjov7xkfrm)  
pxCVX is a pure liquid wrapper, with each pxCVX backed by 1 vlCVX, and all of the value from that vlCVX is passed onto the pxCVX holder. Its gauge votes will focus on maximizing returns to pxCVX holders and not bootstrap other Pirex or Redacted products. It is a vlCVX liquid wrapper that has the goal of increasing liquidity, yield, and utility for CVX holders.  
  
pxCVX allows CVX holders to have a liquid, tradeable version of vlCVX which is 1:1 backed by vlCVX and allows for auto compounding of yield and tokenization of future yield/vote events.  
There are three modes to deposit in Pirex for **pxCVX**, which are Standard Mode, Easy Mode, and Expert Mode. There are also two ways to exit pxCVX positions, which are:  
  
* Redacted will seed and maintain a pxCVX/CVX LP on Curve  
* pxCVX can be unlocked for CVX.  
  
### vlCVX  
  
vICVX is vote-locked CVX, the is the governance token of Convex. CVX can be locked for 16 to 17 weeks for vote-locked CVX (vlCVX) which cannot be traded or transferred. vlCVX holders can claim a portion of Convex platform fees and can vote for Curve governance proposals, including bi-weekly Curve gauge weight votes. vlCVX holders vote on Convex governance proposals to decide how Convex’s aggregate veCRV voting power will vote on Curve governance proposals.[\[9\]](#cite-id-5k6b10ovrqw)  
  
Pirex vlCVX is currently only on Ethereum mainnet but plans to go multi-chain shortly.[\[10\]](#cite-id-hxgsu60fzy4)  
  
# BTRFLY  
  
## BTRFLY Token  
  
BTRFLY is the governance token of the Redacted ecosystem. It can be used to vote on Redacted governance proposals and locked for rlBTRFLY to earn BTRFLY inflation and protocol revenue. BTRFLY has a free-floating value that is partially based on the intrinsic value within the treasury and the revenues generated by the treasury, and as such cannot be redeemable for the governance tokens in the treasury.  
The token can be minted in 4 ways which include Minting, Bonding, Dao Fees, and pBTRFL.  
  
## Token Allocation  
  
BTRFLY had an initial supply of 100,000 which was distributed through a triple Dutch Auction where OHM, CRV, and CVX were raised. At launch, BTRFLY was a rebasing token whose total token supply was consistently increasing due to staking rebase emissions, bond emissions, and DAO fee emissions.[\[11\]](#cite-id-uuxvasep6ap)[\[12\]](#cite-id-i976u3xz5ek)  
$$widget0 [YOUTUBE@VID](fNMrzndsibA)$$  
  
## rlBTRFLY  
  
rlBTRFLY are revenue-locked BTRFLY. rlBTRFLY enables BTRFLY holders to lock their tokens for a 16 to17 week period to earn revenue from Redacted's treasury and product ecosystem. Users can also lock BTRFLY v2 tokens for rlBTRFLY to earn revenue and inflationary BTRFLY pulse emissions. After locking for rlBTRFLY, users are rewarded in [ETH](https://iq.wiki/wiki/ethereum) which is gotten from Redacted’s treasury and ecosystem of products.[\[8\]](#cite-id-1kjov7xkfrm)  
  
## BTRFLY v2 Migration  
  
Redacted transitioned from rebasing tokenomics towards a fixed supply cap more commensurate with its focus on products such as Hidden Hand and Pirex. Both of which generate organic revenue for the protocol. This shift towards more sustainable tokenomics revolves around rlBTRFLY’s distribution of real yield from treasury farming and revenue from Redacted's products.  
  
The BTRFLY has gone from having an infinite supply to have a limited supply. At migration, the new supply was calculated as BTRFLY v2 Total Supply = (BTRFLY v1 Total Supply / 22.5%) / BTRFLY v1 Index, rounded up to the nearest 50k. [\[13\]](#cite-id-dxoum4m7n5b)  
$$widget0 [YOUTUBE@VID](bPXobpnK8qA)$$  
  
# DAO  
  
Redacted is governed by its community, which is the BTRFLY holders. The community decides the direction of Redacted, and there is also an established governance process that allows the ecosystem to evolve. This process comes in stages starting with, Drafting a Proposal, Requesting Feedback, Creating RIP based on RFF, RIP Snapshot Submission, and Linking Snapshot to a revised Commonwealth proposal.[\[15\]](#cite-id-7wt8jqjqhs)  
  
## Treasury  
  
The treasury is where all of Redacted's revenue and governance power is stored. Most revenue on Redacted is generated through various forms such as bonds, bribes, and yield farming strategies.[\[16\]](#cite-id-x6pfx1ip46)  
  
# Tokenomics  
  
## At launch  
  
BTRFLY had an initial supply of 100,000 which was distributed through a triple Dutch Auction where [OHM](https://iq.wiki/wiki/ohm), CRV, and CVX were raised. BTRFLY was a rebasing token whose total token supply was consistently increasing due to [staking](https://iq.wiki/wiki/staking) rebase emissions, bond emissions, and DAO fee emissions.  
  
## Redacted v2  
  
Redacted has transitioned from rebase tokenomics towards a fixed supply cap (5,000,000 BTRFLY) more commensurate with its focus on products such as Hidden Hand and Pirex. Both of which generate organic revenue for the protocol. This shift towards more sustainable tokenomics revolves around rlBTRFLY’s distribution of real yield from treasury farming and revenue from Redacted's products. [\[22\]](#cite-id-2wyh8hkoko7)  
  
Redacted V2 plans to burn all pBTRFLY distributed to the founding team, investors, and Olympus in Redacted V1 and distribute an equal allocation of the V2 BTRFLY supply. Allocations for the founding team and Olympus will be backweighted with a 6-month cliff and a 3-year vest schedule. Investors will receive no cliff and a 3-year vest schedule. [\[22\]](#cite-id-2wyh8hkoko7)  
  
The Pulse emissions token supply will be allocated to strategic treasury initiatives, including current and future Redacted products (rlBTRFLY, Hidden Hand, Pirex), liquidity programs, bonds, seed rounds, DAO treasury swaps, and other protocol-owned value mechanisms.  
The DAO Reserves will be paired with protocol revenue to fund Redacted DAO operations. Operational costs include team compensation, audits, bug bounties, marketing materials, conferences, subscriptions, services, etc. [\[22\]](#cite-id-2wyh8hkoko7)  
  
rlBTRFLY will allow users to lock their BTRFLY for 16-week intervals and receive a portion of Redacted's revenue. Redacted will calculate the revenue split from its three primary revenue sources: Hidden Hand, Pirex, and Farming. [\[22\]](#cite-id-2wyh8hkoko7)  
  
* Hidden Hand Fee Revenue Split:  
    * rlBTRFLY: 50%.  
    * Redacted Treasury: 35%.  
    * DAO Reserves: 15%.  
* Pirex Revenue Split:  
    * rlBTRFLY: 42.5%.  
    * Redacted Treasury: 42.5%.  
    * DAO Reserves: 15%.  
* Treasury Yield Split: The treasury yield split to rlBTRFLY holders will increase (from 15% to 42.5%) as the Redacted treasury size increases. The size of the treasury will be evaluated at the beginning of each quarter to determine each upcoming quarter's revenue-sharing split.  
  
# Partners  
  
Protocols that integrate Redated products include Abacus, [Alchemix](https://iq.wiki/wiki/alchemix), Aura, [Balancer](https://iq.wiki/wiki/balancer), Berachain, Biba, [Chainlink](https://iq.wiki/wiki/chainlink), Citadel Dao, [Curve Finance](https://iq.wiki/wiki/curve-finance), Commonwealth, [Convex](https://iq.wiki/wiki/convex-finance), dAMM Finance, Debt Dao, [Dopex](https://iq.wiki/wiki/dopex), Drops Dao, [JPEG'd](https://iq.wiki/wiki/jpegd), Fiat Dao, Floor, [Frax Finance](https://iq.wiki/wiki/frax-finance), [Lido](https://iq.wiki/wiki/lido-dao), Mover Dao, [New Order](https://iq.wiki/wiki/new-order), [Olympus](https://iq.wiki/wiki/olympus-dao), [Perpetual Protocol](https://iq.wiki/wiki/perpetual-protocol), Ribbon, [Stake Dao](https://iq.wiki/wiki/stake-dao), Stargate, Tokemak, Tribe, Umami, Utopia Labs, Velodrome, and Vesta.[\[20\]](#cite-id-q34h6qdmr8)

Pirex V2

Hidden Hand V2

Pirex ETH went live on the Ethereum mainnet on December 13, 2023

Pirex ETH on Ethereum Mainnet & Dinero Launch

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REDACTED is a suite of smart contracts offering on-chain liquidity, governance, and cash flow for DeFi protocols, powered by the BTRFLY token.

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Pirex V2

Hidden Hand V2

Pirex ETH on Ethereum Mainnet & Dinero Launch

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