RA is a native liquidity layer on Fraxtal. It enhances liquidity provision by optimizing for high-frequency liquidity providers and layer-2 cost structures, creating a hyper-efficient liquidity layer. ^[1][2]

Overview

RA is inspired by RAMSES DEX^[14] on Arbitrum, it inherits the proprietary Concentrated Liquidity ve(3,3) implementation, delivering efficiency to the Fraxtal liquidity scene. ^[3]

RA has chosen to deploy on Fraxtal due to a successful relationship with RAMSES and other related forks. Fraxtal offers features not available on other Layer 2s at the time, attracting builders like RA. For instance, sequencer revenue is shared with transaction callers and smart contracts, promoting blockspace usage. Additionally, the native gas of frxETH accelerates Frax's growth, making it an intuitive design choice for RA's operations. ^[3]

RA DEX Functionalities

Swaps

On RA, similar to other decentralized exchanges (DEXs), users can swap tokens for others. The slippage and trade price are determined based on the total value locked (TVL) in the liquidity pairs and whether arbitrage activities have balanced the pool to its market rate. RA features two types of Liquidity Pools, each with its own swap curve:

Volatile (UniV2-Style)

This is the basic type of pool where tokens are paired with equal weights in terms of dollar value. The volatile swap curve is used to facilitate trades within these pools. ^[4]

Correlated (Andre-Style)

RA utilizes a stable swap curve which was originally devised by Andre. The stable swap curve offers near-zero slippage and is designed to honor his innovative approach to stable swaps. ^[4]

Voting

Voting determines the allocation of emissions to LP token pairs through the veRA NFT. Emissions are distributed proportionally to the total percentage of votes in the epoch. ^[5]

Bribing

Vote Bribes

Users and protocols can offer bribes to voters, influencing them to allocate emissions to specific token pairs. In exchange for their votes, the briber receives a proportionate distribution of the bribes. This mechanism allows stakeholders to shape the allocation of emissions according to their preferences and strategic interests. ^[6]

Gauge Bribes

In addition to emissions, tokens can be directly offered as bribes to LP (liquidity provider) stakers. This incentivizes the growth of liquidity in specific token pairs, primarily benefiting protocols seeking to bootstrap liquidity efficiently within the RA AMM (Automated Market Maker). By offering gauge bribes, protocols can attract liquidity and promote the development of robust trading pairs. ^[6]

Vesting (veNFT Management)

Managing veRA (veNFT) positions is a crucial part of the RA model. As a user or a protocol, it is advised to routinely visit the vesting page to adjust ve lock lengths, merge, or create a new veRA position. ^[7]

LP Staking

In the RA model, liquidity providers do not receive all swap fees, as a portion is allocated to veRA holders. Staking gauges incentivize users to provide LP tokens, offering attractive APRs. The allocation of votes to a pair determines the NILE (an authorized fork of RAMSES) emissions to the gauge in the subsequent epoch. A user's gauge boost influences the reward rate for each LP position, with larger veRA positions resulting in higher LP boosts proportionate to the position. ^[8]

RA Token

RA has an initial supply of 5,000,000 tokens out of a 12,500,000 maximum supply. 20% was allocated to airdrop, 20% to contributors, 20% to LBP on Mainnet, 20% to Ve Partner Allocations, and 20% to Frax ecosystem veNFT. The RA distribution and vesting schedule is still under development. ^[9]

xRA (Escrowed RA)

xRA, a new solution from the RA team, addresses the sustainability challenge posed by natural fluctuations in flywheel operations. It acts as a non-transferable representation of 1 unit of RA, securely stored within the xRA token smart contract. Users can convert xRA to RA or veRA with various penalties and vesting periods. ^[10]

Users can obtain xRA through vote bribes and emission splits in specific low-impact liquidity pairs. The RA team plans to use xRA to enhance sustainable vote-bribe matching programs. Each gauge can earn a proportional split of RA/xRA based on the liquidity pair's impact on the DEX's health. Core pairs, crucial for ecosystem growth and DEX longevity, will primarily receive emissions in liquid RA. Conversely, pairs with low volume and fee generation will receive a higher percentage share of emissions in xRA. This strategy is used to promote sustainability and to discourage short-term capital not aligned with ecosystem goals. ^[10]

Utility

xRA offers three distinct functionalities that form the basis of the decision matrix:

• Instant Exit to RA (xRA --> RA): This conversion allows for an immediate transfer of xRA to RA at a rate of X* RA per xRA with a Y*% haircut applied.
• Instant Exit to veRA (xRA --> veRA): With this functionality, xRA can be instantly converted to veRA at a rate of 1 veRA per xRA.
• Vesting of xRA (xRA --> RA or veRA): Vesting allows users to receive the full value of the RA backing each xRA^[11]

Core Team

• DOG - Co-founder^[12]
• North - Co-founder^[13]
• Ren - Back End Developer
• Alpha - Front End Developer
• GigaSafu - API and Infrastructure
• Echovl - Subgraph, Infrastructure, and Front End support
• King - Admin
• Achi - Community Admin