$leRAAC¶
$leRAAC is RAAC's fork of Clever's clevCVX, a wrapper for $veRAAC. $leRAAC is a self-repaying, non-liquidating loan against max locked $veRAAC.
Technical Reference
For the token contract implementation details and functions, see the LeRAAC Token documentation.
Core Contract
The Liquid Locker is the central contract that manages RAAC deposits, veRAAC locking, and leRAAC borrowing.
Architecture¶
Benefits¶
$leRAAC comes with the following benefits:
Incentive Alignment¶
Instead of distributing liquid $RAAC, the underlying of $leRAAC is $veRAAC. This makes incentives most attractive to believers in RAAC. Additionally, the price impact of sell pressure on $RAAC is reduced.
Direct Rewards¶
$leRAAC allows token holders to claim future $veRAAC yields which can be used instantly. Recipients essentially receive $veRAAC and a self-repaying, non-liquidating loan that is paid off by $veRAAC yield.
Governance Power¶
The underlying $veRAAC is used by the protocol during gauge voting to maximize rewards and protocol health. Governance power remains in the hands of leRAAC holders.
How It Works¶
- User receives $leRAAC at 50% LTV of the underlying $veRAAC from the ecosystem distribution
- The yield of the underlying $veRAAC pays off the user's debt
- After the debt has been paid back, the user can unlock the underlying $veRAAC after the 12-month lockup period
User Strategies¶
This opens up multiple strategies for users:
- Deposit $leRAAC in the Maturity Vault to receive $RAAC over time as debt is paid back, determined by the $veRAAC yield and total deposits in the vault
- Pay back the $leRAAC loan and unlock the underlying $veRAAC (12-month lockup)
- Sell leRAAC, wait for the yield to pay back the debt and then unlock the underlying $veRAAC (12-month lockup)
- Trade around the $leRAAC price — for instance, buy discounted $leRAAC to pay back their loan quicker and more cheaply. Or buy discounted $leRAAC and deposit it into the maturity vault
Maturity Vault¶
When real tokens enter the system from a yield or bribe harvest, synthetic $leRAAC are minted against them on a 1:1 basis. These $leRAAC are distributed to depositors (with any outstanding debt paid down first), while the harvested real tokens are deposited into the Maturity Vault under a short vesting schedule of 1–2 weeks, during which they become available for swapping.
Inside the Maturity Vault, the real tokens are exchanged for their $leRAAC equivalent at par (1:1), and the corresponding $leRAAC are then burned. Each depositor receives a share of the real tokens proportional to their share of the total $leRAAC deposited.
Technical Reference
For the vault contract implementation details and functions, see the Maturity Vault documentation.