⚒️BRR's Modularity and Stability
Plug and Play Approach
BRR uses a plug-and-play approach with distinct modules and policies, managing minting, redemption, basket weights, liquidity, and supply-demand control. Unlike stablecoins and other pegged assets, BRR has no peg, only an enforced lower bound, and uses multiple methods to maintain market price stability above backing.
Fixed Price Floor, Free Floating Market Price
Inspired by Hayek's Ducat concept, BRR is redeemable at a fixed rate for underlying reserves and has a free-floating market value. To capture yield premiums, we aim to keep BRR pseudo-stable at a premium price.
Staged Release
This is an untested idea with a largely original codebase; thus, there are many pieces to deploy and stress test. Given that we want to hit the ground running, we will target deploying many new components once we are live on Sei Mainnet—with two additional major releases within the first 18 months of launch. We aim to sufficiently decentralize BRR and all adjacent components of the main Arcadefi protocol by V3.
Tentative Roadmap for BRR
Increasing Demand
Coin Pusher Incentives
(non transferable until TGE)
Coin Pusher Incentives (transferible liquid $ARCADE)
Sei Incentives
V1 + :
ARCADE bonds when below target premium
BRR savings rate when below target premium
Allow users to borrow BRR backing against their holdings
V2 + :
Optimisations in incentives using modelling
Increasing Supply
oBRR lottery :
oBRR given to ARCA holders, when BRR is above 4x premium
Allowing users to borrow BRR backing against ARCADE holdings
V1 + :
Some oBRR sold via GDAs
V2 + :
Optimise supply correction rates and pricing using advanced modelling
Liquidity Management
Liquidity between all AM vaults
Beta+: Incentivised concentrated liquidity between 2x & 4x premium + full range
V1 + :
Optimisations in incentives using modelling
Same as V2
Index
Initially set, no reweighting procedure. Composed of :
iSEI(AM)
USD(AM)
ETH(AM)
Unchanged from Beta.
Sei weighted at 25% (min), all other components SQRT Free Float Weighted.
Each asset class represented by a 1 AM vault from a Seiv2 based protocol.
Potential to diversify index to include multiple Seiv2 based vaults per asset class.
V2+ :
Support multiple vaults per asset class, including those from other chains.
Decentralised mechanisms for introducing new asset classes and controlling AM vault weights within asset classes
Yield on AM vaults
Deposited at oracle value, changing weights. BRR minted.
Unchanged from Beta
V1 + new cases :
Non index AM vault yield is accounted for and used to mint BRR, but is not added to main pool
V2+:
Arcade Machine Vault factory + automated bridging, on all major chains
Rebalancing
None
None
Private Weighted Pool. Weights set weekly.
Move yield from non index vaults into weighted pool to replenish exit liquidity as needed
TBD
Sei Incentives Programme Minting Process
None
BRR is minted at oracle Price, weight freely changes
Weighted Poolmath + Price Feeds used to determine number of Sei minted
Same as V2
Last updated