BTRFLY

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Redacted

Overview of Redacted

Redacted is a decentralized finance (DeFi) protocol that focuses on liquidity management and meta-governance services for other DeFi projects.

Key Use Cases

• Liquidity Management: Redacted acquires governance tokens across various DeFi protocols, such as Curve and Convex, to provide liquidity management services. It uses a bonding mechanism to accumulate these tokens in its treasury, which in turn backs its native token, BTRFLY.
• Meta-Governance: By accumulating governance tokens, Redacted can influence governance decisions on behalf of its users, helping them manage liquidity more efficiently. This includes voting on pool reward emissions and other governance matters.
• Revenue Generation: Redacted generates revenue through several products, including Hidden Hand, a marketplace for governance incentives (bribes), and Pirex, a liquid wrapper for auto-compounding and tokenizing future yield events. These products provide additional yield to users and contribute to the protocol's revenue.
• Computer-Aided Governance: Redacted plans to offer a tool called Computer-Aided Governance, which uses big data and machine learning to automate decision-making processes for other DAOs and DeFi protocols.
• Acquisitions and Investments: Redacted has acquired Votemak, a platform for influencing liquidity on Tokemak, and made seed investments in projects like Curvance and JonesDAO to expand its ecosystem and revenue streams.

Benefits of Redacted

• Fairer and Stable Prices: Redacted helps maintain fairer and stable prices for users trading its tokens by accumulating and managing a basket of useful assets like CRV, CVX, TOKE, wETH, and FXS through its bonding mechanisms.
• Better Farming Yields: Users can bond tokens into the treasury to acquire BTRFLY at a discount, leading to better farming yields.
• Accumulation of Voting Power: Redacted accumulates voting power over Curve by locking tokens, which can be used to boost rewards to liquidity pools that align with Redacted's interests.
• Governance and Revenue Sharing: Users can lock BTRFLY tokens to receive rlBTRFLY, which earns revenues from the Redacted ecosystem and rewards from the treasury.

Challenges and Weaknesses

• Inflation: The release of BTRFLY tokens via rewards or bonding at a discount leads to inflation in the ecosystem, which can dilute the market share of existing token holders.
• Volatility: BTRFLY, like other crypto tokens, has been very volatile for investors, making long-term growth uncertain.
• Complexity: The initial Ohm fork mechanics and strategies can be confusing for users, but Redacted V2 aims to address these issues with better tokenomics and features like Hidden Hand and Pirex.

Future Developments

• Redacted V2: The planned version 2 will pivot to a fixed token model, introducing glBTRFLY for governance and rlBTRFLY for revenue sharing, which aims to alleviate previous rebase issues.
• Hidden Hand and Pirex: These features are expected to generate new cash flow streams for Redacted and incentivize users to stake their BTRFLY, raising the net demand for the token.

Founders of Redacted

• Shanjan Kumar: CEO and co-founder of Redacted, with a background in mechanical engineering from Monash University and experience working at Tesla and Advanced Robotics Australia. He also co-founded Project Godjira, a successful NFT collection project.
• Other Co-founders: Not specified in the provided sources, but the leadership team includes individuals with diverse backgrounds from top-tier companies such as Tesla, Bank of America Merrill Lynch, Kraken, and LEGO.

Investors in Redacted

Redacted has secured funding from several prominent investors, including:

• The Spartan Group: Co-led the funding round, emphasizing their confidence in Redacted's innovative approach to building an entertainment datasphere.
• Saison Capital: Participated in the funding round, highlighting Redacted's potential appeal to a growing degen audience and its crypto-native approach.
• Animoca Brands: Contributed to the funding, underscoring their support for Redacted's comprehensive ecosystem of entertainment and gamification products.
• Polygon Ventures: Also participated in the funding round, further solidifying Redacted's position in the Web3 space.
• Leading Web3 Founders and Investors: Notable figures such as Dingaling and Grail, along with other venture capitalists, angel investors, and whales, have invested in Redacted, demonstrating their belief in the project's potential.
• Expert Dojo and Frekaz Group: These investors have also backed Redacted's new crypto fund aimed at supporting early-stage Web3 startups in entertainment, DeFi, and gaming.

Islamic Perspective on Cryptocurrency

The question of whether Redacted is halal is debated among Islamic scholars. Here is a brief overview:

• Major Concerns: Many scholars argue that cryptocurrencies, including Redacted, are haram due to several reasons:

  • Gharar (Uncertainty): Cryptocurrencies are known for their volatile nature, which is akin to gambling and is forbidden in Islam.
  • Anonymity and Ethical Issues: The anonymity of crypto transactions raises concerns about illegal activities, which are indisputably haram.
  • Riba (Usury): Some cryptocurrencies yield profits or interest, which is prohibited in Islam.
  • Non-Tangible Nature: The lack of physicality contradicts Islamic finance principles, which emphasize the need for a physical commodity or asset underlying financial transactions.
  • High Risk and Unregulated Nature: Cryptocurrencies are high-risk investments and lack oversight, which can lead to fraudulent practices and manipulation, both of which are against Islamic principles.

• Diverse Opinions: However, some scholars believe that cryptocurrencies can be halal if they are used in a way that adheres to Islamic principles, such as not engaging in illegal activities and ensuring that transactions are transparent and fair.

Given these diverse opinions, the answer to whether Redacted is halal is not straightforward. However, based on the majority view among Islamic scholars:

No, Redacted is generally considered haram due to the concerns mentioned above, particularly the elements of gharar, anonymity, and potential for riba.