Introducing The Hidden Hand Marketplace
Redacted
0xE90c
January 19th, 2022

It’s time to reveal the new use product we have been working on. An extension of the cartel that will empower the protocol to be at the forefront of DeFi bribes — the Hidden Hand bribe marketplace. Hidden Hand enables protocols with vote-escrow tokens to access a marketplace that lets others bribe their token holders to vote for their best interests.

Cash Flow Is King

Currently, BTRFLY holders are able to access a diversified index of governance tokens but are not able to either leverage their underlying voting power efficiently in the treasury nor receive worthwhile bribes and revenue on their tokens. With our new Hidden Hand marketplace, we will create a bribe platform on top of the DAO that lets protocols create markets for their ve-tokens where Redacted captures a fee that is distributed back to lockers of the BTRFLY token.

Examples:

  • Tokemak creating a market for protocols to bribe TOKE holders to vote for new core reactors and TOKE rewards.

  • Lido creating a market for Layer-1s to bribe LDO holders to vote for new validator support and LDO rewards.

  • Sushi creating a market for early-stage projects to bribe SUSHI holders to vote for SUSHI rewards on their LP.

  • Dopex creating a market for protocols to bribe DPX holders to vote for new SSOVs and DPX rewards.

Hidden Hand is a flexible marketplace for nearly all DeFi protocols to get more value for their token holders and expedite the process of creating demand for their ve-Tokens. For Redacted, this enables our token holders to access a completely novel and diversified revenue stream of governance tokens that rewards them for locking their BTRFLY over a 16-week period.

Hidden Hand will be enabled by our recent acquisition of Votemak, where users can select which Tokemak reactor they want to help enable. Protocols deposit a bribe into the Hidden Hand smart contract, which are sent back to users as a reward for their voting power. Through this acquisition we will be extending the use-case out in a permissionless manner where any protocol can create a bribe marketplace for their token.

For voters there is no cost to using Hidden Hand, instead the Redacted protocol generates revenue by taking a fee from each bribe. The fee is currently set to 4% where half is sent to the treasury to increase the backing per $BTRFLY and half is sent to lockers of $BTRFLY as a bonus APY for locking their tokens in the protocol.

An extension like this puts us in a position where $BTRFLY can receive revenue from bonds while also getting a cut of all DeFi bribes across all chains.

How it works

  1. Users lock their relevant governance token in their protocols’ veToken system and delegate it to Hidden Hand to get bribed for their vote.

  2. External protocol looking for rewards or votes on their token bribes the relevant pool on Hidden Hand.

  3. Hidden Hand will auto-select the vote distribution that yields the highest bribe value

  4. Bribe reward goes back to users who locked their tokens.

  5. 4% fee is taken by the protocol and sent equally to lockers of BTRFLY and the redacted treasury.

Wen?

We are finalizing the first cohort of projects from our current waitlist of 18 protocols across Ethereum, Arbitrum, and Fantom and will shortly after be pushing the new codebase for an audit with a target to deploy the first instance by February.

If you would like to join the shortlist of the first cohort please reach out over email at chapo@redactedcartel.xyz and sami@redactedcartel.xyz.

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