Redacted v2 Guide: Token Migration & rlBTRFLY

August 5th, 2022

The time has finally come. Redacted v2, which includes a new BTRFLY token and rlBTRFLY, are ready for launch. This change will complete Redacted’s transition from a bond-centric, dilutive token model to a model focused on producing real yield for rlBTRFLY holders.

On August 8, 2022, holders of the BTRFLY v1 token will need to migrate to the new BTRFLY v2 token. From there, users will be able to lock their BTRFLY v2 tokens as rlBTRFLY for 16-17 week epochs and earn revenue (paid in ETH) plus BTRFLY inflation (i.e. pulse) emissions.

We outline all action items in detail below.

Migrating to BTRFLY v2

After Redacted v2 goes live: BTRFLY v1 holders can choose to migrate any of their v1 tokens (BTRFLY, xBTRFLY, wxBTRFLY) directly to BTRFLY v2. Save gas, there is no need to unstake or unwrap your tokens first.

Users can choose to either:

Migrate directly to BTRFLY v2. The number of BTRFLY v2 users receive will equal the number of BTRFLY v1 / BTRFLY v1 Index.
Migrated to BTRFLY v2 and lock directly into rlBTRFLY. Please note that rlBTRFLY is locked for 16-17 weeks depending on when a user decides to lock.

BTRFLY Liquidity Migration

To support the migration, we will need to migrate liquidity from the BTRFLY v1 token to support BTRFLY v2 tokens. While liquidity for BTRFLY v1 tokens will be removed on August 8, 2022, BTRFLY v1 token holders will always be able to migrate their tokens through the Redacted website.

At launch, we will migrate our current Curve BTRFLYv1-ETH LP to a new Curve BTRFLYv2-ETH LP. Soon after migration we will start pushing for a new Curve gauge for this liquidity pool.

In the following days, we will migrate our Sushi BTRFLY-OHM LP to Balancer. During that migration, we will be calling Olympus’s IncurDebt function which will allow us to (1) stake our OHM that was in our LP; and (2) take a loan against that sOHM/gOHM to fund our LP. This will allow us to partake in Olympus’ emissions for staked OHM while still providing liquidity.

We will notify everybody during this process so there will be no surprises.

Warning: Slippage and Scam Tokens

Slippage warning: During the liquidity migration, other third parties may create small pools or keep old pools open. This may lead to high slippage on small trades. Please double check that you are trading in a pool with depth before executing any trades.

Aggregators vs. Balancer / Curve: It often takes aggregators like Matcha, 1inch, and Cow Swap a little time (1-2 weeks) to index new pools. Before trading on an aggregator, please confirm that the aggregator has indexed the new pools and is using the right token addresses. You should also check directly with Balancer and/or Curve to see if they have better prices just to verify that the aggregators are performing as expected.

Avoid Scam Tokens: During the migration process, be very careful where you trade for/with BTRFLY tokens. Before executing a transaction, please double check the token addresses. Do not accidentally buy the wrong BTRFLY token or a fake BTRFLY token. A full list of token addresses will be provided after launch. They will be found at the bottom of this post.

rlBTRFLY

The first epoch for rlBTRFLY will start on August 11, 2022 at 00:00:00 UTC. In order to be eligible for rlBTRFLY rewards for the first epoch, you will need to have locked your BTRFLY into rlBTRFLY by August 10, 2022 at 23:59:59 UTC. This gives you c. 3 days from launch to lock your BTRFLY v2 tokens. Rewards for the first epoch will be available the following week. These will include all rlBTRFLY rewards (i.e., profit sharing and BTRFLY emissions) from June 1, 2022 through August 10, 2022.

For specifics on how rlBTRFLY works, browse our FAQ here.

If you have any questions, please ask in the Discord and open up a support ticket.

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