2022 has been a chaotic year. 3AC, FTX, and others have collapsed – sending shockwaves through the industry, causing damage that will take a long time to fix.
Despite that, we’re here to stay and we’ve spent the past few months reflecting on our position in the market. Redacted started as a meta-governance project, but has evolved into something much more exciting since our launch one year ago. In the depths of one of the most chaotic bear markets to date, we took over 15 new, revenue-generating smart contracts to market through our two products Hidden Hand and Pirex.
In the past several months we launched new tokenomics with Redacted V2, where users (so far) have locked over 80% of the BTRFLY supply as rlBTRFLY. We’ve distributed c. $1 million in revenue/rewards to rlBTRFLY holders in just four months. Hidden Hand has facilitated c. $9 million in cumulative bribe volume. Pirex is home to over 1.6% of the CVX supply. And our treasury remains strong, with over $18 million in productive assets that we use to exercise influence and generate revenue across DeFi.
Redacted is a critical infrastructure provider for empowering on-chain liquidity, governance, and cash flow for DeFi protocols.
In this blog post we’ll outline a strategic north star for the DAO and our ecosystem as we enter 2023.
The success of Hidden Hand and Pirex is no accident. It’s the result of building infrastructure that projects want and need.
Hidden Hand has integrated eight partners across Ethereum and Ethereum L2s, with more partners and more chains in the pipeline. To date, Hidden Hand has facilitated c. $9 million in cumulative bribe volume, averaging $400,000 to $700,000 in volume per week. The majority of this volume comes from the Balancer and Aura ecosystem – two partners we’ve worked closely with for a while now.
Notably, the Balancer and Aura partnerships show Hidden Hand’s potential as a key piece of infrastructure. For example, Balancer has created a self-sustaining bribe economy through BIP-19. BIP-19 allows Balancer to take revenue earned by its “core” pools, e.g. wstETH / ETH, sell that revenue for USDC, then use that USDC to bribe said pool, thus increasing each core pool’s TVL and revenue earning potential. We love a good flywheel.
Beyond Hidden Hand, Pirex has also found success in a competitive market. Since launching pxCVX, over 1.6% of the CVX supply has found its way into Pirex. In the meantime we’ve been rebuilding Pirex behind the scenes to make it more scalable, which will allow us to support other protocols more easily.
In fact, Pirex GMX / GLP, Pirex BTRFLY, Pirex ████, and others are launching in the near future. Soon enough Pirex will expand across multiple chains, multiple protocols, and multiple verticals.
We also have new products going live in 2023. Let’s discuss.
While we’re proud of how far we’ve come this year, we think Redacted has much more potential. We often build on other projects, and in doing so, we’ve discovered that many projects lack the necessary demand to make the integration a success. This causes the DAO a lot of engineering overhead, and business development overhead, and creates an over-reliance on external teams.
In 2023 Redacted will become a base plate with no external dependencies.
What does this look like exactly? You’ll have to wait and see. But, here’s what we can say… Our treasury puts us in a strong position to launch our own financial primitives. We can bootstrap our liquidity, influence token flows, and ink essential partnerships that will allow these new primitives to hit the ground running. In a bear market, where resources are scarce, this will help each new primitive build a moat.
One such primitive will be our stablecoin called Dinero. Dinero will be the first of its kind: an over-collateralized stablecoin backed exclusively by Ethereum █████ █████. It will be rolled out in phases, with phase one launching in Q1 ‘23.
Hidden Hand and Pirex will continue to support our efforts in the background; expanding their scope and onboarding new partners. But, all roads lead to Dinero – an idea we believe is really special. If you’re searching for alpha, our Discord is a good place to start.
It’s been a rollercoaster of a year and we’re looking to the future with an ambitious plan for 2023. We are confident that we can introduce new ideas to the market that will set Redacted apart from the rest of the industry.
Stay tuned, ████ 🦋