🌟Core Mechanisms
Yield System
R2 Protocol offers a flexible and transparent yield system designed to accommodate different risk appetites and yield preferences.
How It Works:
Deposit USDC/USDT to mint $R2USD.
Choose a staking pool based on your risk-return profile:
T-Bill Pool → Stake to receive sR2USD (Low-risk, ~4–5% APY).
Private Credit Pool → Stake to receive sR2USD+ (Medium-risk, ~8–12% APY).
Both staking vouchers automatically accumulate points over time.
Points Formula:
Points = Staked Amount × Holding Days
The longer you stake, the more points you accumulate—directly affecting your yield rewards.
Redemption Rules:
sR2USD (T-Bill Pool)
Flexible Redemption:
Redemption requests can be submitted anytime (T+0 submission).
Funds are received after a T+3 settlement period.
No permanent lock-up; fully flexible.
sR2USD+ (Private Credit Pool)
Flexible Redemption with Extended Settlement:
Redemption requests can be submitted anytime (T+0 submission).
Funds are received after a T+7 to T+10 settlement period (depending on underlying asset liquidity).
No permanent lock-up, but longer redemption time due to private credit nature.
Season-Based Rewards:
Only staking vouchers (sR2USD or sR2USD+) held until the end of the current season qualify for yield rewards.
Early redemptions before the season ends will forfeit all accumulated points and yield rewards for that season.
T-Bill Pool
sR2USD
~4–5%
Low
~4 weeks
Private Credit Pool
sR2USD+
~8–12%
Moderate
60–90 days
Key Takeaway:
Select your pool based on your yield goals and risk tolerance. Stake longer to maximize rewards. Withdraw anytime—but only those who stay until the season ends will receive full yield rewards.
Seasonal Yield Distribution
Every season, the protocol distributes yields in R2 Tokens.
R2 Tokens are distributed proportionally based on the points accumulated by each user.
This system rewards long-term participants who commit for the entire season.
Dynamic Minting & Auto Burn
Minting Formula: Seasonal Realized Yield / (Average Market Price × Adjustment Factor).
Auto Burn: All R2 Tokens sold via official bonding contract are burned.
Bonding Contract Mechanism Explained
R2 Tokens distributed as yield rewards can be sold via the Bonding Contract.
The bonding price is fixed and set below the market’s TWAP (Time-Weighted Average Price) using an adjustment factor.
This mechanism provides users with a guaranteed APY and a lower-risk exit option.
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