🪙$R2 Token
R2 Token is the core token of the R2 Protocol, serving as an on-chain yield certificate backed by real-world asset returns. It is distributed through a seasonal points-based mechanism, encouraging users to stake and hold over the long term, while offering both free market liquidity and a guaranteed redemption option. It effectively balances stable yield, liquidity, and incentive efficiency.
R2 Token = Yield Certificate + Incentive Medium + Governance Asset
Specifically:
It serves as a certificate for stablecoin yield distribution. Users stake R2USD → receive sR2USD → earn R2 Tokens based on accumulated points.
It acts as an incentive tool, tied to the user’s staking duration and holding period.
In the future, it can also evolve into a governance token for protocol decisions.
Yield Mechanism & Value Support Logic
The value of R2 Token comes from:
Realized yields generated by the R2 Protocol (such as T-Bills, MMFs, management fees, penalties, etc.).
R2 Tokens are released on a seasonal basis and distributed to sR2USD holders.
AUM is tied to total protocol yields, and total yields are directly linked to the amount of R2 token release, ensuring that token emissions always align with actual returns, preventing over-minting.
Core Logic:
Users stake R2USD and receive sR2USD.
sR2USD accumulates points over time: Points = Staked Amount × Holding Period.
Every season, R2 Tokens are distributed based on points. The longer the holding period and the larger the staked amount, the more R2 Tokens a user receives.
Users can:
Sell R2 via the official redemption channel for a guaranteed APY of 6%–10%. (Additionally, users may leverage DeFi tools such as Morpho and Pendle to further enhance returns.)
Trade R2 freely on DEXs/CEXs to potentially capture higher market premiums.
Minting Formula:
Minted Amount=Seasonal Realized Yield/(R2 Average Market Price×Adjustment Factor)
*0.92 here is an internal factor within the minting mechanism, designed to balance the pace of point-based distribution with market dynamics.
Burning Formula:
Burned Amount=Amount of R2 Redeemed via the Official Bonding Contract
Circulating Supply Dynamics:
R2 Circulating Supply=Initial Supply+Total Minted−Total Burned
Initial Issuance
For investors, testnet airdrops, market making, and initial yield seasons
Dynamic Minting
Based on actual yield & market prices, seasonal minting according to demand
Auto Burn
All R2 tokens sold via the official channel are burned to reduce circulating supply
Free Market Trading
R2 tokens traded on DEXs/CEXs are not burned; they circulate freely
Long-term Supply Balance
Higher AUM → More minting, but burn mechanism offsets issuance to stabilize circulation
Bonding Contract Price:
Every season, the Bonding Contract’s fixed price is determined based on the market’s TWAP (Time-Weighted Average Price):Bonding Price=Market TWAP×Adjustment Factor
The adjustment factor is generally set between 2% to 10%, depending on market conditions.
For example, if the TWAP is $0.10, the bonding price could be set at $0.095 or $0.09.
The bonding channel offers a "minimum guaranteed price," providing users with a last-resort exit option even amid market volatility.
However, long-term users naturally prefer to hold R2 and sell at higher market prices, reducing short-term selling pressure.
This mechanism strikes a balance between incentivizing long-term holding and ensuring adequate liquidity.
Summary of User Options:
Free Market: High potential returns, high volatility, no lock-up, but users bear market risks.
Bonding Channel: Low price, low risk, burning + lock-up constraints, but limited upside.
The R2 Protocol does not interfere with user choices but uses its mechanism design to guide organic market segmentation and reduce sell pressure.
The bonding price is always set below the market price, giving users an exit option during liquidity needs— but long-term yields are always reserved for those who are willing to hold.
Last updated