Revenue Distribution
Investors get paid rent every second
Last updated
Investors get paid rent every second
Last updated
LGypsy is an implementation of Maple Finance's Revenue Distribution Token.
RevenueDistributionToken (RDT) is a token implementing the ERC4626 Tokenized Vault standard featuring a linear revenue issuance mechanism, intended to distribute protocol revenue to staked users.
Each new revenue distribution updates the issuance rate, issuing the unvested revenue along with the new revenue over the newly specified vesting schedule. The diagram above visualizes the vesting mechanism across revenue deposits.
The first revenue deposit is performed at t0, scheduled to vest until t2 (Period 1, or P1), depicted by the green arrow. On this deposit, the balance change of the contract is depicted by the purple arrow, and the issuance rate (IR1 in the diagram) is set to depositAmount / (t2 - t0).
The second revenue deposit is performed at t1, scheduled to vest until t3 (Period 2, or P2), depicted by the orange arrow. On this deposit, the balance change of the contract is depicted by the purple arrow. Note that this deposit was made during P1. The projected amount that would have been vested in P1 is shown by the dotted green arrow. In order to calculate the new issuance formula, the totalAssets are calculated at t1, which function as the y-intercept of the issuance function. The issuance rate (IR2 in the diagram) is set to (depositAmount2 + unvestedAmount) / (t3 - t1).
The linear revenue issuance mechanism solves the issue of stakers entering and exiting at favorable times when large discrete revenue distributions are expected, getting an unfair portion of the revenue earned. This issuance mechanism accrues value every block, so that this exploit vector is not possible.
The ERC4626 standard helps RDT conform to a new set of tokens that are used to represent shares of an underlying asset, commonly seen in yield optimization vaults and in our case, interest/revenue bearing tokens. Implementing the standard will improve RDT's composability within DeFi and make it easier for projects and developers familiar with the standard to integrate with RDT.
Gypsy will distribute funds on the first of every month. This will deposit the Gypsy tokens in the vault and update the vesting schedule to vest over the following month. The amount of Gypsy distributed will vary based on occupancy and costs of maintenance. Gypsy will announce the dividend payment on the discord and on twitter.
