Resonate launches this week! Let’s get into the details on what Resonate is and what it can offer to you. All details are also available on our website, Resonate.Finance.
Background on Revest and FNFTs
Current DeFi value locking solutions are inadequate. With currently available value-locking mechanics, effectively tokenizing the rights to complex and less-liquid financial positions is not possible. The Revest Protocol introduces the Financial Non-Fungible Token (FNFT) to solve this issue and to build a stronger DeFi economy; by wrapping those aforementioned complex financial positions into NFTs, the Revest Protocol facilitates their transfer and commercialization via existing NFT marketplaces.
The core innovation offered by the Revest Protocol, upon which Resonate is built, is the concept of FNFTs-as-a-service. Rather than requiring teams to build their own locking system and NFT-rendering system, the Revest Protocol offers readily-accessible hooks to facilitate provisioning FNFTs to any DeFi project in need of them, all without any frontend-development or FNFT-infrastructure required. This allows for positions that have historically been locked to wallets, such as veCRV locks, to be abstracted into ERC-1155 NFTs, which can then be sold on any existing NFT marketplace.
So what is Resonate and what can it do for me?
Resonate is the flagship of the Revest ecosystem. As a video game is to an engine, Resonate is to Revest — both solving some of the greatest challenges in crypto today, liquidity incentivization and treasury management, and giving the Revest Protocol the go-to-market needed to bring about widespread adoption.
Resonate splits apart the interest and principal components of a yield-bearing position. Those who hold tokens which may be deposited into yield-bearing systems can receive an instant, upfront payment on the present value of that future yield, in exchange for locking their tokens. An ideal solution for traders who want to receive guaranteed and consistent yield farming rewards for staking tokens or providing liquidity. For those who want to purchase the Yield Futures, or the rights to future yield, Resonate places them in a position where they can do so at a discount to the expected future value of the interest. For protocols wanting to reduce their burn rate, this discount can offer a better way to incentivize providing LPs.
Benefits of Resonate
There’s a number of good reasons. Let’s start from the perspective of a Purchaser, whose profile is most likely to fit that of a protocol treasury, DAO or enthusiastic long-term investor. These include:
- Align incentives: offer upfront incentives to tame mercenary capital and create positive feedback loops. Leverage Resonate to lock-in liquidity providers, creating benevolent cycles within your ecosystem, all while stabilizing levels of liquidity.
- Regenerate your treasury: pay upfront to secure long-term income. Utilize Resonate to replenish your native token, or perform a synthetic swap and diversify your holdings.
- Reduce your emissions: decrease your burn rate by paying out upfront. Incentivise lockups to offset your existing emissions schedule and reduce sell pressure.
- Leverage your stablecoin farming without liquidation risk: multiply the earning power of your stables by utilizing the leased capital of Issuers.
Now, let’s have a look at it from the perspective of an Issuer, whose profile is most likely to fit that of a retail trader/investor, an institution or a whale.
- Upfront, guaranteed payout: provide liquidity confidently, secure in the knowledge that you’ve already been rewarded.
- Guarantee your interest rate: receive the expected value of future cash flows upfront, ensuring that market conditions are no longer a consideration.
- Protect your portfolio: Take upfront payments as stablecoins to hedge against future market volatility.
- Power resilience to changing market conditions: powered by Revest FNFT technology, positions in Resonate remain liquid throughout lockup, allowing you to take liquidity as-needed on any NFT marketplace.
How about security?
Resonate has been aggressively audited and scrutinized, subjected to BlockSec and Zellic audits, both pre- and post-launch bug-bounties, both whitehat access and next-gen fuzzing tech provided by the security research team PwnedNoMore, and continuous-integration post-launch. Your FNFT is the vault and key to your locked positions. Keep custody and control of your financial future, while earning yield.
The RSN8 token will be released in the future.
Resonate will not launch with a token, nor will it have one in the near future. $RVST will remain the only asset which provides exposure to the adoption of FNFT’s, Revest and Resonate as a whole, for the time being.
$RVST distributes 100% of Revest Protocol revenue evenly between LP and single-asset stakers. Revenue is generated with every FNFT issuance, and claim of interest. Learn more about $RVST here.
Stipulations aside, a $RSN8 token is planned, the governance system designed, the niche of meta-governance decided upon, and more details about this will be forthcoming. Revest Finance believes that early adopters are the core of any protocol and should benefit for their loyalty.