Ryu Whitepapers V1.1
RYU is an expansive ecosystem built on top of the Avalanche blockchain. This document will outline our plan for the RYU ecosystem: which is a collection of economically incentivized products that consists of the $nRYU token, derivative token(s), and NFT collections. It will also go into detail about how RYU will boost the surrounding Avalanche blockchain.
RYU aims to provide utility to our collections of NFTs. When RYU Dragon NFTs are purchased in even numbers, the dragons can be used to be bred. When two dragons breed, the offspring is a newly minted generation two (Gen2) RYU Dragon NFT (see below for more information on Gen2 dragons). The Gen2 dragon is a mix of traits from the parent Gen1 dragons. See the Breeding Dragons section for information on how breeding occurs. These RYU NFTs come in two classes: Base and Legendary. There are only 99 legendary dragons and 3234 base dragons that exist for a maximum supply of 3333 Gen1 RYU NFTs. Our genesis mint will occur on the KalaoGo platform.
The main financial motor of the RYU ecosystem is the $nRYU token. $nRYU is a standard ERC-20 token with a 130 million maximum supply, a 1 million circulating supply at launch, and an average of 127,853 $nRYU per day emitted.
The tokenomics of RYU are set to pay inflation to the staking class. This inflation occurs at a rate of 36.57 RYU per day for base NFTs staked. This rate occurs at 96.86 RYU per day for Legendary stakers. Additionally, a second De-Fi vault of 43 million $nRYU will be utilized for LP farm rewards and other reward farms.
Team tokens are a delicate piece of blockchain culture to balance. Our team token amount is 5 million and is distributed to the team at 10% for the 10 months following launch. First Distribution will occur with the community airdrop and follow on the same day of the month moving forward. On March 2nd 2022, each will occur on the same day of the following months after.
The treasury is defined as the RYU team multi-sig wallet, not the De-Fi vaults under contract. In the Treasury, we have a few main categories: Protocol Owned Liquidity (POL), Liquid Funds, and Hedged assets. We plan to hold a majority of POL in the RYU/AVAX LP and a minority of liquidity in RYU/*stable coin* on whichever DEX we launch with. As markets pump and cool, the treasury team reserves the right to flex the POL percentages between the AVAX and stable coin pairing. Shifting POL from AVAX to stables could reduce price changes due to market instability. The Treasury will plan on purchasing NFTs off-market to stake in the pool. Staking in the pool but deferring rewards to other stakers, increases APY for all stakers. Additionally, the Treasury plans to invest in other projects. Yield-bearing assets like xJOE, xORCA, and staked YY all are examples of ways our treasury can diversify and support the ecosystem while hedging the treasury funds.
Breeding works on a points system. Base dragons get 20 points of breeding stamina, legendary dragons get 30 points. Breeding with a legendary burns 20 points, breeding with a base burns 10 points. Once a dragon reaches 0 points, the dragon is done breeding. There is an incubation period for the Gen2 dragons. 33 days is a normal incubation period, on the 33rd day, the Gen2 NFT is revealed with its traits and rarity. Eggs will be tradable before the incubation period is reached. This incubation period can be sped up by using potions. More on how traits will be passed down to Gen2 during breeding as the launch of breeding season approaches.
All Possible Breeding Routes:
A Legendary (30P) can breed 1x with another Legendary (-20P) AND 1x with a Base (-10P) = 0P
A Legendary (30P) can breed 3x with a Base (-30P) = 0 P
A Base (20P) can breed 1x with a Legendary (-20P) = 0 P
A Base (20P) can breed 2x with another Base (-20P) = 0 P
Gen2 dragons can only be created by holders owning two or more RYU NFTs in the same wallet address or purchased on secondary markets. Gen2 dragons have a reward pool for staking. They will receive a currently unnamed and undefined token. There will be more details about this second token, reward pools, and associated airdrop as it gets closer to the launch date. You cannot acquire Gen2 dragons without having two Gen1s. This allows for controlled NFT inflation at the hands of the Gen1 holders. Gen1 holders are incentivized to maintain staking their Gen1 for more RYU after breeding to afford potions (see Potions section for more information). Potions are tradable NFTs that shorten the incubation time in half for your Gen2 egg. Potions shorten the incubation time in half regardless of when it is used.
Rarity, by trait. Our community has made several unofficial ranking sites. rarities.app is one such page.
Legendary dragons in Gen1 are determined by body trait. 33 legendaries exist in each of the Magma, Gold, and Intergalactic colorways
Potions will have a set mint date and will be tradable on secondary marketplaces. A potion can be used 2x only, then it is automatically burned. Different potions may have different effects on breeding, aside from speeding up the incubation period. More to come here.
gRYU and RyuDAO
$gRYU is a governance token that doubles as a reward token for single-sided $nRYU token stakers. This token is created with a 1:10 ratio with the RYU token for Max Supply. Airdrop in a 1:20 ratio for all $nRYU accumulated by Gen1 NFT stakers. DAO Token gRYU allows for voting on proposals and metrics. gRYU is paid to RYU stakers in the single-sided staking pool. When RYU is entered into the pool, it is locked and untradable. This gRYU is paid as inflation from the contract to RYU stakers in the pool.
Once all gRYU is distributed to the community, the RyuDAO will have complete control. The inflation of gRYU can be seen as a timer of sorts to when we hope to achieve DAO-ification. Our intent is to allow gRYU to act as a governance tool in the future of the project and all associated fees. Currently, no sufficient DAO technology is available for the style of on-chain DAO we desire to organize.
Stakes are a commitment. If you break this commitment, you are penalized. If you end a stake less than 50% of the way through completion, you lose all staked RYU. After 50% of the stake is served, the principal investment is safe from loss. Only earned inflation can be lost if the stake is ended early after 50% completion. The closer to 100% completion, the less one is penalized. Once the timer on the timelock stake experiences and the stake is ready for harvest, it can remain staked in the vault without being penalized.
Beta staking will occur between the launch of $gRYU and breeding. To ensure no one is staked for the launch of breeding (which costs $nRYU), we will only allow a maximum of 2-week stakes during beta. Beta staking just reduces the chances a user over-stakes into gRYU and doesn’t then have RYU to pay for breeding. After beta staking ends, stakes will increase in duration to 2-year maximums. More information on beta staking extra rewards and launch soon.
Above is a breakdown of daily inflation from the contract between timelocked stakers and non-timelocked. Timelocked received the majority allocation of inflation. Non-timelocked stakers receive less for assuming less inherent risk.
RyuDAO is a collective of ideas, led by the community. RyuDAO is powered by gRYU. The RyuDAO controls fees that are associated with various parts of the Ryu ecosystem. They also control voting rights on partnerships for marketing and advertising campaigns. RyuDAO will be introduced with the $gRYU token. This token will be the only way you can participate in the governance system of RyuDAO.
Note: These airdrop and team tokens are based on accrued RYU for Gen1 holders being 1,789,954.34 RYU over 14 days between launch of NFT staking and snapshot for $gRYU. These numbers will be adjusted and published once the total RYU earned by Gen1 stakers is at the time of the snapshot. The snapshot will add up the total number of $nRYU each staker has earned since launch. The snapshot bot will then prep the distribution of $gRYU in a 1:20 ratio. $gRYU airdrop will be announced ahead of distribution. Team tokens above are set to 10% of the airdrop supply. We will publish the official amount long before distribution. The vesting period for team tokens will be announced long before distribution too.
This whitepaper outlines through Wave 2 of our roadmap. Wave 3 details will be provided later in Q1 as a part of RYU white papers part two. This will outline our continued thesis of expanding RYU further into unchartered waters of De-Fi on Avalanche. Some of our unique product offerings will truly be a refreshing surprise for tired De-Fi users