The time has come to test thy courage. A new world awaits, undiscovered and unexplored. The mysteries of the unknown beckon for a new beginning and ye have been chosen! Chosen to usher in a new era of peace and prosperity.
The time has come dear Ludwig,
Reliquary is here; a brand new primitive waiting to be explored.
As with all systems, adaptations take place, iterations come and evolutions unfold. Change is a part of the process and creates space for new and exciting opportunities.
The key to growth is to recognise when it’s time to move on, to let go of what no longer works and embrace new beginnings. To be open to change, to allow it to shape the future and to learn. Improve.
Building off of the shortcomings of the past, Reliquary unlocks an exciting new avenue for users to earn yield and participate in a fairer, more democratized governance system.
Where do we start?
As with any new endeavour, getting started can seem like an impossible task.
With so much to unpack, understanding the intricacies of Reliquary can be daunting. Putting in the time, energy and effort to be able to comprehend the profoundness and beauty of this new initiative is essential for all aspiring Ludwigs, and we are here to make that process simple and easy.
We have compiled this article to be your one-stop-shop for understanding all things Reliquary.
An information hub for what Reliquary is, how it works and how you can get the most from your experience.
This is the ultimate Reliquary guide. Everything. Everywhere. All at once.
Users can harness this article as the base layer hub of Reliquary information. A collection of Reliquary articles, all piled into one. Discover the problems this new technology solves, the creative opportunities it opens up and the beauty of the future it envisions.
If you wish to skip to a specific section, please check out the glossary below:
Section 1: A DeFi Dilemma
- An inherent DeFi problem
- The MasterChef
Section 2: Rise of the Relic
- The Relic
- An evolution of the MasterChef
- Maturity reward distribution
- Maturity Impact
- An alternative to Locking
Section 3: Revel in maBEETS Relic
- Maturity Adjusted BEETS
- maBEETS Maturity Curve
- Maturity Impact on voting power
- Maturity Impact on BEETS rewards
- BEETS Relic NFTs
Alright, without further ado — Let’s make some MUSIC!
SECTION 1: A DeFi Dilemma
An inherent DeFi problem
We start at the beginning.
Developed by the technical wizards known as the Byte Masons, the Reliquary arose as a solution to an inherent problem within DeFi. A problem that has plagued the industry from its conception: Mercenary Capital.
One of the most widely utilized contracts in DeFi is something known as the MasterChef. Created by SushiSwap, the contract has become a vital part of DEXs far and wide. A game changer for sure, but why?!
The MasterChef has allowed DEXs to not only offer rewards in terms of swap fees but also additional Liquidity Mining incentives. All those extra token rewards, all those lucrative APRs come down to this revolutionary contract. It has played a critical role in the evolution of the space as a whole.
So, how does it work?
It’s simple really. Users enter a pool, stake their LP tokens and earn additional rewards. The amount of rewards earned is dependent on the size of the staked position, with larger position sizes earning a greater fraction of the pool’s rewards.
Revolutionary! Magical! But is it sustainable? Let’s assess.
A byproduct of this contract innovation has been the rise of capital that never really “sticks”.
The tendency observed is that once these attractive yields dry up, liquidity providers often leave in search of greener pastures. With new tokens spun up on demand, highly inflationary and highly lucrative APRs continue to sprout up across the industry. A cycle of mercenary capital is initiated as capital leaves a platform for more lucrative opportunities.
Freedom and liberty, right?! 100%. Users are well within their right to move as they see fit. Capital will go where it’s treated best. But there’s no denying that Mercenary capital can create an unstable environment for a project to thrive.
Over long time horizons, the effects of liquidity mining programs tend to be more harmful than good. Without sustainable systems, protocols face a very real challenge of longevity.
In an ideal world, a balance must be struck. Harmony must be found. So have there been any solutions?
Renowned and revolutionary, the ve locking model proliferated through the DeFi landscape. Pioneered by Curve, vote escrowed (ve) tokenomics were designed to attempt to align the user with the protocol. Or perhaps better put, to mitigate the ability of users to engage in mercenary capital pursuits. How does it work?
The veModel forces users to lock up capital positions for extended periods. Why?
Users who do so earn a boost in liquidity mining rewards and unlock governance voting power. Users can’t leave if their capital is locked. While it certainly (although still questionably) succeeded at reducing a portion of the would-be outflow of capital, was it truly successful? Locking forged a dynamic that puts users at risk without the freedom to readjust exposure.
Quite simply, the veModel cultivated a culture of entrapment. Sure; for whales that hold large amounts of capital, locking tokens is easy; they can write the capital off and secure a large portion of increased emissions and governance. But is this true for everyone? Are all users happy locking away their precious capital? We don’t think so.
Check out this full article breaking down the shortcomings of the locking model:
SECTION 2: Rise of the Relic
On the precipice of evolution, we arrive at a solution.
The Reliquary is an innovative primitive that offers an evolution of the MasterChef contract as well as an alternative solution to the shortcomings of the current vote escrowed model.
Building from the MasterChef contract, the number of rewards emitted for a position is not only based on the size but also the age or ‘maturity’ of the staked LP.
Additionally, through the use of financial NFTs, the Reliquary offers users the freedom and flexibility to enter a governance position without having to lock any capital away.
An evolution of the MasterChef
The underlying fundamentals of the MasterChef contract are ingrained within the Reliquary; users stake a position (now called a deposit) to receive additional liquidity mining rewards. With the Reliquary, however, rather than a position being tied to a wallet address, users receive a receipt token in the form of a financial NFT, known as a Relic. The Relic keeps track of users’ pending rewards, the number of LP tokens deposited and a powerful financial concept known as maturity.
Maturity? Instead of streaming the majority of rewards directly to the users who first enter an LP position, the Reliquary emits incentives across multiple maturity tranches. Huh?! In simple terms, rather than rewarding the users who first enter a position with the greatest amount of incentives at the offset of the farm, it rewards users who stay in the position for longer durations of time. The longer users participate in the protocol, the greater the incentives they can receive.
The core concept behind maturity is about finding a middle ground between the user and the protocol. Rather than forcing users into a position that they are controlled by, the Reliquary is a symbiotic system that offers the freedom to be sustainable, profitable and fair.
Sustainability and longevity are essential, and this new maturity model provides the base to build from. Rather than locking tokens away, the Reliquary persuades users / DAOs to earn additional incentives/governance power by cultivating a position that grows over time.
Maturity is broken down into various levels, each of which corresponds to differing reward distributions. As users approach a higher level of maturity, they gain access to increased amounts of liquidity mining rewards until the maximum level of maturity is obtained.
The Reliquary is a new contract that provides a base layer for protocols to integrate and build from. All protocols that implement the technology are free to design specific maturity curves they feel will best suit their circumstance.
How about some examples?
The simplest maturity model would be linear, in which users receive rewards that increase in equal amounts each week until reaching maximum maturity. The Relic’s age and maturity profile are in a direct positive correlation with one another, evident in the straight line below.
Alternatively, protocols could implement an exponential maturity model. Rather than increasing linearly, the maturity profile showcases an exponential curve with users’ rewards suddenly increasing past an inflexion point.
The above are just two examples of possible Maturity models. The Reliquary contract is open source; any protocol that implements the technology has free reign to design a unique maturity profile. Let’s dig a little deeper into the technicals around how maturity tranches and rewards function in this model.
Maturity Levels and Reward distribution
There are two vital questions to ask in order to understand how rewards are distributed in relation to maturity levels.
1. What specifically is maturity?
The maturity of a position is defined as the number of seconds elapsed since the position's entry. Protocols are then able to implement specific maturity requirements/levels (in seconds) in which users must reach for their allocation of rewards to increase.
Maturity = blockTimestamp (seconds) — entryTimestamp (seconds)
2. What does maturity actually do to the underlying position?
Each time a new maturity level is achieved it boosts the underlying position and therefore the rewards it receives compared to the previous level.
Whereas the MasterChef contract distributes rewards to positions solely based on the fraction of a user’s share of the total pool balance, the Reliquary also takes into account the time that position has been held, and the boost the underlying position receives.
For more technical information, our developer wizard Skly runs through exactly how maturity is calculated with step-by-step instructions in the factual and helpful article below.
Reliquary — The new chef in town?
A look into the new creation by the Byte Masons — Reliquary. Is it a better Masterchef? Let’s find out!
So far, we’ve learnt that maturity is dependent on the time a position has been held.
So what happens when you deposit into an already active position? Let’s think. Which way does time move? It makes sense that anytime a new deposit is added to an already active position, the maturity (time since the deposit) decreases.
Meaning? For each deposit into an active position, the position will always experience a maturity impact. The overall maturity of the position will decrease. However, instead of the positions Timestamp resetting at 0, the Reliquary takes a weighted average of a user’s new position size relative to the initial entry.
The greater amount a user deposits into an already active position, the greater the maturity penalty the position incurs. If this maturity impact takes it back below the current maturity level, the position’s rewards will decrease alongside it.
A general rule
A general rule for depositing is that if a user has a Relic with a balance of 1000 LP tokens and they deposit 10 more, the maturity will only suffer a 1% penalty. On the other hand, if users have a relic that only has a balance of 10 LP tokens and deposit 1000 more, the maturity will suffer a 99% penalty.
Check out this article by the Maestro, Franzns to see the full effect and underlying math of maturity impacts:
Not just a pretty picture
This article is all about the pretty pictures within Reliquary. But first, let’s recap what we already know:
So are users stuck with never-ending maturity impacts? Not at all. Users aren’t limited to only depositing to already active positions, in fact, unlike the MasterChef contract, users can mint as many relics as they like. This comes down to one fundamental difference:
Staked positions are not bound to a wallet address but rather to an NFT.
Rather than receiving an LP token as a receipt of a staked position, users receive a financial NFT known as a Relic.
As the position is tied to the NFT and not the wallet, the user is free to create as many positions as they wish with that one wallet. Whenever a user deposits assets into a Reliquary farm they can choose whether to mint a new Relic or add to an already existing position. Users are free to mint as many Relics as they wish, with each one starting from the base level of maturity.
NFTs are a beautiful homage to creative artistry, intertwined with finance, they create something rather special. Free and flexible, a composable NFT receipt opens the doors to secondary marketplaces as well as the possibility of integration into lending protocols.
Whereas due to a reduction in liquidity, the current financial NFT market has seen secondary sales trade at a discount, Reliquary’s maturity mechanism will likely see second-hand NFTs trade at a premium. Why?
Time is valuable. As a position’s rewards are dependent on time duration, the market will likely price mature positions higher than an immature position of the same size.
Besides creating new positions, users can also transfer, merge and exit Relics. Here are some of the features that the underlying Reliquary contract allows for:
Note: These actions are currently only available through direct contract interaction.
- Users can split one Relic into two. This will mint a new Relic and deposit the specified split amount into it. It inherits the maturity of the original Relic.
- Users can merge one Relic into another: This will burn the merged Relic and add its balance to the other relic. The maturity of the other relic will be impacted based on the maturity and the number of LP tokens in the merged Relic.
- Users can shift LP tokens from one Relic to another: This will shift the specified balance from one Relic to another. The maturity of the receiving Relic will be impacted based on the maturity and the number of LP tokens in the sending Relic.
Whilst a deposit always results in a maturity penalty, a merge or a shift can actually result in a maturity boost if the merged or shifted position has a higher maturity than the receiving relic. Unbound and playful, the Reliquary is a shining example of programmable creativity.
Check out this article to get the full rundown:
Not just a pretty picture
This article is all about the pretty pictures within Reliquary. But first, let’s recap what we already know:
An alternative solution to locking
One key factor that also sets the Reliquary apart is that besides reward distribution, the Reliquary can also distribute voting power for governance tokens.
A Mature Governance model
The Reliquary is not only an evolution of the MasterChef contract but also a promising alternative to the locking model.
Rather than forcing users to lock their capital away, the Reliquary persuades users to cultivate a position over time. The ability of a user to impact protocol governance is then directly tied to the time they have been a participant in the protocol. And unlike locking, users have full freedom to remove their capital and exit a Relic whenever they wish.
This new system is essentially the reverse of the vote escrow(ve) model; voting power is no longer dictated by how long users are willing to lock tokens for, but instead by how long they have been a participant in a protocol. Voting power can utilise the same maturity curve as token reward distribution or implement a unique one.
The Reliquary offers users the freedom and flexibility to build sustainable positions over time that align users’ incentives with the desired outcomes of the protocol in a more wholesome manner. Users can enter an ecosystem, and engage in governance, without being constrained to lock away capital.
SECTION 3: Revel in the maBEETS Relic
When considering the potential future of fBEETS, locking was proven to be outdated and consequently demanded that we step outside the norm to seek more innovative solutions. Reliquary stood as a promising solution for the future growth of not only our protocol but the community at large.
We have chosen to initially implement the technology for our governance position — fBEETS. This will see the fBEETS token harness a maturity system that distributes both maturity-adjusted voting power and BEETS rewards.
An innovative and creative new playing field. Reliquary takes the BEETS ecosystem up a notch. With the technology seamlessly integrated into the backend, the front end is what makes it really POP. Participating in a futuristic new yield and voting distribution primitive has never been simpler, but let’s go under the hood and explain how it all fluently comes together.
There are 4 key areas to the Reliquary implementation.
- Fresh Beets Pool
Fresh Beets Pool
Unlike other protocols that utilise single staking for protocol governance, Beethoven X incorporates a far more efficient mechanism. Harnessing the flexible Balancer tech stack, Beethoven X governance operates via an 80/20 BEETS/FTM weighted pool.
Why an 80/20 pool?
- Deeper liquidity — BEETS staked increase the liquidity of the token, rather than reducing it.
- Hedging and price appreciation relative to FTM.
- Efficient incentive program.
- Asymmetric upside potential.
This specific pool is known as Fresh Beets, with an underlying LP token called fBEETS.
Funkadilicallly fresh, fBEETS is the LP token of the Fresh Beets Pool. fBEETS no longer carries voting rights nor the ability to earn additional BEETS incentives. It is simply the receipt token of the Fresh Beets Pool.
Innovative, evolutionary and promising. Harnessing the power of the Reliquary, users’ fBEETS tokens are activated once deposited into the Reliquary contract. The technology unlocks the positions underlying voting power and BEETS rewards and boosts them in relation to maturity. Users also receive a financial NFT that serves as a receipt token for the position.
maBEETS (Maturity Adjusted BEETS)
Magical, mystical, marvellous. maBEETS are an evolution and progression into the unknown. Users who deposit their fBEETS into the Reliquary unlock the ability to earn maturity-adjusted voting power and BEETS rewards. As a position matures, the underlying fBEETS are boosted into an increasing number of maBEETS relative to the maturity curve. The BEETS Relic is what tracks a users evolving maBEETS position.
Note: Users have the freedom to exit their maBEETS position at any time; however, doing so will reset the position’s maturity back to 0 if they decide to re-enter that same position.
Shifting to a Reliquary reward distribution model
As we pioneer the journey to a new, unexplored realm, an initial hurdle had to be overcome. Upon the creation of the BEETS token, the Masterchef was set as the sole owner of the BEETS contract and is still the only contract that can mint new BEETS tokens. To enable BEETS rewards to flow to the Reliquary, a solution was found in the form of a ReliquaryBeetsStreamer contract.
Dive into Franznz article to find out more:
From chefs to relics
As an alternative to locking fBeets, the community at Beethoven X has decided implement Reliquary for fBeets which was…
maBEETS Maturity Curve
Let’s jump into the details! The underlying maturity curve determines both the voting power and BEETS rewards a position harnesses relative to the time held. maBEETS utilises one curve for both reward distribution and voting power.
Even though users have the full freedom to exit a position, upon deciding on the full duration to maturity, analysis proved that most DeFi lock durations are far too long. To ensure a middle ground between protocol and user alignment, while also further incentivizing the potential of secondary marketplaces, we choose a maximum maturity duration of 11 weeks.
To ensure there is always the incentive to mint a Relic, there is a period of high growth upfront. This then slows to provide a checkpoint in which users can consider their position and potentially look to the secondary marketplaces instead of withdrawing. The end of this slow growth period could create an opportunity to sell relics on the secondary market at a premium.
Our financial maestro souvlaki breaks down the full decision-making process in this informative article:
Essentially, this maturity % translates to the underlying boost your fBEETS position experiences (This boost is shown directly on the front end).
maBEETS are the boosted version of fBEETS that scale alongside maturity. The longer a position is held, the greater the underlying fBEETS are boosted. It’s this boost that unlocks additional rewards and voting power.
Week 1 = 4% maturity
Week 7 = 50% maturity
Week 11 = 100% maturity
Maturity impact on voting power
As a user’s position increases in maturity, it boosts the underlying voting power relative to the maturity curve. Whereas previously, 1 fBEETS was equal to 1 vote, users will have to wait till week 11 before achieving this same relationship. Here is a simple overview of how fBEETS scale into maBEETS for voting alongside maturity:
100 fBEETs at Week 1 = 4 maBEETS
100 fBEETS at Week 7 = 50 maBEETS
100 fBEETS at Week 11 = 100 maBEETS
Maturity Impact on farming rewards
maBEETS are the maturity-adjusted fBEETS that a user holds. Upon entering a maBEETS position, users receive an NFT receipt token that tracks these underlying Maturity Adjusted BEETS. These maBEETS scale up in relation to the maturity curve. As the maBEETS increase, the amount of rewards distributed to the position increases too. Here is a simple overview of how fBEETS scales into maBEETS alongside maturity:
100 fBEETs at Week 1 = 400 maBEETS
100 fBEETS at Week 7 = 5000 maBEETS
100 fBEETS at Week 11 = 10000 maBEETS
Pretty simple so far. Let’s now go under the hood of how the maturity-adjusted BEETS rewards are distributed. As can be seen from the curve, there are 11 maturity levels. BEETS rewards are distributed in different proportions across these levels. The total rewards are distributed to each level based on the total number of maBEETS that reside there. Huh?! There are 3 key takeaways here.
- Each new maturity level results in a boost in the number of fBEETS that receive rewards. (maBEETS increase)
- Total BEETS rewards are divided by the total number of maBEETS, resulting in an average reward per each maBEETS.
- This average reward is then applied to the number of maBEETS a user owns
Users BEETS rewards = (Total BEETS rewards / Total number of maBEETS) * The number of boosted maBEETS a user owns
Let’s make it even simpler with a case study.
Let’s say a user holds 100 fBEETS. How many BEETS rewards would they earn in each separate level? Using the parameters below, we can map out an example.
Total BEETS rewards going to Reliquary farm: 10,000
Total number of fBEETS in the Fresh Beets farm: 1100
Total number of maBEETS: 57,800
Number of fBEETS a user owns: 100
The image below shows a mapped-out reward distribution if this user held 100 fBEETS in each separate level.
As you can see, users who stay in the Relic position for the full duration can end up with a boost in rewards far higher than the usual base rewards for previously holding fBEETS.
Dive into a complete case study with the financial maestro, souvlaki:
BEETS Relic NFTs
Upon the creation of a maBEETS position, the user receives a financial NFT as a receipt token of their position — a Relic. This NFT holds all the information regarding a user’s position. And as the position is directly tied to the NFT, not the user’s wallets, it opens up a plethora of flexible opportunities:
- Fully Liquid Position — Ability to exit at any time
- Gamified evolving NFT — Level up, and unlock increasingly more powerful NFTs.
- Transferable position — Transfer, merge, shift and split positions.
- Secondary markets — Harness secondary markets in which mature positions can sell at a premium
Just like a staked position, a maBEETS position is fully liquid. Users have free reign to remove their underlying BEETS and FTM at any time.
Creativity is a core philosophy of Beethoven X, and the Reliquary was an opportunity for Vee’s design visuals to shine. As a user’s position grows and evolves, so does the maBEETS Relic. Each week, the NFT unlocks the ability to physically evolve alongside maturity. Users can track, view, and scroll through all their positions directly on the UI. The whole process is fluid to follow in the maBEETS section of beets.fi.
There are 11 levels in total, and these are shown below:
Levelling up is a seamless and simple process. Users can level themselves up directly on the UI every time their maBEETS Relic has reached a new maturity level. The duration to the next qualifying maturity step is shown directly on the maBEETS page. Levelling up is a super simple process and only requires the minimal cost of FTM gas to do so. However, to ensure that users do not miss out on levelling up, Beethoven X will also automatically level up positions that are 3 days past the minimum level requirement. We will call this function daily.
Just like any NFT, users are free to mint multiple positions and transfer the underlying ERC-721 tokens to any wallet. Additionally, some additional functions can be called. These cannot be done directly on the Beethoven X UI — they will require direct contract interaction.
- Split one relic into two: This will mint a new relic and deposit the specified split amount into it. It will inherit the maturity of the original relic.
- Merge one relic into another: This will burn the merged relic and add its balance to the other relic. The maturity of the other relic will be impacted based on the maturity and the number of fBeets of the merged relic.
- Shift maBEETS from one relic to another: This will shift the specified balance from one relic to another. The maturity of the receiving relic will be impacted based on the maturity and the number of fBeets of the sending relic.
Maestros, we weren’t lying when we said:
“The Ultimate Reliquary guide. Everything. Everywhere. All at once. “
Ultimate is an understatement, this thing is an absolute beast. There’s more information packed into these pages than anyone has any real need for — it’s comprehensive to say the least.
Reliquary is brand new and it comes with its own little quirks and quarks. There is so much to learn and this article is there to serve you always. Think of it as your very own Reliquary library.
As we move through the next phase of implementation and adoption we’ll be constantly circling back to this database for authoritative content on the what, where, when and how’s of the mystical Reliquary.
With all this content we still haven’t addressed the mighty elephant in the room: WEN REL?
Well, Maestros, today is your lucky day — Reliquary will be launching on the 1st of March at 12:00pm UTC.
BOOOOOF! We dropped the bomb!
The game is officially on and things are about to get really interesting. Reliquary is gracing the stages for the first time and with it comes unexplored opportunities never seen before in DeFi. It truly sits on the frontier of innovation and we’re so excited to be a part of and bring in a new future for the community and the protocol.
Before we end this epic journey of an article there are a couple of key points to get across.
- The UI for the Reliquary will officially launch on the 1st of March at 12:00pm UTC.
- Current emissions to the Fidelio Dueto pool will stop and move to maBEETS at the same time.
The rest is history!
Sit back, relax and enjoy the journey into a realm unexplored. The Reliquary is here Frens and the time is NOW!