LAYER CAKE PROTOCOL — Update for the Revault Community

We would like to express our gratitude for your patience as we have been working on addressing administrative tasks and devising a turnaround strategy for the Revault Network. Ahead of tomorrow’s AMA, we would like to share with the community an update on the acquisition progress to date as well as the future plans for Layer Cake and Revault Network.

As of today, we have engaged with Ernst and Young on the optimal structure for the acquisition in terms of ease of management, cost and tax considerations. Our lawyers have drafted the agreement and sent it to the team for their comments and signature. This agreement will be subject to the acceptance of the DAO proposal which is outlined below. We are confident that the community and the DAO will accept and embrace the proposals as they are ultimately for the benefit and sustainability of the project.

Introduction:

We understand that the current DeFi space can be siloed and difficult to navigate and that there are many bad actors in the space. Our goal is to consolidate distressed DeFi protocols with the best-in-class technology and passionate communities into one user-friendly and intuitive platform.

LCP’s strategy has a two-pronged approach:

1. Acquisition and Incorporation

Countless DeFi products have been built at the cost of hundreds of millions of dollars of investor money and have ultimately failed due to mismanagement of treasuries and the inability to survive bear market cycles. This represents an opportunity for LCP, as all the IP is sitting dormant as “zombie” products with little to no chance of self-revival. LCP can unlock this value by picking up these isolated building blocks and use them to build the ultimate user-friendly yet ultra-sophisticated platform to consolidate the DeFi market.

LCP’s centralised management approach, focus on quality protocols and user-friendly platform will make it easier for users to navigate the DeFi space, and provide them with a wide range of DeFi products and services under one roof. By consolidating these protocols, LCP can improve the overall coordination, health and image of Decentralised Finance, leading to increased adoption and usage, as well as attracting more retail and institutional investors.

In this instance, LCP will function as a crypto fund that holds a stake of tokens and equity from each of the subsidiaries, and their success is tied to the success of these subsidiaries. The subsidiaries continue to operate semi-autonomously but under the supervision of the LCP management team, which we call “Product Parenting.” This allows the subsidiaries to leverage experienced and coordinated management teams, and take advantage of economies of scale, cost efficiencies, and shared resources in order to conceptualise and successfully implement turnaround or scaling strategies. LCP provides coordinated and centralised marketing, community management services and acts as a centralised lender of funds to subsidiaries for development and strategy roll-out.

2. Aggregation of Products under one roof

By utilising the existing Revault interface with aggregated and ranked DeFi products, we will continue to add additional products through APIs to other projects and products. The Reva token will remain the lifeblood of the protocol, but with adjustments to the tokenomics to optimise for the new strategy. Users will have access to a full suite of DeFi products under one roof, including single and multiple asset staking, LP farming, yield aggregators, stablecoin strategies, P2P lending and borrowing, and investing in DeFi funds — aggregated and ranked in the traditional Revault format.

The first step is to incorporate additional products into existing Vaults and increase the number of Vaults. The medium-term goal is to become the leading aggregator on BSC and Fantom by incorporating all products that meet risk criteria. Revault’s vault maximisation strategy will be utilised and its auto-rebalancing function will be built out to optimise user experience and yield. A portfolio dashboard will be added so users can see at a glance, the products that are invested in, balances and P&L as well as a search bar widget for easy navigation.

We also plan to prioritise bridging to Ethereum and incorporating ETH products onto the platform. Ethereum has the largest TVL and trade volume, making it critical to Revault’s strategy to onboard treasury managers, funds, and DAOs — sophisticated money managers seeking a one-stop-shop for accessing a wide range of DeFi products and services with risk mitigation and centralised management. These customers have higher technical and financial knowledge and are looking for a platform that provides them with effective investment management tools and resources.

Summary of benefits for the users include:

• Risk mitigation through an intensive due diligence process to ensure the protocols on the platform are of high quality and have a strong chance of success.
• Convenience of having all DeFi needs met on one protocol, rather than having to navigate multiple platforms.
• The opportunity to breathe new life into existing token holdings that may have been affected by market conditions, mismanagement or rug pulls in the past.
• Improved overall coordination, health and image of decentralised finance leading to increased TVL and trade volumes.
• Automatic vault rebalancing feature.
• Access to DeFi fund managers for a ‘hands off’ investment approach, in a trustless environment.
• Portfolio dashboard to see at a glance the products that are invested in, balances and P&L.
• Better navigation through indexed and ranked DeFi assets, per category and across multiple chains.
• Access to advanced features, reduced fees and yield boosters with NFT series release.
• VIP Investor chat for the most loyal users.

Additional future features that could be added to the platform include:

• An Education Center to provide resources and tutorials for users to learn about DeFi and the different products available on the platform.
• A copy trading service, allowing users to copy the trades of more experienced traders or fund managers.
• Financial planner or investment strategist services to provide personalised advice and guidance for users to optimise their investments and strategies.
• VIP room for exclusive access to premium features.

DAO Proposal:

The Revault DAO proposal aims to address the current status quo of the Revault protocol, where the foundation wallet does not have sufficient balance to maintain the ongoing development of the protocol or to cover ongoing operating expenses. The protocol’s revenue generation is not sustainable and will require fundamental changes in order to rectify this.

The proposal includes the following objectives:

Onboarding CTO and developers to build out additional BSC products and maintain existing products

Onboard Community managers and Marketing and Sales teams to improve communication and onboard money managers.

Expanding to Ethereum and onboarding ETH vaults and products.

Adjusting the tokenomics to provide additional revenue generation to cover ongoing expenses.

Proposal 1:

In order to roll out the above proposal, it is estimated that it will cost around $200k. It is proposed that 700,000 Reva is transferred from the Treasury wallet to the Foundation wallet to be used to incentivize and onboard developers. These tokens will be offered to the new core team members and spread over a 2-year period on a sliding scale. These tokens will be in addition to BUSD sourced from funding and grants. The Foundation wallet will have 3 signatories, being Matt Rich, Mati Greenspan, and new CTO (to be confirmed), and will require 2 of 3 signatures to transact.

Proposal 2:

Adjust the protocol fees as follows:

Current:

30% of the profits will convert to REVA upon collection.

100% of the active vault native token will convert to REVA upon collection.

1% of the profits will be distributed between all REVA stakers.

Any REVA transaction will have a 0.25% tax that will distribute as follows:

• 25% will burn.
• 25% will go to the treasury.
• 25% will be redistributed between all REVA stakers.
• 25% will be distributed to REVA Liquidity Providers.

Proposed:

Vault Profits:

20% of the profits will convert to REVA upon collection

Platform Fee increased from 1% to 10%

• 8% of the profits will be paid to the Treasury Wallet in active vault native tokens
• 2% of the profits will be distributed between all REVA stakers.

100% of the active vault native token will convert to REVA upon collection.

Reva Transactions:

Will incur 4% tax that will be distributed as follows:

• 1% will burn.
• 1% will go to the Treasury.
• 1% will be redistributed between all REVA stakers.
• 1% will be distributed to REVA Liquidity Providers.

This change will increase revenue generation and provide for the ongoing operational expenses of the platform.

It is important to note that this proposal is still fluid and it is critical to us that the community is consulted and that before any decisions are made, the community has an opportunity to add any constructive feedback.

We look forward to hearing from you all tomorrow.