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 below 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.
RDT implements ERC2612 permit approvals for improved contract UX and gas savings.
Testing and Development
Setup
git clone [email protected]:maple-labs/revenue-distribution-token.git
cd revenue-distribution-token
forge updateRunning Tests
- To run all unit/fuzz tests:
make test(runs./test.sh) - To run all invariant tests:
make invariant(runs./invariant.sh) - To run all tests (unit/fuzz and invariant tests):
make test-all - To run specific unit tests:
./test.sh -t <test_name>(e.g.,./test.sh -t test_deposit) - To run specific invariant tests:
./invariant-test.sh -t <test_name>(e.g.,./invariant-test.sh -t invariant_totalSupply) - To run specific fuzz tests with a specified number of fuzz runs:
./test.sh -r <runs>(e.g.,./test.sh -t testFuzz_redeem -r 10000)
This project was built using Foundry.
Acknowledgements
Authors of the EIP-4626 standard, who worked towards standardizing the common tokenized vault use case in DeFi and therefore shaped the interface of the Revenue Distribution Token.
Audit Reports
| Auditor | Report link |
|---|---|
| Trail of Bits | ToB Report - April 12, 2022 |
| Code 4rena | C4 Report - April 20, 2022 |
Bug Bounty
For all information related to the ongoing bug bounty for these contracts run by Immunefi, please visit this site.
| Severity of Finding | Payout |
|---|---|
| Critical | $50,000 |
| High | $25,000 |
| Medium | $1,000 |
About Maple
Maple Finance is a decentralized corporate credit market. Maple provides capital to institutional borrowers through globally accessible fixed-income yield opportunities.
For all technical documentation related to the currently deployed Maple protocol, please refer to the maple-core GitHub wiki.
