Choosing between the ReFi Token or ReFi Pro
Want to buy into Reimagined Finance but unsure whether to buy the $ReFi Token or move USDC into ReFi Pro? — we have put together some information to help with your decision. As always, we have people on hand to answer any further questions you may have in our Telegram Group, you can join here; https://t.me/reimaginedfi
I’m currently a $ReFi token holder, do I need to sell my $ReFi tokens when ReFi Pro has launched?
No, you do not need to sell your $ReFi tokens when ReFi Pro has launched. Here are a couple of reasons why.
- ReFi Pro is an on-chain institutional asset management service primarily suited for institutional investors who wish to invest up to hundreds of thousands or millions of dollars with the ReFi investment team and would not like to be fully exposed to the volatility/price of the $ReFi token.
- Note that ReFi Pro investors do not receive any $ReFi tokens and they do not have ownership of the $ReFi protocol/ecosystem. This means that they will not earn distributions being paid out by the $ReFi protocol. They will only earn from the returns on the capital they’ve invested into ReFi Pro.
- As the $ReFi investment team will focus primarily on low-to-medium risk strategies for ReFi Pro, there will be lower risk tolerance and the $ReFi team will aim for annualised returns of 35–40% on ReFi Pro investors’ capital.
- ReFi Pro investors are also required to pay a 2% management fee and then a 20% performance fee upon withdrawal of their capital from the ReFi Pro platform. The management fees are channelled into the ReFi Treasury, of which $ReFi token holders have an ownership of based on the number of $ReFi tokens they hold, in addition a discretionary portion of the performance fees will be directly distributed to $ReFi token holders in ETH/BNB as per the graphic below.
- On the other hand, $ReFi token holders have exposure to the price appreciation of the $ReFi token (meaning they can earn way above just 20–30% return on their capital), have ownership of the $ReFi protocol/ecosystem, earn reflections from all buy/sell transactions of the $ReFi token and can earn distributions being paid out by the $ReFi team based on the ReFi Portfolio performance and a portion of performance fees as above (on a discretionary basis).
In summary, $ReFi token holders have potentially greater capital appreciation due to price movement of the token, and they also receive reflections and distributions from the $ReFi protocol, whereas ReFi Pro investors do not. Reflections are derived from all buy/sell transactions of the $ReFi token. $ReFi token holders also own a share of the performance fees derived from ReFi Pro. In contrast, ReFi Pro investors do not receive these reflections and distributions.
Why should I continue holding $ReFi tokens? What’s in for me as an existing $ReFi token holder vs. ReFi Pro investors?
As above $ReFi Pro investors simply deposit their USDC into a vault, managed by the Investment Team with an aim of providing a 35–40% return. For $ReFi Token holders, alongside the potential of capital appreciation from the token price, reflections are distributed from the buy/sell tax.
In addition to potential capital appreciation and reflections we are determined to return to paying distributions to $ReFi holders when we can.
Therefore, we recently amended the structure of the ReFi Pro Performance Fees, such that a % of the Performance Fee will now be pooled into a distribution wallet, and sent on to ReFi token holders at select times.
This distribution pool structure provides $ReFi token holders with a third stream of inflow by receiving $ETH/$BNB.
In summary, there are the 4 ways which $ReFi holders can benefit:
1. Potential Capital Appreciation
2. Reflections via trading volume
3. Distributions from ReFi Pro Performance Fees
4. Distributions from the ReFi Farm (At Investment Managers’ Discretion)
Where as ReFi Pro Investors benefit from capital preservation alongside an expected annualised return of 35–40%.
Our weekly Twitter Spaces is always a great source of information, usual day is Thursdays at 10pm UTC and will be recorded — further details can be found here; https://twitter.com/ReimaginedFi?s=20&t=UZc2PDeZ_brb1JcqHIXP3A