The highly anticipated R2 Protocol officially launched its Ethereum mainnet on September 26, introducing two groundbreaking RWA vaults backed by prominent institutions. However, the launch was met with some criticism from users who were dissatisfied with the rewards program requirements.
As the mainnet went live, the Total Value Locked soared to an impressive $121,290, with a growing user base exceeding 154,000 participants. One of the key features of the launch was a rewards program offered to early supporters, where they could receive approximately 100 R2 tokens through the mainnet.
Unfortunately, the rewards program sparked backlash among users who voiced their concerns about having to deposit USDC into the mainnet in order to unlock the rewards. Many users felt misled by this requirement, viewing it as a way to exclude smaller testers or those unwilling to deposit real money.
In response to the criticism, the R2 Protocol team defended their position, stating that every user is guaranteed to receive 100 R2 tokens. However, in order to unlock the tokens, users must first deposit 100 USDC for a period of 60 days, with a 50% Annual Percentage Yield offered as an incentive.
The protocol justified the unlock mechanism by emphasizing the importance of growing Total Value Locked (TVL) to secure better institutional offers and provide greater rewards to early users. Eligible users are those who have completed at least one swap on the R2 testnet and met the basic points threshold to qualify for the rewards.
In addition to the rewards program controversy, the mainnet launch also marked the introduction of two flagship RWA wealth management products: the T-Bills Vault and the Private Credit Vault. The T-Bills Vault, backed by tokenized U.S. Treasuries, offers a 4% net Annual Percentage Yield and is supported by institutions such as BlackRock and VanEck.
On the other hand, the Private Credit Vault is backed by curated private credit portfolios with a target net APY of 9% to 10%, thanks to partnerships with Fasanara Capital Ltd, Mercado Bitcoin, and Apollo. The roadmap for R2 includes the upcoming launch of its native token by the end of 2025.
Overall, the R2 Protocol mainnet launch signifies a significant step forward in the realm of decentralized finance, offering innovative RWA vaults and a rewards program that aims to incentivize user participation and growth. As the protocol continues to evolve, it remains committed to transparency, fairness, and collaboration with its community of users.