Introducing Delegated ve(3,3) — veToken Finance v2 — Part 1

Background:

The competition of holding veCRV

If you are not family with voting escrow, please read here

Why did convex win the war?

Answer: CRV value separation between governance and yield + own governance token incentivize.

Opportunities:

First:

Liquidity and governance are the lifeblood of defi protocols, as more and more defi projects realize that ve-model tokenomics, which essentially merge two populations, LPs and governance token holders via token mechanics, is the right trend for them to move towards. There are an increasing number of defi projects that have started to adopt the ve-model.

Data from veMarketcap.com

Second:

Learning from CVX and Andre’s Solidly exchange, in a long run viewpoint, in order to make such a protocol working with all ve-model projects in the long run, simply using governance token emission for liquidity mining is not a long term and scalable solution that supports ve-model projects as generic protocols.

Third:

veAsset-Asset liquidity pools (LPs) are critical to enable such protocols continuously hounding regular users to lock the veAsset permanently; LP pools should be protocol-owned liquidity to reduce the impact of mercenary liquidity providers carrying out short-term farming practices. This will help maintain the ratio between veAsset-Asset near (1:1), and at the same time will be used as a source of protocol revenue.

Competition:

We did not want to launch a Convex, votium or Bribe to compete with existing projects. As adopting ve-model becomes a trend for existing and new defi protocols, this was designed with the generic protocol which adopts the ve-model in mind.

Solutions:

veToken Finance: A long-term solution for ve-projects, utilizing protocol-owned LP.

The new design works to stay with a few principles:

  • All veToken protocol revenue (income - expenses) will all be located to ve3d stakers — xve3d
  • VE3D emissions by the protocol should backed with veAsset locked value, LP of veAssets — Assets and performance fee from veAssets projects LP Liquidity mining
  • xVE3D (Staked version of VE3D) vote for weight gauges and decide which pools receive VE3D token emissions (besides the protocol fees generated from all LP revenue).

Other Key Points:

  • All xVE3D holder owns the LP token of veAsset-assets and their future profits
  • xVE3D holder owns all the permanent veASSET that are permanently locked by veToken Finance
  • xVE3D holders owns the governance rights to the veAsset that the protocol has locked
  • xVE3D holders own performance fees for the LP token on our yield products

Flow chart:

Here is the CVX model:

Support CRV, cvxCRV for profit yielding, vlCVX for governance on Curve.

CVX model

Here was our first VET model v1:

Expanding the scope to support ve-model projects more broadly: a design to support all ve-model projects, vetAsset for profit yielding, vlvet for governance — a reflection of all integrated ve-model projects.

veToken Finance v1 Token Economics

This is the latest VE3D model:

Designed to support all ve-model projects, vetAsset for profit yielding, locked VE3D ($xVE3D) — for governance across all integrated ve-model projects, and VE3D emission that is based on the owned LP (including the value of veAsset the contract has locked). It is a long-term sustainable solution for ve projects by not utilizing governance token emissions, and instead engage through protocol-generated fees and protocol-owed Lqiudity (without rebasing).

VE3D model
  • Yield aggregator for ve-model projects
  • Protocol owned critical LP (veAsset — Asset LPs)
  • VE3D stakers receive all protocol revenues
  • VE3D natively supports delegation
  • Permissionless support for new veAsset integration
  • Permissionless support for Gauges & Bribes

Reference

1. Convex(Curve) = Curve + 🚀

About veToken

veToken Finance was created in 2021 with the intent of maximizing rewards without sacrificing token accessibility. veToken looks to continue to adopt new voting escrow projects as they come to market, with an expected initial launch date this year. veToken enables and encourages governance, reward maximization, and liquidity — all in one place, encompassing a multitude of projects.

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