Introducing veToken Finance: a groundbreaking DeFi platform that will engage the DeFi landscape in a new and unique way. veToken Finance is bringing to market native token VET, all while supporting voting escrow tokenomics projects like Curve and Pickle Finance. With these supported tokenomics projects, veToken will also unleash “veAssets”, which will be locked project tokens utilized to maximize rewards and profit sharing opportunities. VeToken FInance will add value to the DeFi community through a project that encourages long-term token holding, boosting yield and farming rewards, and engagement through DAO governance — all with minimal effort and without sacrificing liquidity. Now, veToken Finance is releasing the veToken whitepaper, providing the foundational insights to one of DeFi’s most exciting new projects.
VET will leverage emerging projects that are utilizing “voting escrow”, a means of incentivizing token holders to lock their tokens for voting and profit sharing. Voting escrow is most notably seen in projects such as the aforementioned Curve protocol, a DAO with control rooted in the CRV token (and it’s locked token, veCRV).
Now, veToken users can take projects such as Curve and Pickle Finance, and lock respective project tokens to receive tokenized veAssets; with the tokenized veAssets, users can yield even greater returns and maximize their rewards. Examples of the locked tokenized veAssets assets can include vetCRV and vetDill, the respective tokenized veCRV token and tokenized Dill token created by veToken Finance.
The veAsset Token
With Pickle and Curve as DeFi starting points, veToken will enable users to stake respective tokens in order to receive protocol fees and boosted PICKLE and/or CRV tokens received by liquidity providers.
The veAsset tokens carry three main traits that drive the project tokenomics: veAsset rewards (locking up veAssets for a period of time to generate rewards), gauge weighting (weighted vaults for reward ratios), and voting (governance implementation for one or multiple gauges). More on these core concepts can be found at Antonnell’s token economics summary here. These means incentivize long-term participation, governance interaction, and community building, while reducing the available tokens available in the market (a deflationary token economics model).
Let’s say you have a supported project token that has adopted “voting escrow” tokenomics — in this instance we will call the project token TOK. Users can lock their TOK to receive and hold the respective veAsset, which we’ll call veTOK. veTOK holders can engage in profit sharing and participate in governance through the respective DAO, however the veTOK is not transferable or sellable.
However, now with veToken, users can tokenize their veTOK assets to receive vtAssets (we’ll call this vetTOK), which can then be staked, sold, transferred and generate rewards similar to those seen with veAssets when staked on veToken. This enables users to generate rewards without locking their tokens. Additionally, should veToken users choose to stake their veTOK, they can engage with boosted profit sharing capabilities without sacrificing liquidity.
Noted that Converting TOK to vetTOK is irreversible. You may stake and unstake vtCRV tokens, but not convert them back to TOK. Secondary markets may however exist to allow the exchange of vetTOK for TOK.
Boosting Farming Yield
Farming seekers can find a home with veToken Finance, too. Stablecoin holders, LP holders, and DeFi farmers can all stake tokens into supported wrapped tokens, and achieve a boost in rewards — all while incurring zero added deposit or withdrawal fees. This tokenomics functionality incentivizes long-term holding and secures added liquidity while keeping the door open
Benefits to the Projects adopted veToken
Let’s use Pickle Finance as example:
Pickle Finance revenue will be increased: Since more PICKLE has been permanently locked, PICKLE in the market is reduced — each individual pJar APY is increased — more users deposit pJAR — TVL is increased, and there is more protocol revenue for PICKLE — more PICKLE permanently locked. This feedback loop directly benefits to the Pickle founding team and Dill holders, as revenue increases.
Existing pJar users + new users can join the veToken finance wrapped pFarms in our dashboard and farm there to share those boosts. All TVL makes its way into Pickle, and makes the Pickle protocol more accessible and profitable for regular users. This benefits both existing DILL holders and veToken Finance.
Unleash more tools within the ecosystem and project in joining Pickle Finance: the contract veToken Finance has built can be used to expand the ecosystem of Pickle Finance, as other projects can build on top of our smart contract in order to initiate more innovation — such as using Pickle assets as collateral assets to create stablecoin or synthetic assets — with the reference of CRV to CVX , Yearn, IronBank to MIM, etc.
The veAsset Governance DAO
veTokens enable holders of tokenized veAssets, such as vetCRV or vetDill, to have a voice in the veToken Finance community. Long-term holders have the ability to vote for governance and protocol parameters, such as gauge weight parameters seen on the Curve protocol, or farm weights seen on Pickle — all by way of governance token VET.
Alongside governance and voting initiatives that come with voting escrow tokens, users also have the ability to stake their VET in order to gain a share of platform profits.
A New Way To Maximize Rewards
VeToken Finance is offering a new and engaging way that incentivizes long-term holding while maximizing potential rewards for users. VeToken wraps assets, like CRV and PICKLE, and provides best-in-class returns — all while maintaining liquidity and furthering platform features.
The veToken platform takes advantage of yield-generating projects all in one place, encompassing voting escrow token economics projects that are becoming increasingly popular across the DeFi landscape.
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 later this year. veToken enables and encourages governance, reward maximization, and liquidity — all in one place, encompassing a multitude of projects.
You can learn more about veToken Finance at our website below, and join the conversation with our Twitter and Discord communities below as well.
Stay tuned for more to come from the veToken Finance team.