vUSD & vETH Emissions Proposal

Elastic Lending powered by Chainlink Oracle

  1. Stop all emissions from Value Vaults effective immediately as their volume compared to what FaaS and Lending will bring monetary wise will never outweigh the growing potential under FaaS upgrades and with Lending on the horizon. The Value Vaults have had a rough time regaining traction and emissions of Value for them is not utilizing the limited resources effectively or wise at this point in time.

  2. Create a new tokenomics for clarity as we have cut Value supply in the past and others will be confused on how we are fully distributed or very close to the end of this period. Team’s amount, earmarked for marketing, exploit IOU amount and how we get there after VIP 10, remaining amount from stopping Vault emissions controlled by the community/DAO.

  3. Increase vUSD/vETH amount through the proposal I will outline below, create a tokenomic chart outlining the details in a transparent way, strategically start marketing with powered by Chainlink and creating incentive pools with the higher volume trading pairs that will be the 1st round batch of accepted LP tokens as collateral and vUSD/vETH trading pairs for everyone to trade increasing circulating supply.

vUSD and vETH increase supply to keep at least 10 million vUSD and 10 thousand vETH remaining in their respective contracts for the 1st rebase event which is not defined nor given out as information. This proposal needs a jumpstart as does liquidity for vUSD and vETH to be tradeable assets on our own platform. I do not have all the answers but want to help provide a general path for the best interest for Value DeFi and the Gov Vault stakers as they are what matters. There will be 2 driving forces towards the Gov Vault and Value pair(s) for liquidity mining incentives. vETH being the under talked but overly sought after asset when implemented will be the most demanding since it will be tied to ETH powered by Chainlink Oracle price feeds.

Targeted pairs to bring over from Uniswap, Sushiswap and Balancer that are considered in the first batch of accepted LP collateral (we need to start bringing or marketing them to be here now and not a month or week before Lending Launches) :

  • wETH-USDC
  • wETH-wBTC
  • wETH-DAI
  • wETH-LINK
  • wETH-VALUE (this will be a more lucrative incentive and driving force of a pair)

To keep supply in check I propose we introduce a couple of pairs in cycles/phases leading up to Lending Launch and finalization of documentation. Ampleforth coined the name geysers for their liquidity incentive program for pairs and what they called “Deep Liquidity” to keep the program alive for 10 years. Not sure we can accomplish a 10 year plan but creating/increasing supply to have deep liquidity for incentive pairs can be to our advantage. By targeting the 1st batch and higher volume liquidity pairs on DEX’s, we bring trade volume and fees generated for Gov Vault but also interest and build up of trust with these liquidity providers to stay here for LP collateral elastic loans.

vUSD and vETH supply increase to have incentives on demand for short term leading up to Lending launch and to sustain liquidity after.

  • vUSD: 25 million supply, 10 million for contract, current in circulation 1.7 million, 3.55 million planned distribution for Liquidity mining/Gov Vault leading up to launch (35% in circulation for 5.25 million), 6 million for incentive pools post launch over x amount of time (40%) and 3.75 million in the Reserve controlled by the community/DAO (25%).

  • vETH: 25,000 supply, 10,000 for contract, current in circulation 1,600*, 3,650* planned distribution for Liquidity mining/Gov Vault leading up to launch (35% in circulation for 5,250), 3,750 in the Reserve controlled by the community/DAO (25%).

Valve Faucet Round 1- I am in favor of giving emissions of vUSD and vETH back to Gov Vault and feel as if vETH majority distribution should be given to Gov Vault and Value liquidity pair(s).

Holiday/Christmas Special:

Start 12/25 or 12/26 depending on place in world

wETH-USDC: vUSD incentives for 28 days, a liquidity lock of 14 days, 50% rewards unlocked immediately and the other 50% vested and unlocked 30 days after incentives run out on Day 28.

200,000 total vUSD for 25,000 claimable per week or 3,571.4 per day. 100,000 unlocked after 30 days past 1/23/21. The community reviews and gets feedback regarding the Valve Faucet Round 1.

wETH-VALUE: vUSD incentives for 28 days, a liquidity lock of 14 days, 50% rewards unlocked immediately and the other 50% vested and unlocked 30 days after incentives run out on Day 28. vETH incentives to start on Day 21 as vUSD incentives have 7 days left, 30% unlocked immediately and the other 70% vested and unlocked 30 days after the 14 day emission schedule of vETH.

200,000 total vUSD for 25,000 claimable per week or 3,571.4 per day. 100,000 unlocked after 30 days past 1/23/21. 200 total vETH starting on 1/16/21 for 30 vETH claimable per week or 4.28 claimable per day until 1/30/21 in which the vested 140 vETH will start to unlock 30 days from end date. The community reviews and gets feedback regarding the Valve Faucet Round 1.

Swap fees are raised to 3% and a 50/50 split for LP’s and Gov Vault; can also have some stem to IOU

vUSD-USDC: vUSD incentives for 45 days, a liquidity lock of 28 days, 50% rewards unlocked immediately and the other 50% vested and unlocked 30 days after incentives run out on Day 45.

300,000 total vUSD for 3,333.33 claimable per week or 476.19 claimable per day. 150,000 unlocked 7 days past 2/9/21.

vETH-USDC: vUSD incentives for 45 days, a liquidity lock of 28 days, 50% rewards unlocked immediately and the other 50% vested and unlocked 30 days after incentives run out on Day 45. vETH incentives to start on Day 38 as vUSD incentives have 7 days left, 30% unlocked immediately and the other 70% vested and unlocked 30 days after the 14 day emission schedule of vETH.

300,000 total vUSD for 3,333.33 claimable per week or 476.19 claimable per day. 150,000 unlocked 7 days past 2/9/21. 200 total vETH starting on 2/2/21 for 30 vETH claimable per week or 4.28 claimable per day until 2/16/21 in which the vested 140 vETH will start to unlock 30 days from end date.

Swap fees are raised to 3% and a 50/50 split for LP’s and Gov Vault; can also have some stem to IOU

Gov Vault emissions with some weight behind it

I propose 695,454.55 vUSD, 2,650 vETH and a continuation of remaining Value emissions from effective immediately stopped Vault emissions be deployed into the Gov Vault leading up to Lending Launch.

Future Valve Faucets planned to distribute in circulation before 1st Rebase:

wETH-wBTC

wETH-DAI

wETH-LINK

wETH-USDT

4 reserved for popular vote based on trade volume and demand

wETH-vUSD

wETH-vETH

Emissions for these total remaining 1,854,545.45 vUSD with 600 vETH for vETH and Value pair(s).

Purpose of attracting liquidity of these assets:

Liquidity is KING and LP’s are for hire and show no allegiance for the majority part but what if we start to build the trust between LP’s and a platform dedicated to incentivize Elastic Lending Loans for their LP collateral and still earning swap fees. As the pairs listed above are some of the highest volume pairs and are also considered to be the 1st batch of collateral LP tokens for Loans. If these LP’s stay throughout the Valve Faucets and see more and more on how Elastic Lending will work, they become accustomed to the locking of their LP tokens and receive their loan in vUSD or vETH. If they want to trade out of their loan, then no problem we have liquidity built up and ready for swaps within the platform. In the meantime traders and speculators have the chance to trade the elastic pairs expecting a rebase event.

In the coming days, weeks, and months I will dedicate research and open to peer reviews/suggestions and discussions on how to make this an efficient launch with many factors and scenarios to play out. I call upon the crypto community to engage this article to build something truly unique within DeFi.