veLVLQ
Last updated
Last updated
veLVLQ uses veToken (3,3) model from Frax Finance, the higher the lock period is, the higher the benefits holders receive while using the protocol. veLVLQ provide the following benefits:
Voting on reward distribution allocation
Boosted rewards
Governance rights
Fee share
Voting on certain protocol changes
Strategy proposal with fee share
Users may lock up their LVLQ from 1 week up to 4 years for four times (4x) the amount of veLVLQ (e.g. 100 LVLQ locked for 4 years - 207 weeks - returns 400 veLVLQ). veLVLQ is not a transferable token nor does it trade on liquid markets. It is more akin to an account based point system that tracks the vesting duration of the wallet's locked LVLQ tokens within the protocol.
The veLVLQ balance linearly decreases as tokens approach their lock expiry, approaching 1 veLVLQ per 1 LVLQ at zero lock time remaining. The amount of veLVLQ received per LVLQ when locking depends on the duration of the lock. This encourages long-term staking and an active community.
Example: If a user decides to lock 100 LVLQ for 207 weeks (4 years), they will initially receive 400 veLVLQ. After one year, due to the constant decay, the user's veLVLQ balance will reduce to 325 veLVLQ then to 250 veLVLQ after two years, after 3 years the balance will be 175 at 4 years (expiry) the balance will be 100 veLVLQ, reaching parity with the amount of LVLQ locked.
The token gives holders different benefits in the protocol. The longer the lock period the higher the benefits are. The existing lock can be extended at every point in time, resulting in an increased veLVLQ balance again. Each account has only one veLVLQ balance, meaning that a user cannot have LVLQ locked for 1 year and another lock for 3 years; all lock are uniform to each account.
