Introducing Liquid Lockers & veSDT

The Problem

  • Lock on the native protocol, allowing them to benefit from a small yield and to vote and receive bribes, potentially delegate their boost, but losing liquidity over the asset;
  • Or use a locker, benefit from boosted yield and yield farming, be able to exit with a limited penalty, but lose their governance power and the bribes corresponding.

1. Yield, Governance, Flexibility — Liquid Lockers

  • Maximised yield
  • Liquidity
  • Governance power / access to bribes
  • Cross-chain accessibility

a. How do Liquid Lockers work?

  • Native APR (e.g veFXS APR%)
  • Share of 8% of all the corresponding boosted strats rewards
  • The ability to sell voting rights of the underlying asset (in this case veFXS)
  • The proceeds from selling exceeding boost
  • Additional SDT incentives (this will be temporary and cease over time)

b. Boosted voting power

  • Peter stakes his sdCRV in the reward contract and has no veSDT
  • Paul stakes his sdCRV in the reward contract and also holds 100 veSDT, representing one third of the total supply of veSDT which is at that time 300 veSDT
  • Mary stakes her sdCRV in the Curve Factory pool along with 500 CRV, and owns 100% of the factory pool, benefitting from CRV rewards from the pool

c. Cross-chain Liquid Lockers

2. Strategies

a. Adoption of a Farm & Stake model

b. Optimising the claiming function

c. Decentralisation of Earn & Harvest functions

d. Fees breakdown

  • 8% of claimed rewards redistributed to the respective Liquid Locker
  • 5% for veSDT holders
  • 2% to cover DAO costs and sent to DAO treasury
  • Up to 1% to the harvester

3. veSDT and Curve tokenomics

a. Governance

  • 55% for Liquid Locker strategies;
  • 10% for Liquid Lockers;
  • 10% for Liquidity (ideally not used but kept as a security measure and bootstrapping tool);
  • 25% for the DAO treasury, to be used with flexibility for NFTs, partnerships, bounties, bribes, protocol incentivisation, etc. and would require a DAO vote before they are used.

b. Boosted SDT rewards

c. Vote-selling

d. Fee rewards

4. Liquidity

Migration from Sanctuary and Palace

The Roll-Out

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