Introducing $EXTRA Tokenomics: Boosting DeFi Utility

As the beta launch of Extra Finance is around the corner, we’d like to share our token details with everyone.

I. Overview

Extra Finance is a community-driven leveraged yield farming protocol built on Optimism.

Extra Finance empowers users to engage in a variety of farming pools across Velodrome and other decentralized exchanges. By providing 3X or higher leverage, it allows users to tailor their farming strategies through options such as reinvesting, market-neutral, and long/short farming.

In addition to LYF, Extra Finance also functions as a lending protocol. Users can deposit funds into its lending pools to earn interest on their deposited assets. This feature provides users with a way to earn passive income.

II. Mechanism

Extra Finance uses two tokens to manage its utility and governance:

• $EXTRA - ERC-20 utility token of the protocol
• $veEXTRA - ERC-20 governance token of the protocol

$EXTRA is used for rewarding liquidity providers through emissions.

$veEXTRA is used for governance. Any $EXTRA holder can vote-escrow their tokens and receive a $veEXTRA in exchange.

The lock period (also known as the vote-escrowed period, hence the ve prefix) can be up to 1 year (52 weeks), following the linear relationship shown below:

• 100 $EXTRA locked for 52 weeks will become 100 $veEXTRA
• 100 $EXTRA locked for 13 weeks will become 25 $veEXTRA

The longer the vesting time, the higher the voting power (voting weight) and rewards the $veEXTRA holder receives.

III. Benefits & Utility

By holding $veEXTRA, you can unlock the following benefits and features for $veEXTRA holders only :

1. APR Rewards

The APR rewards are sourced from both protocol fees and $EXTRA token incentives:

• The protocol fee comprises various tokens collected into the treasury. It is used to buy back $EXTRA tokens from the market and then distribute them to holders of $veEXTRA tokens.
• A portion of the $EXTRA tokens allocated to the community will also be assigned to $veEXTRA token holders, subject to a specific emission plan.
• At the end of each epoch, rewards will be claimable.

2. Governance

$veEXTRA is the voting power in Extra Finance’s on-chain governance process. Users could use it to cast for/against community proposals.

3. Utility

• Unlock higher leverage for yield farming pools.
• Gain prioritized access to lending pools which has a higher utilization rate.
• Priority to more coming features and benefits, including the prioritized access to strategy vaults.

IV. Distribution

The $EXTRA token has a hard cap of 1,000,000,000 tokens, with the following allocation:

• 60% (600,000,000) for the community.
• 26% (260,000,000) for ecosystem growth and partnerships.
• 10% (100,000,000) for the team.
• 3% (30,000,000) for airdrop.
• 1% (10,000,000) for initial liquidity.

1. Community

Extra Finance encourages the growth of the protocol by allocating 60% of the total $EXTRA supply to community members who borrow tokens or use leverage in farming-enabled lending pools. This approach helps the demand-side growth of the protocol and provides strong incentives for borrowers and lenders. Through the borrowing activity, the protocol generates additional fees that accrue to lenders and the protocol reserves, supporting a sustainable ecosystem.

2. Ecosystem Growth and Partnerships

To ensure ExtraFinance’s long-term success, 26% of its total supply has been allocated for engaging with key ecosystem participants and protocols. This strategic move fosters mutually beneficial relationships with other players in the space, leading to greater adoption and growth of the platform. This community will drive innovation and explore new use cases for the platform over the long term.

3. Team

The core team receives 10% of $EXTRA’s total supply. This allocation reflects the team’s significant contribution to the development and success of the project. The team members are tasked with overseeing the development of the platform and ensuring its continued growth and improvement.

4. Airdrop

An airdrop will be distributed to liquidity providers in the Optimism ecosystem, ExtraFinance supporters, and early users of the protocol upon the launch of the liquidity pool, including:

• Early Optimism ecosystem users/delegators
• Velodrome LP Users
• Extra Finance testnet users with valid feedback (including part of Galxe OAT holders)
• Extra Finance community OGs
• Leverage yield farming enthusiasts

Further details will be announced in Extra Finance discord channel in the coming days.

5. Initial Liquidity

As part of Extra Finance’s token distribution, 1% of the total supply has been allocated to liquidity providers of foundational token pairs. This allocation is intended to provide better liquidity and user experience from launch day.

More information about our token launch will be revealed in the coming days. To learn more and get the latest updates of Extra Finance, make sure to visit our Dapp and follow us on social media:

• Website: https://extrafi.io/
• Discord: https://discord.gg/extra-finance
• Twitter: https://twitter.com/extrafi_io
• GitHub: https://github.com/ExtraFi
• Email: contact@extrafi.io