We’re a couple days away from the launch of our first actual product — plsAssets. The concept of plsAssets is simple and familiar yet incredibly powerful, as it aggregates the governance power of Dopex and Jones behind $PLS. We’re also introducing a significant upgrade to $PLS through a brand new mechanism, which leads to higher rewards for lockers. The incentives are aligned in an entirely unique way, where all ecosystem participants and Plutus users benefit.
We’re in the business of building +EV products and advancing the ecosystem forward, and the first step to that is the release of plsAssets. This article is designed to be a step-by-step product guide to help you navigate plsAssets. To finish things off with, we’ll explore some of the exciting implications Plutus’ launch has on the Dopex ecosystem.
To get proper context, if you haven’t had a chance it’s recommended to catch up on Plutus basics here and here. The articles go over why aggregating governance is important and valuable and take a deep dive into $PLS tokenomics. If that’s all familiar to you, feel free to jump right in!
How To Utilize plsAssets
For the sake of simplicity, plsAssets are effectively wrappers around the DPX and Jones tokens. These wrappers enable them to be staked into Plutus, effectively earning multiple layers of yield and aggregating governance power. Once veDPX and veJones are live, plsAssets will essentially be supercharged and liquid versions of veDPX and veJones.
plsAssets are converted by depositing DPX or Jones-ETH LP tokens into the protocol. They’re always converted 1:1 — using one DPX to convert would net you one plsDPX. Using one JONES-ETH LP token to convert would net you one plsJones. The interface for converting can be seen below.
Do note that the converting process is irreversible — however, we will have plsDPX-DPX and plsJones-Jones-ETH LP token liquidity pools set up a month after launch, which enables you to trade assets both ways. Any and all assets used to convert plsAssets are forever locked in Plutus and max-locked in their respective protocols. This acts as a supply sink — those tokens will never be on the open market again.
Converting and staking plsAssets has several immediate benefits for the end user. A user staking plsDPX or plsJones will receive significantly higher yield than they would simply staking those assets in either Dopex or Jones native single-staking farms. The yield is composed of four different layers, broken down below. In this example plsDPX is used, however plsJones yield structure is similar with some differences in reward weights.
Note that emissions and single-sided staking rewards begin streaming immediately and productive treasury fees will begin streaming starting epoch 1 (we’re currently in epoch 0, which started when PLS locking closed.) Please refer to this article for more details and a full breakdown of tokenomics and fees.
It’s important to note that once veAssets (veDPX and veJones go live), the yields will most likely be even more lucrative for the end user. Dopex has communicated that veDPX lockers and other parties that do work for the ecosystem (options writers etc.) will receive a significant amount of their emissions. In addition to emissions, we can expect Dopex to start earning significant fees through IROs, Atlantics, veDPX getting a share of rDPX bonding revenue and more. Through Plutus a user will get near similar yields as if they’re staking max-locked veDPX or veJones while still retaining a liquid stake due to having the option of swapping in the plsDPX-DPX liquidity pool.
IMPORTANT: Tokenomics Update
As a core update to $PLS tokenomics, we’re introducing a 12% fee on the rewards that plsAsset stakers earn from the single-sided staking on both DPX and Jones (later on veDPX and veJones). This fee will go to the Plutus treasury.
The introduction of a fee only minimally affects the returns for plsAsset stakers, which are composed of $PLS emissions, productive treasury yield, single-staking rewards and revenue generated by Jones LPs on Plutus. Despite Plutus taking a 10% fee on single-staking rewards, the total APR for plsAsset stakers will still be extremely lucrative and significantly higher than the native asset single-staking option.
For example, let’s assume a $DPX price of $700 and a DPX single-staking yield of 26%. With a total of $1M worth plsDPX staked, taking into account $PLS emissions ($PLS price of $0.405) and productive treasury yield the total APR for plsDPX stakers would be approximately 237%. With a fee the yield is approximately 234.5% — a negligible difference.
NOTE: This figure is an estimate based on our models and will be lower once more DPX enters the pool.
How Does Plutus’ Launch Affect The Ecosystem?
Plutus launching has multiple immediate effects in addition to some second-order effects on the entire Dopex ecosystem. The most noticeable effect will be enabling users to earn significantly higher yield on their DPX and Jones assets than they previously could. From the perspective of the entire ecosystem, significant amounts of Jones and DPX will be locked away in Plutus forever due to users converting plsDPX and plsJones. This will induce scarcity for both Dopex and Jones. For complete context, it’s important to remember that the governance power of both protocols will likely be coveted in the future. To recap on why aggregating governance is valuable, please revisit this article.
Even though our focus has been entirely on the Dopex ecosystem so far, with the mass adoption of veToken tokenomics looming on the horizon — much closer than most believe — we’re keeping our head up and staying reactive to the future trend. To maximize the value and influence of Plutus and by proxy $PLS — we will be expanding within Arbitrum in the coming weeks and creating mutually beneficial partnerships with protocols that we believe will be key players in the future. Be on the lookout for an announcement soon! Looking ahead, we’ll also be introducing bonding down the line and using it strategically as a part of our toolkit to broaden our scope and influence within the Arbitrum ecosystem.
We’re incredibly excited to launch our product this week — we think any Dopex ecosystem participant is going to love it. ❤️
Stay tuned for more updates!
