Boost VIRES Rewards by locking Liquidity
Vires.Finance is a pool-based liquidity protocol facilitating lending and borrowing capabilities at rates defined by the market equilibrium.
Today, the new functionality of locking liquidity goes live.
Here’s what you need to know.
What is the Liquidity Lock?
Locking liquidity for a timerange will now yield the majority of VIRES daily distribution(225 VIRES daily), while regular liquidity provision will earn just a fraction of it(25 VIRES daily). Borrowers will not earn VIRES.
Why is the locking functionality needed?
This is aimed to create predictable withdrawal dynamics for the markets at vires.finance. If the majority of users lock up their positions, the minority that want to exit the protocol will be able to do so without causing large scale liquidity exit issues.
As there are many community members who want to support the long term sustainability of Vires, the long-term liquidity provision needs to incentivised and rewarded by the protocol. However there are also many users that want to leave and we want to give them that opportunity to do so, in a way that is sustainable — that doesn’t cause critical liquidity problems.
How does the distribution work?
If you have already supplied liquidity to the protocol, want to supply, or you own LP tokens(exported, bought or transferred) you can lock your position for 3 months, 6 months, or 12 months. The longer the lock time is, the larger share of total distribution you will receive:
— 1.25X more if you lock for 6 months compared to 3 months.
— 1.50X more if you lock for 12 months compared to 3 months
A total of 225 VIRES are distributed for the locked liquidity daily. Each market receives a share proportional to the borrowed amount; this part is then distributed between lockers within the market proportional to the weight of their position.
How-to Boost Rewards
Re-locking and Withdrawing
You can always extend your lock or add additional liquidity.
Once the lock is exhausted, there’re three ways to withdraw:
— withdraw assets to wallet with respect to current withdrawal limits and liquidity availability;
— export as LP tokens;
— migrate to regular supply.
What to do?
Lock liquidity, follow us on social media for the latest updates, participate in the discussions on the protocol future:
