H2O Introduces vlPSDN
As part of H2O’s new roadmap, we’re thrilled to introduce vlPSDN. PSDN holders will now have the ability to further lock their tokens to collect more governance power and generate revenue from protocol fees.
Here’s how it works 👇
About vlPSDN
vlPSDN is a locked 80PSDN:20WETH BPT that serves as the liquidity base for PSDN. This token can be obtained by providing liquidity in the PSDN Uniswap pool through Balance. Users will have the ability to lock the pool token for a single period — 16 weeks. Note that vlPSDN will be non-transferable.
How to obtain vlPSDN?
For PSDN users:
- Ensure you have available PSDN & ETH for staking
- Provide 80PSDN:20WETH liquidity to the Balancer Pool.
- Lock the LP token for 16 weeks
For new PSDN users:
- Obtain PSDN tokens first from Uniswap
- Provide 80PSDN:20WETH liquidity to the Balancer Pool.
- Lock the LP token for 16 weeks
vlPSDN Governance
As mentioned above, after providing liquidity, PSDN holders will be able to have more governance. PSDN token holder is eligible for 1 vote; while vlPSDN holders will be eligible for a boosted amount of votes. The exact governance structure will be communicated and implemented once vlPSDN goes live.
vlPSDN Fee Accrual
vlPSDN holders are eligible for a % of all protocol fees generated on H2O, the other % is reserved in the DAO Treasury for protocol maintenance. If there is another allocation proposal for the fees, it can be discussed further on Commonwealth and voted via Snapshot once there is a general consensus.
Generated fees
As of March 2023, most of the fees generated by the H2O Protocol are directly from Ocean Active/Passive Rewards Participation. In Q2, once Filecoin Liquid Staking Derivative — psdnFIL launches, vlPSDN holders will be eligible for fees from the Filecoin venture as well. In the foreseeable future, vlPSDN holders will be eligible for fees across a variety of DataFi Ecosystems, increasing the long-term value of PSDN & vlPSDN.
When?
Stay tuned to our announcements on Twitter & Medium. vlPSDN is set to go live in the next 2 weeks. Note that when vlPSDN will be introduced, PSDN single sided staking will be removed. (Contracts will still exist, however H2O will no longer promote them).
