Update on vlPSDN — Audit & Rewards Breakdown
A bit more than a month ago, we have announced the introduction of vlPSDN. The community was overall supportive of the idea, but there was a suggestion to change the liquidity pool from Uniswap to Balancer via a commonwealth proposal here:
Implement vlPSDN with a Balancer Pool
Now, we are thrilled to announced that the code for vlPSDN is completed and it is going to be entering the audit today.
Here’s some further alpha about it 👇
General vlPSDN
vlPSDN is a locked 50PSDN:50WETH BPT that serves as the liquidity base for PSDN. This token can be obtained by providing liquidity in the PSDN Balancer pool through the H2O Dapp. Users will have the ability to lock the pool token for a single period — 16 weeks. Note that vlPSDN will be non-transferable.
vlPSDN will be introduced as an alternative to $PSDN single sided staking. Users will be providing liquidity to the pool and receiving rewards as a result — win-win for all.
Obtaining vlPSDN?
For PSDN users:
- Ensure you have available PSDN & ETH for staking.
- Provide 50PSDN:50WETH liquidity to the Balancer Pool.
- Lock the LP token for 16 weeks via Dapp.
Ensure that you lock the LP token on the Dapp. Without locking the token, you will not be eligible for rewards.
Why should you get the token?
vlPSDN Rewards
vlPSDN holders are eligible for a % of all protocol fees generated via H2O. The other % is reserved for protocol maintenance for the DAO treasury.
The fees breakdown would be the following for the OCEAN model:
For Filecoin Model upon launch:
Lockers will also be eligible for weekly emissions in $PSDN.
Additionally, once the $H2O is re-introduced, users will be eligible for 50% of those rewards as well.
Thus, upon locking vlPSDN, users will be able to claim:
- psdnOCEAN rewards
- psdnFIL rewards
- $PSDN emissions
- any future 50% cut of the rewards
If there are any other proposals for fees/emissions, those can be proposed in the H2O Governance Commonwealth here: https://commonwealth.im/h2o-governance/discussions
vlPSDN Governance
We have previously mentioned that vlPSDN users will be able to receive a boosted governance. It has been decided that if you lock vlPSDN, you will be eligible for 4 votes, whilst PSDN token holder is only eligible for 1. Governance will be highly important in the coming weeks in regards to the selection of Storage Providers that H2O protocol is going to work with for the Filecoin Model.
When?
As soon as the audit is completed & the pool is moved from Uniswap to Balancer, vlPSDN will be available on the Dapp.
