stkIDLE Gauges & VEV: unleashing the VeToken powerhouse
Last month, we officially announced the launch of stkIDLE Gauges for the Senior pools of the Perpetual Yield Tranches, entering the world of veTokenomics and unlocking, thanks to the model of the gauge, a new way for $IDLE stakers to access several benefits.
Those who hold stkIDLE can access a number of opportunities, such as:
1) Vote on the weight of IDLE rewards distribution in gauges
Currently, the rewards’ distribution rate is 990 $IDLE/day, and this will last for another 5 months following a proposal approved by the DAO. stkIDLE holders can vote the weight of the weekly rewards distribution among the gauges, steering their vote to the preferred pool. More Infos are available here.
2) Receive a boost on their liquidity provided by staking more $IDLE
Liquidity providers have the chance to enhance their activity with the boost: by locking their $IDLE, they can take a boost up to 2.5x the base rewards, based on the amount of stkIDLE holding. This calculator is available to understand what could be the boost they will get depending on the funds deposited, the IDLE staked, and the length of liquidity provision. More info about the boost is available in the documentation here.
3) Get extra rewards to vote in specific gauges (VEV)
Every project interested in distributing more rewards’ weight in their liquidity gauge can incentivize stkIDLE holders to vote for their specific pool. More info is available here.
Harnessing the VEV benefits
The Voter Extractable Value (VEV) opportunity for stkIDLE holders is a game-changer in the veTokenomics world and is opening the doors to benefits offered by many external protocols.
Enabling the distribution of users’ incentives from external protocols gives the opportunity:
- on the protocols’ side to see the benefit of increasing the $IDLE reward distribution in their pools if there is more votes’ weight;
- on voters’ side (stkIDLE holders) to choose the current best incentive, to then direct their vote for these gauges.
This activity can be done via built-in incentives or marketplaces, platforms that offer incentives, and many other features for veToken projects and their users.
Make your Gauges vote count: announcing the veToken integration
The Idle Leagues contributors worked since the launch of Idle Gauges to establish connections with marketplaces for the stkIDLE Gauges integration. This with the goal of promptly offering to $IDLE stakers the opportunity to access the benefits of VEV activity.
veToken Finance is the first of many other protocols and platforms that will allow stkIDLE holders to discover the benefits of VEV activity. This protocol aims to be a generic DeFi protocol that builds on top of ve-model projects (to work as CVX to CRV) to increase the liquidity and demand of their governance tokens while increasing the usability of their own products.
The veToken Finance team is currently working to integrate stkIDLE contract, which enables IDLE users to permanently lock IDLE for another token, called ve3IDLE, at a 1:1 ratio.
veToken Finance then uses its own governance token (VE3D) as an incentive to create liquidity between ve3IDLE and IDLE through liquidity mining or bonding – in this way, users can access secondary markets as they please.
This provides a means of creating a liquid proxy version of stkIDLE, while IDLE held by veToken Finance can be used to boost vaults that provide regular users with access to optimized APRs. In return for using these optimized vaults, veToken protocol would take a performance fee that could range from 10% to 15% on LPs boosted rewards.
A step towards multiple integrations
The goal of working towards even more integrations like this one is to offer stkIDLE holders a broad range of possibilities to enjoy the benefits of the Idle gauges system fully.
Leagues contributors are in contact with additional marketplaces and platforms that will integrate the Idle gauges system, providing an opportunity for protocols interested in taking full advantage of VEV activity.
Stay tuned for the upcoming announcements; there is much more to come!
About veToken Finance
veToken Finance was created in 2021 to maximize rewards without sacrificing token accessibility. veToken looks to continue to adopt new voting escrow projects as they come to market, with an expected initial launch date later this year. veToken enables and encourages governance, reward maximization, and liquidity — all in one place, encompassing a multitude of projects.
About Idle Finance
Idle DAO is a decentralized organization that builds financial infrastructure for Web3. From brand new DeFi protocols to public companies, businesses of every size use our protocol to optimize capital efficiency and manage their treasuries with DeFi.
We believe that everyone deserves the best for their idle funds, both in terms of returns and risks. Over the past three years, Idle has rolled out the features and services, defining and shaping the yield automation space.
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