Announcing WXT v2 Lock

Today we are happy to announce the launch of the new WXT locking module available at Nereus.

• Lock 1: 3 Month WXT v2 Lock
• Lock 2: 6 Month WXT v2 Lock

Available via: https://app.nereus.finance/#/manageWXT

How does the new v2 lock work?

The 3 Month and 6 Month v2 lock pools receive approximately 40% of the weekly emissions from the incentives controller contract. Of these rewards — of this allocation the breakdown is 33% to 3 Month and 67% to 6 Month.

All rewards allocated through the emissions model require a 3 month vest.

The APR itself if driven by a calculation of the amount of emissions divided by the locked tokens in that pool. To give you an estimate of APR you need to take the emissions and number of tokens in the pool. As of today, If 250M tokens is locked in 3 Months and 250M is locked in 6 Months — you’d see approximately 35% APR on the 3 month and 70% APR on the 6 month.

How do different total locked token amounts change the APR in the new locking pool:

Updated Allocation Points

As apart of these changes we are making some adjustments to other allocation points:

As apart of the updated Locking module we are reducing emissions to the WXT/NXUSD pool. While also increasing the emissions a little bit on the Curve pool.

In addition, you’ll note the temporary WXT market will no longer have any incentives — as these incentives are being redirected to the new v2 lock.

Why is there a v2 Lock?

A quick look back on the initial locking module in Nereus — WXT was locked in the contract for 3 months — during the time users received a portion of the protocol revenue from the lending and borrowing protocol as well as the penalty fees from users who wanted to accelerate their reward vesting. The locking module early provided significant returns and accomplished the job of providing anti-dilution protection against users who were looking for quick yield farming style rewards by accelerating their vesting.

We have heard users dissatisfaction with the unpredictable nature of this type of locking module (since it relied upon community action to drive returns i.e. early vest) and the desire to have more predictable passive income.

Incentives in the protocol are driven by 2 main drivers — the first is the reward phase and the second is based on allocation points attributed to each market. The combination of these two create the amount of WXT emissions that will be distributed each week per market. The APR for a market is calculated by the annualized emissions rate divided by the total amount of tokens locked in that market. All reward allocated through the emissions model require a 3 month vest.

All WXT emissions are based on allocation points. These points essentially indicate how much weighting a market has and how much of the Phase emissions will go to a certain market.

What happens to the v1 Lock and Stake?

The v1 lock & stake are still available for users to participate in; however, users will need to make a decision on whether to Lock tokens in the v1 lock or in one of the new 3/6 month locks. The users of the v1 lock will still receive the revenue share + early vest penalties. Staked tokens will still continue to receive the revenue share.