By utilizing veSCA, SCA holders gain access to a myriad of features that increase the token’s utility.
veSCA also serves as an additional tool for reducing the supply of SCA tokens, thereby increasing the token’s stability and the overall liveliness of the protocol. In this way, veSCA serves as an important backbone for ensuring sustainability and success of the Scallop ecosystem.
Getting veSCA
Simply lock your SCA and receive veSCA.
The amount of veSCA that you receive is proportional to the SCA and duration locked. Your veSCA amount will decay over time. It will reach zero once the lock duration is over. Your locked SCA will then be fully released.
You can increase your veSCA value by choosing to extend your staking duration and/or increase your staked amount.
veSCA formula:
SCA * (RemainLockPeriod / 4 Years)Locking principal:
- The unlock date only occurs everyday at 12 AM UTC. Therefore, users need to select this unlock date.
- One round lasts for one day (24 hours).
- Users need to lock at least one full round. So for example, if they start at 12 PM UTC, they can’t unlock it on the next 12 AM UTC (12 hours later) because it’s not a full round yet. In this case, users need to lock it for more than one day to achieve at least one full round.
- The minimum round is 1 and the maximum round is 1460. Maximum round is equal to 4 years.
Lock more SCA :
- If users increase their SCA stake without changing the lock-up period, it will also refresh the amount of their decayed veSCA.
Extending period :
- Users can opt for a longer lock-up period. The value of the users’ veSCA will be recalculated. It is not possible to shorten the lock-up period.
Redeem SCA:
- Users can take back 100% of SCA after the lock is over.
veSCA utility
Boost Earning by holding veSCA.
- Users can boost their earnings by holding veSCA. veSCA needs to be held when they deposit funds into a pool that offers incentives. For example, if a pool offers a 20% APR for depositing liquidity, holding a certain amount of veSCA can provide a boost, say up to 5x. Initially, the APR is 20%, which then becomes 100% after a 5x boost.
- The amount of boost a user receives depends on the percentage share of veSCA they hold. The more liquidity a user has, the more veSCA they need.
Formula to calculate earning weight.
Formula to calculate earning boost. The percentage of earnings you receive. The minimum is 100%, representing the base earning.
Now, calculating the APR you will receive is
Let’s simulate different scenarios to prove that veSCA amount and coinAmount are correlated. Assuming veSCA total supply is 500,000.
Table above illustrates that when User Supply Amount increases, veSCA amount needs to be increased — to maintain the Earning APR, otherwise the APR will decrease.
Revenue Distribution(Q2 2024):
- Holder of veSCA can receive upside as we grow.
Governance (Q3 2024)
- Scallop’s Governance, also known as veSCA, will help enable a higher degree of decentralisaion
