Introducing CAVIAR: A Liquid Wrapper for vePEARL

In the coming weeks, Tangible will deploy CAVIAR, a liquid wrapper for vePEARL, bringing simplicity and greater operability to ve(3,3) economics.

vePEARL is an NFT representing locked PEARL, the governance token of Pearl Exchange on Polygon. Holders of vePEARL earn bribes by voting to send protocol emissions to the liquidity pools on Pearl.

CAVIAR turns locked, illiquid vePEARL NFTS into liquid ERC-20s, allowing token stakers to earn all the benefits of vePEARL without any of the commitment. Additionally, CAVIAR votes on your behalf, optimizing for the highest rewards so you can get more by doing less.

Let’s take a closer look at CAVIAR and what it offers investors.

ve(R,Y) DIFFICULT

An APR of +200% paid in stables is a rare and extremely attractive product. This is the backbone of the Solidly model, aka ve(3,3) and what makes it work. ve(3,3) decentralized exchanges use a system of token emissions, locked tokens and bribes/voting to achieve balanced, aligned incentives amongst all participants, yielding incredibly high APRs for voters. The downside is that Solidly economics are dense and complicated, challenging for experienced DeFi users and simply beyond the reach of your basic crypto investor. Users may have heard of the lucrative bribe payments being distributed on a weekly basis, but many don’t understand the process for getting their hands on these incentives.

Beyond system complexity, there’s also the issue of the time commitment — required weekly participation — to earn this income. Voting, rewards claims, rebase claims, token locking from liquidity provision and managing locked token positions all require a minimum weekly engagement to maximize bribe earnings. Solidly was designed as an evolving ecosystem to engage users and protocols, it was never meant to be “hand’s off.”

So while ve(3,3) economics may offer tremendous upside to the protocols and investors involved, it’s a consuming and impractical investment for all but the most dedicated degens. And this friction is a potential cap on how big these exchanges can get.

Which begs the question, “Wen retail solution?”

CAVIAR: The Wealth You Desire, the Simplicity You Deserve

CAVIAR removes the complexity and commitment of ve(3,3) economics, creating a simple token for nearly any level of DeFi user. Weekly voting, locking, token management and everything else has been simplified into three easy steps:

1. Get CAVIAR

Buy CAVIAR on Pearl or mint it yourself on Tangible, depositing PEARL or vePEARL into our vault.

2. Stake CAVIAR

Stake CAVIAR on Tangible to start earning the highest possible daily yield.

3. Claim USDR

Claim yield any time. Rewards accrue by block and are delivered to your wallet as USDR.

CAVIAR’s optimizer votes weekly on the holder’s behalf and ensures stakers earn the highest possible yields from their designated vote share, each week and without fail. Rebases are automatically added back to your token position so there’s literally nothing to do but sit back and collect your yield. The benefits of ve(3,3) have never been easier.

Under the Hood

At a technical level, CAVIAR is just an ERC-20 token that represents your share of ownership in a vault of vePEARL NFTs. In this way it’s somewhat similar to a Uniwap V2 LP token, which is your ownership to a share of the liquidity pool.

CAVIAR holders receive all the benefits of vePEARL holders, including a portion of the weekly vePEARL rebase, which ensures participants maintain vote share despite ongoing token inflation. The rest of the rebase will be used to fund an innovative new marketing strategy for CAVIAR. The following flowchart details the flow of system capital between protocols and users.

CAVIAR varies from other liquid wrappers in a several ways:

• Unlike many liquid wrappers, Minting CAVIAR with vePEARL is not a “one way street” as it is with veCRV to CVXCRV or other ve liquid wrappers. Users are free to redeem their vePEARL out of the vault for a small fee.
• CAVIAR is designed to funnel bribes to the token holder rather than use bribes to increase their underlying vePEARL holdings via CAVIAR. We’re putting cash into the hands of users, we’re not interested in using bribe revenue to buyback PEARL. With USDR auto-bribes, the Pearl flywheel already works as intended.
• 50% of the rebase returns to CAVIAR holders, either as a pure rebase to stakers or as CAVIAR - PEARL liquidity incentives, ensuring there’s always ample liquidity to exit your position.
• 20% of the vePEARL rewards are distributed back to TNGBL 3,3+ lockers as a fee for the simplicity of this service, supporting dev, marketing and the Tangible ecosystem as a whole.

ve for Everybody

CAVIAR is a breakthrough in ve(3,3) economics. For the first time, ecosystem benefits are easily accessible, placed on a silver platter for retail users to enjoy. Combined with USDR auto-bribes, there’s never been a token like CAVIAR, projected to consistently deliver triple-digit yield to token holders. It’s time to elevate your earnings to luxury status.