Scenarios
Given below are some of the integral real-world scenarios or actions that could be performed on the VE system. Only dummy values are used in the examples. Refer to the official website for actual values/metrics.
Swap existing PLENTY or WRAP tokens with PLY.
Lock PLY tokens in Vote-Escrow (VE) Locker to get a veNFT.
Provide liquidity in the new set of AMMs (Stableswap & Uniswap v2 like).
Stake the L.P tokens (generated by providing liquidity in the AMMs), in Gauges.
You receive PLY emissions by staking L.P tokens in Gauges.
You can boost your emission rate upto 2.5x by attaching a vePLY NFT to your stake.
As a veNFT holder, vote on a weekly basis to decide the emission distribution across Gauges of the AMMs.
You may claim a Bribe (a small reward in any random token) if you vote for a gauge that has been incentivised by a briber.
You would also receive a share of the fees collected by the AMM related to the gauge.
Your locked PLY value will increase proportionally to the inflation rate generated across the gauges, to prevent dilution.
As a protocol owner, bribe the voters of your pool to direct more emissions towards it.
You can increase the votes received by your pool by adding a bribe.
More votes equal more PLY rewards for the LPs of your pool which in-turn leads to higher liquidity.
1. Swap existing PLENTY or WRAP tokens with PLY
If you hold the existing PLENTY and/or WRAP tokens, you can exchange them for the tokens of the new system - after the merger. There will be predetermined exchange rates for both tokens. You will receive 50% of the exchanged tokens immediately, and another 50% will ve linearly vested for 2 years. Claim on the vested tokens can be made every 24 hours.
Scenario:
You have 1000 PLENTY tokens (would work similarly for WRAP, with a different exchange rate).
You deposit 1000 PLENTY into an Exchange contract and have 500 PLY tokens ‘assigned’ to you (dummy exchange rate of 0.5 PLY/PLENTY).
You get 250 PLY (50%) immediately.
The remaining 250 PLY is vested over 2 years and you can make a claim once every 24 hours.
This vesting structure is highly flexible and an extended explanation can be found here: https://whitepaper.plenty.network/tokenomics/migration
2. Lock PLY tokens in Vote-Escrow (VE) Locker to get a veNFT
You can lock your PLY tokens in the Vote-Escrow Locker to receive a veNFT (also called vePLY NFT). The locking period is in number of integral weeks - 1 week, 2 weeks, so on with a max of 4 years (~ 208 weeks), depending upon how vested you are into the ecosystem.
NOTE: Lock ups are done on the basis of whole weeks. Each week starts at Thursday, 12 AM (UTC). Therefore, if you want to do a minimum time (1 week) lock up, say on Tuesday, you would essentially be locking your tokens for 1 week + 2 days (covering the Tuesday -> Thursday gap).
vePLY NFT is essentially a transferable NFT that represents the ownership of the locked PLY and also has an associated ‘Voting Power’ that is linearly decreasing over time. The amount of the underlying PLY stays the same throughout the lock. Underlying PLY cannot be claimed until lock expiry. The locking explained in the Action 1 would work in a similar way.
What can veNFT holders do?
Vote to decide the weekly PLY emission distribution across the Gauges of different AMM pools.
Claim fees from the AMMs whose gauges they vote for.
Claim bribes from incentivised votes.
Additionally, they can have their underlying PLY grow proportionally to inflation that is being generated by the gauges.
Voting Power Scenarios:
If you lock 1000 PLY tokens for 4 years, you get a veNFT with an initial voting power of 1000.
If you lock 1000 PLY tokens for 3 years, you get a veNFT with an initial voting power of 750.
In a similar way, you get a power of 500 for 2 years, 250 for 1 year and so on in a linearly related way. The higher your lock period, the higher your initial voting power.
As mentioned before, this voting power also decreases constantly at the same linear rate. So, if you have 1000 PLY locked for 4 years and received a veNFT with initial voting power as 1000 - after a year, the voting power will be reduced to 750. By the end of the lock, the voting power would tend to zero.
NOTE: The veNFT holders can increase their underlying PLY value and also increase the lock period at anytime before expiry. The voting power is adjusted accordingly when either of the two operations are performed.
3. Provide liquidity in the new set of AMMs (Stableswap & Uniswap v2 like)
Liquidity provision across AMM pools would work in the standard way, with all providers receiving associated L.P tokens.
AMM Fees:
For AMMs whose Gauges (explained in Point 4) are not receiving PLY emissions (i.e not whitelisted), the fees would go directly to the liquidity providers.
For AMMs with gauges receiving the emission, the fees would not go directly to the L.Ps. Instead, the fees would be given to veNFT holders who voted for that gauge in that week (elaborated in Action 5).
L.Ps can get veNFT by locking up the PLY emissions they receive from the Gauges.
4. Stake the L.P tokens (generated by providing liquidity in the AMMs) in Gauges
Every AMM Pool in the new system will have an associated Gauge that would act as a farm for weekly PLY emissions. Liquidity Providers in the AMMs can stake their LP tokens in the Gauges to receive a share of the emission.
The L.P token stakers can also ‘boost’ or increase their total share of the weekly emission to a maximum of 2.5x, by attaching a veNFT NFT to their stake. The total boost would depend on the spot voting power of the veNFT.
5. Vote on a weekly basis to decide the emission distribution across Gauges
The main perk of being a veNFT holder is that you can vote on the distribution of weekly PLY emissions across the Gauges. The distribution is calculated based on the voting power you assign to each gauge during the voting period.
Voting is in an ‘always-on’ state, results are factored in and gauge weights are adjusted on a fixed day every week. veNFT holders receive AMM fees only for those whose Gauges they vote for. It is required to vote in a week in order to receive the fees for that week.
NOTE: You cannot use your veNFT to vote in the same epoch in which it was created. It is available for voting in the following epoch. This is because voting-power snapshots are taken at beginning of each epoch to prevent sybil attacks.
Scenario for Voting:
Assume there are three AMM pools - kUSD, USDtz, uUSD (Second pair-token is Ctez in all cases). Each one has an associated gauge.
There are 3 veNFT holders with following voting powers:
Alice
4,000
Bob
3,500
John
2,500
The vote distribution across a certain week is:
kUSD
2,000
2,500
0
4,500
45%
USDtz
2,000
1,000
0
3,000
30%
uUSD
0
0
2,500
2,500
25%
If the PLY inflation for the current week is 150,000 PLY, the distribution across gauges based on vote allocation would be as follows:
kUSD
67,500
USDtz
45,000
uUSD
37500
The fees will be distributed amongst voters in the ratio of their individual vote allocation for an AMM pool. In our example that would be:
kUSD
44.4%
55.6%
0%
USDtz
66.67%
33.33%
0%
uUSD
0%
0%
100%
Bribe the voters of your pool to direct more emissions towards it
As a protocol owner, you might want high liquidity in the pools containing your protocol's token. Liquidity can be increased by directing more PLY emissions toward your pools by getting more users to vote for it.
Votes for AMM pools can be incentivised by giving bribes to those who vote for emissions through the gauge. The bribe reward is distributed based on the voting share, similar to the distribution of fees.Given below are some of the integral real-world scenarios or actions that could be performed on the VE system. Only dummy values are used in the examples. Refer to the official website for actual values/metrics.
Swap existing PLENTY or WRAP tokens with PLY.
Lock PLY tokens in Vote-Escrow (VE) Locker to get a veNFT.
Provide liquidity in the new set of AMMs (Stableswap & Uniswap v2 like).
Stake the L.P tokens (generated by providing liquidity in the AMMs), in Gauges.
You receive PLY emissions by staking L.P tokens in Gauges.
You can boost your emission rate upto 2.5x by attaching a vePLY NFT to your stake.
As a veNFT holder, vote on a weekly basis to decide the emission distribution across Gauges of the AMMs.
You may claim a Bribe (a small reward in any random token) if you vote for a gauge that has been incentivised by a briber.
You would also receive a share of the fees collected by the AMM related to the gauge.
Your locked PLY value will increase proportionally to the inflation rate generated across the gauges, to prevent dilution.
As a protocol owner, bribe the voters of your pool to direct more emissions towards it.
You can increase the votes received by your pool by adding a bribe.
More votes equal more PLY rewards for the LPs of your pool which in-turn leads to higher liquidity.
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