veNETT Staking

Stake NETT into veNETT to boost yield farming and participate in governance

veNETT Staking is a modified version of veJOE Staking.

What is veNETT?

veNETT is a staking option that rewards long-term stakers of NETT with boosted NETT farms as well as voting power for future governance.

  • Stake NETT into veNETT to accrue veNETT over time

  • veNETT is neither transferable nor tradable due to the design of the smart contract, i.e. they are locked in the private wallet of the user.

  • The more veNETT you accrue in your wallet the higher your NETT in selected farms will likely be

  • You can speed up your veNETT by engaging a speed up accrual rate

  • veNETT will also provide voting power for future platform governance

veNETT will incentivize farmers to stake their NETT instead of selling them

Explanation - High Level

  • Stake NETT into veNETT to earn veNETT over time

  • You can withdraw your staked NETT any time. However, your accumulated veNETT will drop to 0 as soon as you unstake any amount

  • You need to claim veNETT manually for applying a Boost APR to the farms marked with Boost

  • Boost APR will increase your NETT rewards

  • The higher your veNETT share the higher your share of the boost rewards

  • Farmers are now incentivized to stake NETT so they can earn more NETT

Boost your NETT farm rewards

Boosted farms have fixed NETT emissions, shared between Based Rewards and veNETT Rewards pools. Boosted farms have a Boost Factor, e.g. 1.5, which measures the total rewards available to veNETT holders vs non-holders.

  • Split of veNETT vs Base Rewards are determined by a veNETTShareBp setting configured at a farm level and managed by Netswap team.

  • The farm factor measures the proportion of total rewards vs the base rewards emitted to the farm. E.g. for a farm that rewards 50% Base + 50% veNETT pools, the farm factor = 100 / 50 = 1.5X. Base APR follows regular yield farming calculations.

With veNETT you will unlock the access to 50% of the NETT rewards that are directed to a farm.

  • Users receive a share of rewards proportional to their LP token share in the yield farm. veNETT APR is proportional to the User Farm Factor, which is the square-root of their LP balance multiplied by veNETT balance.

  • Farm Total Factor is then the sum of all User Farm Factor. Full equation shown below:

Breaking down the veNETT calculation

Top Section

  • Base rewards accounts for 50% of the NETT rewards(or otherwise stated as 1-veNETTShare)

  • nettPerSec is set by the Netswap team and the same for all participants in the farm

  • user.liquidity is the amount of LP tokens that a given user stakes

  • pool.totalLiquidity is the sum of all user.liquidity for a given farm

  • A participant's % of base rewards is then user.liquidity / pool.totalLiquidity

Bottom Section

  • veNETT rewards accounts for 50% of the NETT rewards(veNETTShare = 50%)

  • user.veNETT is the amount of veNETT that a given user has in the wallet

  • User Farm Factor equal to sqrt(user.liquidity * user.veNETT)

  • pool.totalFactor is the sum of all farm factors for everyone in a given farm

  • A participant's % of veNETT rewards = their percentage of pool.totalFactor

  • This incentivizes participants to accumulate more veNETT, as user.veNETT has an equal weight in the veNETT rewards as user.liquidity

🤔 veNETT Calculations

Let's say the veNETTShareBp is set to 50%.

Example Ⅰ

Let's say Alice has 1000 veNETT in the wallet and deposits 1 LP token, Bob has 100 veNETT in the wallet and deposits 10 LP token.

Thus Alice has only ~9.09% of LP tokens, but has a larger stake amount of veNETT and therefore receives ~29.5% of total rewards.

LP
veNETT
Factor
Base Rewards
veNETT Rewards
Total Rewards

Alice

1

1000

~31.62

~0.45

2.5

~2.95

Bob

10

100

~31.62

~4.55

2.5

~7.05

Total

11

1100

~63.25

5

5

10

Example Ⅱ

Let's say Alice has 1000 veNETT in the wallet and deposits 10 LP token, Bob has 100 veNETT in the wallet and deposits 1 LP token.

Thus both Alice and Bob have veNETT balance proportional to their LP tokens, and therefore receive a proportional share of total rewards.

LP
veNETT
Factor
Base Rewards
veNETT Rewards
Total Rewards

Alice

10

1000

100

~4.55

~4.55

~9.1

Bob

1

100

10

~0.45

~0.45

~0.9

Total

11

1100

110

5

5

10

Example Ⅲ

Let's say Alice has 0 veNETT in the wallet and deposits 10 LP token, Bob has 100 veNETT in the wallet and deposits 1 LP token.

Thus without any veNETT in the wallet to stake, Alice will only receive 45.5% of total rewards despite providing 90.9% of LP tokens.

LP
veNETT
Factor
Base Rewards
veNETT Rewards
Total Rewards

Alice

10

0

0

~4.55

0

4.55

Bob

1

100

10

~0.45

5

5.45

Total

11

100

10

5

5

10

Eligible Farms

Boost farms will be selected from current 6 regular farms. And more farms will likely be added at a later date.

Benefits for NETT

veNETT will be an important part of utilizing NETT in Netswap eco. It will incentivizes farmers to not sell their NETT rewards as:

  • The more NETT you stake into veNETT, the more veNETT you will earn over time

  • The more veNETT you accrue in your wallet, the higher your NETT farming yields will be

  • Your accumulated veNETT will drop to 0 as soon as you unstake any amount of NETT

  • The more veNETT you have the more voting power you will receive in the future governance

Staking into veNETT

To activate the boost for farming, you first must accrue and claim your veNETT through staking your NETT into veNETT staking pool. Once you have staked NETT you will start accrue veNETT over time and your can press the Claim button to yield any accrued veNETT.

  • Harvested veNETT will act as a receipt and automatically apply a boost to selected farms

  • veNETT is non-transferable, you cannot trade veNETT

If you unstake any amount of NETT from veNETT staking pool, you will lose all of your accrued veNETT

Accrual Speed: Base Rate

veNETT Stakers will receive veNETT at a fixed rate, up to a cap of around 100x their staked NETT.

  • The base rate for veNETT will be: 0.000003170979198376 veNETT per sec per NETT.

It takes you around 365 days to hit the max amount of veNETT you can accrue.

Accrual Speed: Speed Up

veNETT stakers can boost their veNETT accrual rate through a speed up mechanism:

  • Speed up rate for veNETT will be: 0.000006341958396752 veNETT per sec per NETT.

  • veNETT Speed Up doubles the Base Rate (2x)

  • You can increase your veNETT accrual by 2x for every 15 days.

  • You will need to top up at least 5% of your staked NETT in a single transaction every 15 days to activate the Speed Up

An example of veNETT accrual with the Speed Up:

How to Activate the Speed Up

You need to top up more NETT to your existing staked NETT to activate a accrual boost of veNETT.

  • Top up at least 5% of your existing staked NETT to activate this boost

  • The Speed Up mechanic is there to allow for new users to catch up with existing veNETT stakers

  • Every veNETT Speed Up Booster will last for 15 days

Your speed boost can be monitored on the veNETT staking page, there is a countdown timeline tracking the remaining speed boost you have until you need to top up 5% more.

Governance

  • veNETT holders will receive governance privileges, to be defined in future scope.

  • 1 veNETT = 1 voting power

  • Unstake from veNETT staking = lose all of your voting power

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