veNETT Staking
Stake NETT into veNETT to boost yield farming and participate in governance
Last updated
Stake NETT into veNETT to boost yield farming and participate in governance
Last updated
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
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
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:
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
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
Let's say the veNETTShareBp is set to 50%.
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.
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
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.
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.
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
Boost farms will be selected from current 6 regular farms. And more farms will likely be added at a later date.
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
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
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.
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:
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.
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
