Authors: The Vesta Core Team + Review from Frens
Summary & Motivation
VSTA governance token currently lacks utility and does not accrue any value. We aim to devise a governance staking module that ensures governance votes are casted by those who are long-term aligned with the protocol through economic alignment. The governance staking module can be entered via staking or locking VSTA liquidity pool token. Staking and locking entitles participants to different amounts of protocol revenue and VSTA reward, which can then be re-staked or withdrawn. This system, which we call the Hearth, rewards long-term aligned VSTA holders while ensuring deep liquidity for the governance token.
To learn more about the model that we are exploring, please view this document and leave comments down below in this forum.
After collecting some feedback from the community, we aim to implement this model within Q3 2022. Therefore, your immediately feedback is appreciated.
looks great imo, will read again to wrap my head around it better
so far it looks very similar to ALCX their new proposed ve-tokenomics, maybe there are possibilities to crosscheck eachother tokenomics for feedback
You’ve got my vote for this version of the Hearth. Sharing profits with devoted community users, creating a new demand sink for VST (helps alleviate the peg), and increase VSTA liquidity are all epic wins.
The model itself looks great and it’s great to see some influence from bean.money come into fruition, I have some questions about;
- What will protocol revenue be paid out in? Since Vesta is Arbitrum native, AETH?
- Will VSTA emissions be escrowed? I think esGMX would be a good benchmark?
GMX seems to have some of the best tokenomics for token holders within the nascent L2 DeFi ecosystem and I think it would be beneficial for Vesta to take some inspiration from that design also.
hey there! could I DM you on a proposal for $VST incentives in this regard? (specifically on providing VST-paired liquidity in section 4)
Hi there, yes feel free to DM me here or on Discord at Mikey Milken#0175
In favor of this proposal, although I have two comments:
- Should we wait to increase protocol fees before implementing this?
- The two options (staking & locking) are necessary? Would locking only not be more beneficial?
Thank you for your comment. Please view the latest proposed staking module here, in which locking is no longer considered.
I also agree with the protocol fee part. Once v2 is up and protocol fee ramps up more quickly, I believe the staking module will be more beneficial.
Vesta stakers! VST LPs! We want to hear from you!
Once V2 launches on Vesta, do incentives for an Arbitrum $VST LP pool sound appealing?
xToken’s Liquidity Mining app is built on top of Uniswap V3 and would be a simple implementation for Vesta LPs to earn more on their stablecoins. Uniswap V3 is an extremely capital efficient DEX, outperforming comparable Uniswap V2 positions by an average of 54%.
…One of our latest apps in xToken’s Terminal for DeFi primitives, which we call Mining, has been built out to seamlessly launch an LM program on a chain of the community’s choosing. For reference, a current pool in our Terminal, which was deployed using Mining on Arbitrum, sits at an 88% APR.
We would like to make a more detailed, separate proposal here on the forum to Vesta’s governance community. This would outline a means to reward $VST LPs, likely on Arbitrum, through incentivized liquidity on Uniswap V3. One initial idea/suggestion would be a VST<>WETH pool.
Before we post this… it would be a pleasure to hear your thoughts and suggestions…