Plutus X Vesta: Adding plvGLP to Vesta

Hey Vesta fam,

Ethersole here from PlutusDAO. We would love to get plvGLP added as collateral on the Vesta platform.

We believe this is a great way to mark the beginning of a very fruitful relationship between Plutus & Vesta along with the entire Arbitrum ecosystem.

PlutusDAO Intro

Plutus is an Arbitrum-native governance aggregator aiming to maximize users’ liquidity and rewards while simultaneously aggregating governance behind the PLS token. Plutus’ objective is to become the de-facto Layer 2 governance blackhole for projects with veTokens. Plutus has quickly gained traction with its governance product with Dopex and JonesDAO, owning approximately 50% of all Dopex governance power. In addition, Plutus has recently expanded its product line to include Vaults with plvGLP as the premier product.

Proposal

The purpose of this proposal is to suggest adding plvGLP tokens as collateral on Vesta. plvGLP would function similarly to any other asset on Vesta, allowing stablecoins to be minted against it.

plvGLP tokens

plvGLP tokens are created by converting GLP tokens into plvGLP tokens using Plutus. plvGLP tokens are interest-bearing and grow in value over time (e.g. 1 plvGLP = 1.x GLP) due to the autocompounding of ETH rewards and esGMX yield. Additionally, staked plvGLP tokens earn PLS emissions. The interest-bearing nature of plvGLP makes it prime collateral, as the constantly growing value of the token works in favor of the user posting it as collateral. plvGLP can be redeemed for GLP whenever. For more details, please visit Plutus’ docs here.

Smart Contract Risk

What is the link to the main project Github repo?

https://github.com/PlutusDAO

Please provide an Etherscan link with verified contracts.

What is the age of the token in days?

13 days

What is the number of transactions in the token contract to date?

1413

Counterparty Risk

How many holders of the token are there?

Approximately 400

How would you describe the decentralization level of the governance of the protocol that issues this token?

The level of governance decentralization is currently low due to Plutus being a rather new protocol. Eventually the plan is to move to a governance model where PLS holders can vote on proposals.

What is the setup of the main protocol multisig governing this token?

3 of 5 multisig consisting of the original 5 team members

How upgradeable is the token contract?

Not upgradeable - the only upgradeable thing is the staker contract

Market Risk

Please provide some numbers describing the depth of liquidity on this token across some different markets.

plvGLP does not currently have a market where it can be traded. plvGLP follows the price of GLP with the exception of it accruing rewards and thus becoming more valuable than GLP over time.

How accurate are oracles for this token? Do they exist? If so, for how long?

As plvGLP is not tradeable, there is no oracle for this token. As for GLP, there is no oracle.

Please provide the token volatility, defined as the Standard Deviation of log-returns for specific time frames

Token volatility is identical to GLP, which is composed of 50% stablecoins. This means that volatility is significantly muted, adding further to the argument of plvGLP being excellent collateral.

What is the future emission schedule of the token?

plvGLP is currently capped at a 5M supply. This will be raised with the discretion of the Plutus team. Do note that the team cannot mint tokens arbitrarily - all plvGLP tokens are converted from GLP.

What is the current total and circulating supply of the token?

Circulating supply: 4,340,669

Total supply: 5,000,000

4 Likes

Would love to see this go through to snapshot :eyes:

1 Like

Excellent idea and great proposal.

Vesta will be able to accrue additional fees and Plutus will increase the attractivity of the plvGLP vault!

I support this proposal!

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Big fan of Plutus and the risks here are fairly minimal since Vesta has already onboarded “pure” GLP. This seems like a fairly low-risk opportunity to further integrate with Arbitrum DeFi and to increase VST liquidity.

My main question is how should Vesta set up the vaults for plvGLP? It doesn’t earn a streaming income like GLP does but rather accrues value to the token itself via a redemption function. Vesta won’t be able to “skim” off the token APY like it does for GMX and GLP; plvGLP will have to have a mint fee of some sort to make it more economical and to avoid making the “pure” GLP vault obsolete.

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