Summary and Proposal
In order to bootstrap the stkIDLE locker at veToken Finance, it is proposed that the IDLE DAO locks 50K IDLE in veToken Finance stkIDLE locker in order to cold start the locker contract. $IDLE will be permanently locked in through veToken’s voter proxy contract.
Background
With an increasing number of DeFi products that have started gaining implementation and adoption throughout the market, there is a need for a generic DeFi protocol that builds on top of ve-model projects. veToken Finance is an improved version of the CVX yield protocol that targets all ve-model projects through the locking of their veAsset permanently, via bond and protocol-owned LP (eg: ve3IDLE-IDLE LP, ve3IDLE is the wrapper of stkIDLE created by veToken Finance), while providing regular users boosted revenue and gauge weight bribes. By owning the critical LP ve3IDLE-IDLE LP pair, veToken will not need to provide long-term large emission rates of our own token to maintain the ve3IDLE-IDLE LP ratio, while still providing deep liquidity. In the meantime, the voting power can be delegated to broader DeFi projects through bribes.
Specs
- The veToken Finance team is currently working to integrate stkIDLE contract, which enables IDLE users to permanently lock IDLE for another token, called ve3IDLE , at a 1:1 ratio.
- veToken Finance then uses its own governance token (VE3D) as an incentive to create liquidity between ve3IDLE and IDLE through liquidity mining or bonding, so that users can sell it on secondary markets as they please.
- The reason to enable this ability is that it provides a means of creating a liquid proxy version of stkIDLE , while IDLE held by veToken Finance can be used to boost vaults that provide regular users with access to optimized APRs. In return for using its optimized vaults, the veToken protocol would take a performance fee from its users.
$VE3D & Governance
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$VE3D token is the governance token, and it acts as a governance and incentivization tool. Users who have locked VE3D tokens will have governance rights in the system and will be able to vote using the protocol-owned voting power.
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By locking a large amount of stkIDLE voting power, it is important to make the veToken Finance voting process fully decentralized. veToken has added vote delegation to the system to enable the voting process to happen on-chain fully. The veToken Voting contract has support for EIP1271, which means that all the vote results of on-chain votes can be forwarded to Snapshot to participate in stkIDLE governance.
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a Mutisig contract will be created between veToken Team and Idle Team to ensure all the stkIDLE-related contracts admin rights are controlled and reviewed by IDLE Core Team to make sure all the changes will be beneficial to the IDLE project and community.
Integration Status:
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Smart Contracts have been audited through code4arena here
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Front end Design has been finished :
Team:
The team behind veToken has had rich experience in building blockchain products since 2016. The team includes ex-Apple and Messari members that bring substantial experience in building premium products. This project is also backed by Defi degens from Pickle, Curve, Yearn Perpetual core members, and angels.
More Info:
- Website: https://vetoken.finance/
Next Step:
If there are no objections to this proposal, I’ll open a temperature check in 3 days to move forward with the process
