Mises Legacy Proposal
Dear VELO community,
The VELO token is primarily a community driven project. Any changes made to the VELO protocol need to be voted on by the community. This means that from the moment I locked up all VLO in the farming pools I officially gave away all control to the community.
I did this for a reason, any good project needs a strong community backing. Today is the day the community gets the first opportunity to decide the future of VELO. By design, the VELO protocol is such that only through your voting we can complete the full integration of the VELO token into the DeFi ecosystem.
Liquidity Provision
The Super Mises pool has ended, meaning we are currently not rewarding VLO for VLO / ETH liquidity providers. As new token pools are often considered risky, there is a need for rewarding liquidity providers in these pools. This is what DeFi solutions before us have already figured out and what kickstarted the yield farming hype in DeFi.
In this proposal I will layout my solution for the lack of liquidity which is perfectly streamlined with the already existing technology, philosophy and economics behind the VELO token. The reason this hasn’t been implemented as of yet is so that strong community collaboration is encouraged. A little surprise I have for all of you involved 😊
Velocity based LP rewards
As you all know by now, our VLO is all about velocity. VLO rebases based on velocity, VLO gains value over time in relation to its velocity and if the outcome of this proposal so chooses, we will reward VLO / ETH liquidity providers as well in relation to velocity increase within a certain epoch.
Hence, I would like to propose the following:
After every positive rebase and thus contraction of the VLO supply, a ratio of the contraction is used to provide new VLO tokens to support the increased economic activity. This ratio is not static, but is rather based on the long-term velocity (and is therefore velocity-adjusted).
These newly mined VLO tokens will be added to a Uniswap and Sushiswap LP-VLO/ETH Pool called ‘MISES LEGACY POOL’, where they can be farmed as reward for providing liquidity. This new pool is continuous, i.e. is permanently supplied with the new VLO tokens. As an approximation, a 10% average velocity will result in ~10% more VLO tokens per anno. No economic activity (velocity) would result in no VLO minted.
The new ‘MISES LEGACY POOL’ would contain 10M VLO tokens ready for farming right away (distributed over a year), along with the new reward tokens added based on velocity.
The pool’s opening date is the 30th of November, 2020, 12:00pm UTC.
For those of you that would like to know the specifics, the excerpt below is taken from the update on the whitepaper, which would occur with the acceptance of this proposal:
In summary, the rebase function has by far the most dominant effect on the contraction of supply and the new mined VLO tokens have only a marginal total impact. Moreover, the relationship between the contraction and the number of new VLO tokens can be controlled through governance (the F governance factor).
This proposal will ensure that a permanent incentive is established to provide liquidity for the VLO token, hence pulling interest from others in DeFi and ensuring further integration in the DeFi ecosystem.
Execution
My dev team has already deployed the Uniswap VLO-ETH and Uniswap VLO-UNI pairs, as well as the Sushiswap VLO-ETH pair, along with their link to the ‘MISES LEGACY POOL’ on https://velotoken.fi. Moreover, the code is ready to be activated upon the acceptance of this proposal. Now, it is only a matter of your own views on the matter and if you see this as the correct move for the VELO token’s future.
For those of you interested, the on-chain proposal can be viewed on Etherscan!
References
On-chain proposal: https://etherscan.io/tx/0xac3c5d9e91ddc3b53507f53f7ecd43fb6b298fe070abcf103d931f56ec70fdc6
Rebaser contract: https://etherscan.io/address/0x1785e8d6adE68b4937137F07C15b098aE0caF001
Mises Legacy Pool contract: https://etherscan.io/address/0x3d3Fddb7B10F46938F8a644D4612Af2827C1e577
