Fantom: bveOXD
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Badger’s Locked OXD Sett Vault is now open for guarded deposits. The Vault locks OXD V2 and autocompounds rewards into more vlOXD. All rewards from vote locking OXD will be sold for OXD and auto compounded into bveOXD less a 15% emissions handling fee. Badger will further charge a 2% annualized fee on total deposits.
bveOXD will use its OXD to vote for bveOXD/OXD LP and over time it will become self-sustaining.
Important Note: Tokens will be locked and available for general withdrawal for 1 week after the 16 week locking period. This means that the ability to exit bveOXD in the meantime is limited by liquidity in the bveOXD/OXD pool.
bveOXD Vault address:
https://ftmscan.com/address/0x96d4dbdc91bef716eb407e415c9987a9fafb8906
bveOXD/OXD VAMM pair address (for voting):
https://ftmscan.com/address/0x6519546433dCB0a34A0De908e1032c46906EF664
Vote Processor:
https://ftmscan.com/address/0xdc4fbbc2f2e78bfdb94391103f6532c00648b069#writeContract
Motivation:
The goal is to create an “Influence Blackhole”, a semi-liquid locking vault for a meta-governance token like OXD. This vault, bveOXD, allows tokens to be withdrawn for 1 week after they unlock each 16 week period. Further, most (at first all), of the OXD locked in this vault is used to vote for yields on liquidity paired with it, primarily bveOXD/OXD.
As bveOXD becomes larger, it generates more yields for itself by voting. The yields create the demand for liquidity, which create demand for more bveOXD. Over time, if and when bveOXD gets large enough and has enough gravity to be significant, we can start to consider bribing plays and vote matching for anyone who wants to pair with bveOXD.
Benefits to OXD:
Creates buy pressure on OXD by auto compounding OXD locking rewards into more bveOXD.
Creates sustainable vote weight for OXD.
Has the potential in the future to create/support an ecosystem of various tokens paired with bveOXD.
Creates a high yield single asset OXD position for users. bveOXD/OXD receives both rewards for locking OXD and emissions from voting.
Benefits of bveOXD:
Generates utility for itself by voting for yields on pairs that include bveOXD.
Allows depositors to extract Locking Rewards as well as Liquidity Provider Rewards.
Provides a sustainable source of yields on single asset OXD.
Provides other DAOs with a token to stake against that will automatically support vote weight.
Benefits of voting for bveOXD/OXD:
Increases yields for single asset OXD deposits.
Increases bveOXD and OXD demand Helps bootstrap a sustainable OXD yield source.
Benefits of Farming bveOXD/OXD LP:
Increases vote weight for bveOXD/OXD
Obtains the best possible yields on single asset OXD deposits
Strategy Diagram:
bveOXD Locker:
All rewards from vote locking OXD will be sold for OXD and auto compounded into bveOXD less a 15% emissions handling fee.
Badger will further charge a 2% annualized fee on total deposits.
bveOXD will allocate it’s votes to the bveOXD voting engine described below and controlled by BadgerDAO governance.
bveOXD Voting Engine:
At the beginning, 100% of votes will go to bveOXD/OXD. A minimum of 50% of all votes will go towards bveOXD/OXD LP in perpetuity.
As bveOXD pairs are expanded, up to 50% of the vote weight will be used to match bveOXD paired pools, at a 1:1 ratio. Any unallocated matchable vote will be used for bveOXD/OXD LP.
Relevant Links:
Deposit OXD for bveOXD on the Badger DAPP [on Fantom]
FAQ:
Can I deposit vlOXD?
No, the OXD needs to be withdrawn once your current lock is expired
When will I be able to withdraw?
Starting on April 11th, the strategy will move to locking tokens on a daily basis. Tokens deposited and not yet locked are available for withdrawal from the vault. Further, tokens will be available for at least 6 days after they unlock, then they will be relocked for another 16 weeks. During periods when some tokens are unlocked there will be capacity for users to withdraw from the Sett but the amount of available withdrawal capacity is not guaranteed.
Note: bveOXD can always be traded for OXD in Solidly liquidity pool. While the pool may result in bveOXD trading at a discount for some time, the pool will return to balance when there are sufficient tokens available to withdraw to allow for arbitrage.
Are there fees?
Yes, there is a 15% emissions handling fee (annualized), 2% fee on total deposits (annualized) and a .1% withdrawal fee.
