veLVVA
Description of Levva's tokenomics and voted escrow (veTokens)
What is veLVVA?
Levva's decentralized management relies on vote-escrowed LVVA or veLVVA in short. veLVVA holders gain access to an array of features that increase the token's utility. veLVVA serves as an important tool for maintaining the long-term sustainability of the Levva's ecosystem.
Holding veLVVA allows you to:
Vote to channel $LVVA incentives into vaults.
Receive Voter’s APY as share of the interest of the voted vault.
Boost LP rewards (up to 250%)
Getting veLVVA
Users stake LVVA and receive veLVVA.
veLVVA value is proportional to the amount and duration staked (up to a maximum of 2 years).
Each wallet is associated with a single veLVVA expiry date.
veLVVA value decays over time, when veLVVA value reaches zero LVVA is unlocked.
To increase veLVVA value, users can extend staking duration and/or increase the stake.
veLVVA holders vote to direct the flow of LVVA inflation to different incentive channels (Levva's Vaults). Technically, the setup for the inflation channeling is similar to Curve gauges. Each gauge is a weight which determines how much of LVVA inflation is being directed to a certain channel.
Users vote on the gauge weights with their veLVVA stakes. A snapshot of all votes is taken at the start of every period and the incentive rates for each channel are adjusted accordingly.
Governance voting entitles veLVVA holders to fraction of the fees collected by the Vault. Fees are distributed pro rata between all voters of the Vault.
Rewards Boosting
User balances in Levva vaults may be boosted by veLVVA locking. Governing equation is similar to Curve’s implementation where the actual balances recorded per user are counted the following way:
The value of $w_i$ is taken at the time user performs any action and is applied until the next action this user performs. If no users vote-lock any LVVA, the inflation will be distributed proportionally to the liquidity provided by users. However, if a user stakes much enough LVVA, he is able to boost his rewards by 250% (reducing it slightly for all users who are not staking LVVA).
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