vTHOR (Staking v2)
$vTHOR offers staking rewards, auto-compounding, trading discounts, composability, capital efficiency and more.
Last updated
$vTHOR offers staking rewards, auto-compounding, trading discounts, composability, capital efficiency and more.
Last updated
$vTHOR is a membership staking token that offers generous rewards and benefits to active THORSwap participants and users.
$vTHOR is built as a Tokenized Vault Standard (ERC-4626) on Ethereum, a standard which allows composability and apps to be built on top of its functionality.
$vTHOR Contract Address: 0x815C23eCA83261b6Ec689b60Cc4a58b54BC24D8D
$vTHOR token: Stake $THOR tokens to receive $vTHOR tokens, a composable and tradeable representation of your staked $THOR position.
Trading Discounts: THORSwap users holding $vTHOR will be entitled to trading fee discounts.
Additional Staking Rewards: V1 Staking Rewards came purely from emissions of the Community Incentives pool. V2 Staking Rewards are a culmination of Community Incentives emissions plus 75% of all THORSwap revenues.
Auto-compounding Staking Rewards: V2 Staking features automatic compounding — your staking position will receive daily rewards and auto-compound without any user action. You no longer need to repeatedly claim and re-deposit, saving you gas and helping you to earn more rewards.
Staking V1 Rewards came purely from emissions of the Community Incentives pool.
The upgraded Staking V2 Rewards will include Community Incentives emissions, and 75% of THORSwap affiliate fees.
25% of revenues will go to THORSwap Treasury for development and maintenance.
75% of revenues will accrue back to $vTHOR holders in the form of $THOR rewards.
This new staking rewards model signifies a transition from inflationary emissions-based rewards, to a more sustainable model based on fee-sharing with the community.
V1 Staking required users to manually claim rewards and manually re-deposit into the staking pool.
In response to community feedback, V2 Staking features automatic compounding - you no longer need to repeatedly claim and re-deposit. Your staking position will receive daily rewards and auto-compound without any user action.
Auto-compounding is an user convenience, it helps you save gas by minimizing transactions, and ultimately helps you earn more rewards.
When you unstake your $THOR by redeeming your $vTHOR, you will receive all of your originally staked $THOR tokens plus any additional $THOR rewards.
Staking $THOR for $vTHOR is very similar to the $xSUSHI and $sSpell staking models.
75% of THORSwap revenues will be distributed to the $vTHOR staking pool as $THOR. The ratio of $vTHOR : $THOR in the staking pool starts off as a 1 : 1 ratio. Because staking rewards are added into the pool, this ratio will always remain above a 1 : 1 ratio.
Protocol Example For easy math, let us assume there is only 100 $THOR staked in the staking pool at the original ratio of 1:1 (1 $vTHOR = 1 $THOR).
If the protocol distributes 10 $THOR rewards into the $vTHOR staking pool, the new ratio becomes 1 : 1.1, as 100 $vTHOR can claim 110 $THOR.
User Example Let’s say Chad stakes 10 $THOR, at the original ratio of 1:1 and thus Chad would receive 10 $vTHOR. As shown above, the protocol distributes 10 $THOR into the staking pool changing the ratio to 1 : 1.1. When Chad redeems his 10 $vTHOR, Chad now receives 11 $THOR (initial deposit of 10 $THOR + staking rewards of 1 $THOR).
Alternatively, if Chad had staked his 10 $THOR when the ratio was 1 : 1.1, he would receive 9.09 $vTHOR. If he decides to redeem his 9.09 $vTHOR when the ratio is 1 : 1.3, he would then receive 11.8 $THOR.
