vTHOR (THOR Staking)
$vTHOR offers staking rewards, auto-compounding, trading discounts, composability, capital efficiency and more.
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$vTHOR offers staking rewards, auto-compounding, trading discounts, composability, capital efficiency and more.
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Was this helpful?
$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
Users can stake $THOR to receive $vTHOR on THORSwap:
$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.
Staking Rewards: 75% of revenues will accrue back to $vTHOR, $uTHOR, $yTHOR and THOR LP based on the ratio of Thor in each pool
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.
The upgraded Staking V2 Rewards come from a share of 75% of THORSwap affiliate fees.
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.
25% of THORSwap revenue will go to THORSwap Treasury for development and maintenance.
75% of THORSwap revenue will accrue back to $vTHOR, $uTHOR, $yTHOR and THOR LP based on the ratio of $THOR in each pool
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.
Staking V1 Rewards came purely from emissions of the .
