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vTHOR (Staking v2)
$vTHOR offers staking rewards, auto-compounding, trading discounts, composability, capital efficiency and more.
What is $vTHOR?
$vTHOR is the new 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 new standard which allows composability and apps to be built on top of its functionality.
$vTHOR Contract Address: 0x815C23eCA83261b6Ec689b60Cc4a58b54BC24D8D
To learn how to Stake $THOR for $vTHOR to earn Rewards on THORSwap
Staking V2 ($vTHOR) Benefits:
- $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.
Fee-sharing Staking Rewards
The upgraded Staking V2 Rewards will include Community Incentives emissions, and also 75% of ALL THORSwap fees.
25% of revenues will go to THORSwap Treasury for development and maintenance. The THORSwap Treasury will also be used for community-driven initiatives, infrastructure improvements, charity and more.
75% of revenues will accrue back to $vTHOR holders in the form of $THOR rewards.
As THORSwap adds more revenue sources (affiliates, aggregation, Hammer Wallet, merch, etc.), 75% of ALL REVENUES will continue to be rewarded to $THOR Stakers, aka $vTHOR Hodlers.
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.
Auto-compounding
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-compound is a 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 Rewards Explained
Staking $THOR for $vTHOR is very similar to the $xSUSHI and $sSpell staking models.
Of all THORSwap revenues, 75% 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.
Future $vTHOR Benefits & Utility
New benefits and utilities are in the works:
- THORSwap Protocol Governance. $THOR is 65+% allocated to the community. Protocol governance will be thoughtfully rolled out for the community to drive key decisions.
- Composability with other DeFi protocols. Ability to leverage $vTHOR as collateral, margin trading, options, hedging, etc.
- more to come...
Resources
Last modified 3d ago