Unveiling The Vector Finance Tokenomics
Tokenomics are among the most important aspects of any project. Vector Finance team spent a lot of time thinking about their tokenomics and are excited to share it to the public.
The VTX Token
VTX is the Vector Governance token. The primary utility of VTX comes in four forms:
- VTX stakers receive a portion of Vector’s protocol fees (~29% of all fees).
- Users can “lock” their VTX for 16 weeks. By locking VTX, users get:
• Higher share of protocol fees
• Gauge voting rights for Platypus, based on Vector’s accumulated vePTP balance - VTX tokenholders can supply VTX-AVAX LP on Trader Joe to receive incentivized emissions.
- Vector will soon establish decentralized governance, where VTX emission weighting and bonus emissions will be determined by the community.
There will be a maximum token supply of 100M VTX tokens. The breakdown of these tokens and their vesting schedules are listed in the graphic below.
Liquidity Mining
The liquidity mining program accounts for 55% of VTX token supply and is made up of three components:
- xPTP staking
• PTP conversion is the most important feature of the Vector protocol for generating long-term value for VTX. Thus, it is important for us to allocate a substantial portion of our emissions to xPTP stakers - Stablecoin staking
• In the long-run, it is important for Vector to attract as much stablecoin TVL as possible. As our stablecoin TVL increases, the amount of fees generated by Vector will increase as well, generating value for xPTP stakers and VTX stakers. - LP staking
• To further enhance Vector’s success, we will need to have liquid capital markets in which users can enter and exit positions with ease. This goes for both our PTP-xPTP and VTX-AVAX liquidity pools which we will host on Trader Joe.
The distribution of these emissions will follow a logarithmic function, where the emission rate is higher early on and slows down over time. Incentivizing high yields for its earliest users ensures that Vector builds a solid base of PTP at the onset, which will increase the amount of vePTP earnings in the long-run. This will result in long-term sustainable value and rewards for users into perpetuity.
For more details regarding Vector Finance ecosystem, you are free to follow their social channels.
ABOUT Vector Finance
Vector Finance is a protocol that synergistically integrates with Platypus Finance. Vector enables users to generate boosted yields on their stablecoins, even if they don’t own any PTP.
