The Vela Exchange Beta is right around the corner, and accompanying the Beta will be a limited time, exclusive rewards program for early VLP minters.

VLP is Vela Exchange’s liquidity provider token. By using USDC (and other stablecoins in the future) to mint VLP and stake, you are exposing your portfolio to a large portion of the fees generated by the platform. The subsequent VLP vault provides liquidity for perpetual traders, allowing them to take positions with leverage.

VLP holders will hypothetically see gains whenever fees are obtained by the platform, in addition to when traders are liquidated or take losses from closed trades. If the traders take a profit, the VLP vault will ‘pay out’, resulting in a negative impact on VLP price.

60% of total protocol fees are distributed to VLP holders and stakers. Simply holding VLP exposes users to VLP vault price increases (and possible decreases) with 50% of protocol fees going to the VLP vault in the form of USDC and 10% of protocol fees go towards supplying eVELA through market buybacks.

To reward early minters for their healthy risk appetite, we are stacking the already fantastic rewards structure with a large batch of $VELA tokens.

A few simple details to help simplify things:

• A total supply of up to 2.5 million $VELA tokens will be rewarded through this program

• Early minters get higher rewards through the tiered system shown below

• Once a tier is filled, the next tier opens

• Minters cannot redeem their VLP for USDC until February 1, 2023

• After the two weeks, Hyper VLP participants may qualify for monthly rewards for a 1 year period until they redeem

• Redeeming VLP value below the threshold committed during the 12-month distribution period will result in rewards decreases approximately proportional to the amount originally committed

• Hyper VLP rewards forfeited from redemptions will be distributed among all qualifying participants left in a tier

  You can apply to early access now by filling out this form on our website. All Hyper VLP Rewards are FCFS (first come first serve), but if you are selected for early access, you will have a head start on minting VLP and securing your tier placement.

  1. You will receive an email notifying you about your selection (and when your access will be granted)

  2. A public Early Access Beta / VLP landing page will also go up, there will be a wallet checker on that landing page

  3. When your time to access the Vela Exchange beta comes, simply connect your wallet to the beta app, navigate to the staking page, and mint your VLP (you will be able to see which tiers are filled and where your commitment will be allocated)

  4. Voila! You now qualify for Hyper VLP Rewards!