The ExerciseSortoor contract is a contract that sorts the revenue obtained from users exercising their oTokens (option tokens). There are three destinations for the revenue with this added module, the Maxxing Gauge, the Treasury, and the Master booster.

If you would like a fuller understanding of the options token design at Velocimeter you can visit our Documentation here, or watch this playlist on Ceazor's Snack Sandwich Youtube

But for now, we will simply say that LP farmers are rewarded with oTokens that have a cost to exercise. The revenue from exercising cost is collected and then shared with other users of the system, mainly governance token liquidity providers in the form of the token that it costs to exercise.

On different chains, there is a different cost token, usually the wrapped gas token of that chain. So for the rest of this article we will use Base Velocimeter as an example which has WETH as the cost token, oBVM as the option token, and BVM as the governance token.

The default setup is to divide the revenue between the Treasury and the Maxxing Gauge, which is the gauge that takes the BVM/WETH LP tokens. The ratio of this is customizable, but the default is 5% to the treasury and 95% to the Maxxing Gauge.

Fantom Velocimeter was the first to deploy the ExerciseSortoor, but the success there has warranted the same setup to be deployed on Base Velocimeter.

So, the Exercise Sortoor is an additional stop between the options token and the treasury. That means that the option token is still sending WETH directly to the Maxxing Gauge, but the amount allocated to the treasury instead ends up in the Exercise Sortoor.

This new contract receives WETH, takes a portion of it and sends it to the treasury, so that the treasury still gets 5%, but the rest of WETH is used to buy BVM from the market and to allocate it to the MasterBooster.

We won't explain the MasterBooster in full detail as it is done so in this article. However, in few words, it rewards users that buy BVM from the market and put them to specific uses such as LPing or locking in veNFTs.

An astute reader would notice that if 5% is still sent to the treasury there would be no more to left to buy. To obtain an amount, the 95% that is sent to the gauge is reduced. Now 30% of exercise revenue is sent to the ExerciseSortoor, while 70% is sent to the Maxxing gauge. Of this Maxxing Gauge cut, 72% is used to buy BVM for the MasterBooster, while 28% is for the Treasury.

There are a few benefits of this buying BVM system:

• Buying BVM from the market raises the price which raised the cost to execute, which consequently raises the revenue generated.

• Buying BVM shares benefit of the revenue with ALL BVM holders instead of a select group.

• Buying BVM regularly creates a more sustainable incentive system.

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We have since our initial deployment brought the following innovations:

• Fees that went directly as bribes and were claimable at epoch flip.

• Option token emissions, with exercise(), exerciseLP(), exerciseVE().

• A Maxxing Gauge that collects the revenue from oTOKENs and gives it to LP Providers.

• Emissions can be doubled or halved each epoch.

• A mintTank that holds preminted tokens, but can ONLY be used to mint veNFTs.

• Fees can be adjusted on a pool by pool basis.

• AutoBribe contracts that allow projects to fund bribes for multiple weeks.

• VelocimeterPro which allowed projects to use oTOKENs for bribes/rewards.

• Factory Arrays, that allow for new innovations without changing current deployments.

• The MasterBooster that uses a portion of emission to incentives actions that buy and lock emission tokens.