Cer Ceazor Sandwich
Since the launch of IVM on IOTA EVM in late October 2024, the protocol owned veLP has been collecting wIOTA tokens from its voting on the IVM/wIOTA pair and wIOTA exercise revenue sharing.
See this article for more details on the launch
A quick look at what is IVM on IOTA. A ve33 dex with veLPs
As of the time of writing the protocol has accumulated approximately 64,000 wIOTA tokens. These tokens are earmarked for distribution to protocol users in the following manner.
A budget of 15,000 oWIOTA tokens will be used to bribe the IVM/wIOTA gauge for four weeks. That's 60,000 total. After this period of time, any oWIOTA recovered by the protocol owned voting power, will be used to extend the campaign.
Starting Jan 8th (after epoch flip), these tokens will be converted to oWIOTA options tokens with the options to exercise into veLPs or liquid wIOTA tokens.
If a user decides to exercise to veLPs, this will require them to obtain some IVM tokens to exercise. There will be NO extra cost for this option. When users exercise oWIOTA into veLPs (IVM/wIOTA LPs locked for 90 days) they will obtain a new veLP that they can use to vote, merge into other veLPs they have, or try to sell on the open market. The amount of IVM required is a product of the current IVM/wIOTA ratio, but will be clearly described in the front end when a user is attempting to exercise.
If a user decides to exercise to liquid wIOTA tokens, they will be required to obtain 80% of the value in IVM to pay the exercise fee. These fees will be burnt from the supply. For example if 100 IOTA is worth 100 IVM tokens (1:1) they will need to obtain 80 IVM tokens to get their 100 liquid wIOTA tokens, the 80 IVM tokens will be burnt. As of the time of writing 1 IVM is worth approx 8 wIOTA (1:8). This cost will change but be clearly indicated in the frontend at the time of exercise.
The final option for oWIOTA tokens is to put them for sale on Graphene (see the Automate Tab in the Velocimeter UI). This will require that some third party wishes to purchase them and decides to check that liquidity for them. It's like an OTC sale.
Velocimeter hopes that this distribution of these tokens is seen as a great way to give back to the users of the protocol, but also to consider the health of the system while doing so.
For a deeper understanding of the system you can read this article
https://paragraph.xyz/@velocimeter/velocimeter-v4
