See this article for more details on the launch

Velocimeter on IOTA

A quick look at what is IVM on IOTA. A ve33 dex with veLPs

https://paragraph.xyz

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

The IOTA community is eager to learn about DeFi, and Velocimeter thinks they are a suitable project to expose them to some of the features of DeFi. 

The IOTA chain has been around for ages in crypto years, being active since 2016. This chain, however, is an isolated ledger, in the same manner that BTC is. With the rise of EVM side chains, IOTA has decided to put its efforts into their own EVM: IOTA EVM.

Some of the main points that set IOTA EVM aside from other sidechains, L2s, and alternate L1s are the following:

• IOTA will have a long-term focus on RWA adoption.

• IOTA has a rich network of relationships for which to push for RWA adoption.

• IOTA is registered as a legal non-profit in Germany.

• IOTA was the first to have DLT Foundation incorporation in Abu Dhabi which grants it close relationships with the World Economic Forum and ADGM.

• IOTA team has a rich experience with DeFi and sees Velocimeter as a community that enjoys pushing technology innovation to the forefront.

A great place to start your journey into IOTA would be their home page at https://www.iota.org/

Epoch 0 - Thur Oct 17 00:00 UTC

• Coupons will start being distributed

• IVM/wIOTA LP trading is locked so coupons exercise at same rate

• Core pools are live with gauges

• Core pools will receive COUPON rewards

Epoch 1 - Thur Oct 24 00:00 UTC

• 2000 IVM will be minted and distributed based on votes to all the active gauges

• IVM/wIOTA LP trading will be live, but coupons will still be exercisable at market price

Epoch 2 - Thur Oct 30 00:00 UTC

• Emissions will scale relative to active gauges with votes (2000 IVM / gauge with => 1% vote)

For more information on how gauges and coupons work see below or read the V4 article here https://paragraph.xyz/@velocimeter/velocimeter-v4

All the current deployments of Velocimeter are in version 3, but IOTA is the first chain to host version 4.

The following hyperlinked article gives a deeper dive into V4, but here are a few bullets of what Velocimeter will run on IOTA EVM. V4 has:

• veLPs which are LP backed veNFTs with much shorter lock times

  • On IOTA the veLP will have a lock time of 90 days

• Options Exercise fees lump sum to LPers

• No more Rebase

• Emission scale based on active gauge count

• Permissionless gauges

• NFT splitTo()

• Gaugeless LPs earn fees

• VMCoupons for giveaways

Basically, the new system rewards the people that provide locked liquidity with all the fees generated by the system.

For more information on Velocimeter V4 feel free to check out this article. https://paragraph.xyz/@velocimeter/velocimeter-v4

Velocimeter version 4 has successfully completed a full audit with Sherlock.

The audit report can be found here or here.

For more information on Sherlock feel free to check out their site here. https://www.sherlock.xyz/

Graphene is a licensed fork of Carbon DeFi that allows users to make strategy orders in the following forms: Limit orders, Range orders, Recurring orders, and Overlapping Liquidity (aka Concentrated Liquidity).

The major difference is that Graphene has the ability to reward users with other tokens. This article explains the reward system in more depth. 

https://paragraph.xyz/@velocimeter/graphene-rewarder

Graphene will be present on IOTA once the arb bot is set up and deployed there.

The Velocimeter deployment to IOTA will be tighter than all previous deployments. This is mostly due to the veLP design. 

Here are the tokenomics for the initial supply. Keep in mind there is NO MAXSUPPLY and therefore no fully diluted valuation (FDV). 

The token of Velocimeter on IOTA EVM will be known as $IVM

250,000 IVM tokens were be preminted.

• 150,000 IVM tokens were be paired with ~150,000 usd worth of wIOTA and locked in veLP NFTs locked for 90 days.

  • 8% of these NFTs were deposited in the following safe and set aside for the IOTA foundation, set to auto full lock, and used to vote on core pools. Velocimeter will manage this for them and take a 10% management fee for doing so.

  • 30% of these NFTs were deposited in the following safe and used to vote on core pools. Revenue from these votes will be used to support the team.

  • 22% were granted to Velocimeter and used to vote exclusively on the IVM/wIOTA pair, granting all veLPs liquid VM emissions. wIOTA and IVM from earned will be used to deepen POL.

  • 40% are earmarked for future partner grants. These NFTs will not be used to vote until granted to partners. When granted to partners, veLPs will be deposited into a dedicated vault to retain custody. These veLPs will have auto-relock enabled and managed by Velocimeter. Bribes collected will be sent to the partner occasionally. In some cases, members from the partner team can be added to this safe to propose transactions.

Admin Safe - 0x4983A0E6e221dFb2C864E311a88fA55963513D44
Core Voter Safe - 0x0854D423C7016e281E5e588f47988e1728Ca64A1

IOTA Managed Safe - 0xc05809E1760459e9e380E9bF0B46ef24A46Ee98b
Graphene Tank Safe - 0xb0bb991B8d5CBE2000eBb637810E9F6bdB480D72

100,000 IVM tokens were used to mint VMCoupons and used as rewards for community members and previous veNFT holders on other chains. 

Here is a chart that outlines the distribution of the coupons.

These Community Airdrop coupons are NOT going to be airdropped anonymously, rather granted to people that show up to certain events. Holding veNFTs of other chains will just multiply the amount of coupons you receive. This will be outlined in announcements for events in Velocimeter Discord . 

To start, IVM will host the following pools in epoch 1 with gauges

• wIOTA/WETH

• wIOTA/USDT

• WETH/USDT

• IVM/wIOTA

  

And any partners that reach out to us before then.

During epoch 0, the trading of IVM/wIOTA pool will be paused so that all VMCoupons exercised at that time will be quoted the same price. That said, once epoch 1 starts, and emissions go to gauges, the trading of IVM must be enabled. There will be announcements that give you exact dates.

In Velocimeter V4, gauges are permissionless so long as the pair is using whitelisted tokens. On IOTA EVM, the initial whitelisted tokens will NOT be enabled. Therefore NO tokens will be whitelisted at first and the team will monitor the situation and decide when permissionless gauges can be enabled.

The following tokens will likely be the first to receive whitelisting:

• wIOTA

• USDC

• USDT

• IVM

Velocimeter’s first partner will be IOLend. IOLend is a novel lending market that is based on the popular Aave system with a significant upgrade. It incentivizes supplying and borrowing with their native $IOL token to users that have locked IOL/wIOTA LP from WAGMI equal to or greater than 5% of their deposits.

The IOTA community has a liquidity bootstrapping initiative, together with IOLend they are bringing about $500k of liquidity to the IOL/wIOTA pair. To further support the growth of this ecosystem liquidity, Velocimeter will be granting IOLend a 1% veLP from the partner supply allocation. 

This 1% veLP will be deposited into the following safe, and managed by Velocimeter
IOLend Safe - 0xb1AD937525F53CC18e55CB39F572E610698d207A

If you have any questions please feel free to join our discord here https://discord.gg/jeqCTChscz
seek out the IVM channel, and ask.

• LP-backed veNFTs with much shorter lock times

• Options Exercise fees lump sum to LPers

• No more Rebase

• Emission scale based on active gauge count

• Permissionless gauges

• VMCoupons for giveaways

• NFT splitTo()

• Gaugeless LPs earn fees

• Single Pool Pausing

This article assumes you are familiar with ve33 and Solidly forks.

This article uses WETH as a placeholder for all other wrapped gas tokens of various chains. 

In the past, and is the case for all Solidly forks, veNFTs only require users to lock liquid tokens into a veNFT to gain voting power. This separated the liquidity providers from the voters. It also allowed for the creation of veNFTs out of thin air from treasury or pre-minted assets.

In V4, Velocimeter will require lockers to lock VM/WETH liquidity pool tokens for VM. 

These new locked tokens are referred to as veLPs and are still NFTs with decaying voting power based on time to unlock.

This will ensure that voters are in sync with LP holders. It will also removes the ability to mint veNFTs out of thin air.

Due to the fact that LPs will be locking other assets, such as WETH, lock times are drastically reduced.

The lock time of the veLP is yet to be concretely determined, and might even differ from chain to chain. That said, it won't be excessively long but rather something closer to 90 days.

The new veLP design allows holders to elect to auto-relock their veLP to maintain their voting power. If you have this feature enabled any action with the veLP, ie voting, will extend your lock time to the max.

Holding a veLP gains you lump sums of various rewards. 

The fees from exercising oVM will still go to the LPers as they have done in V3. However, now they will be granted to veLP holders on a weekly basis based on their voting power.

Remember voting power decays linearly.

So two users that have the same amount of LPs tokens locked, but with different voting power from differing unlock times will not get equal shares of the WETH revenue from exercising options tokens. The user with the lock time further into the future will get more than the holder that unlocks sooner.

There will no longer be any regular VM/WETH gauge to earn oVM. However, there will still be the ability to vote to direct VM tokens to VM/WETH. Voting on this pool, will direct VM tokens to the veLPs but they will earn them weekly, with the same consideration of lock time decay as with the exercise revenue. They will also be in the form of liquid VM tokens.

These rewards are delayed by one week. So you get last epochs rewards this epoch flip.

One of the most common feedback was that the options for Velocimeter option tokens were too many and too complex. They are now simplified.

So now there are only 2 options:

• Exercise which costs the most and converts oVM into liquid VM

• ExerciseVE which costs less and requires users to bring forward the WETH needed to pair with the VM found in the oVM tokens. This method will always create you a new veLP.

The cost for each type will be clearly displayed on the front end where you are exercising the oVM tokens and can vary chain to chain.

In V4, there will no longer be any rebase of VM tokens to NFTs. This is for 2 reasons:

• veLPs already get liquid VM token emissions based on voting directed to VM/WETH pair.

• rebasing models simply increase inflation as they are most commonly employed.

In the past, emissions were designed with a declining arc where they started highest in week one and are reduced weekly. This design requires a large amount of participation from partners, and liquidity pool creators to ensure that few holders dominate the reward farming.

In V4, this is flipped. Emissions are now a factor of how many gauges there are. The more gauges there are the more emissions are minted. That being said, voting still fully directs emissions. If a gauge gets 5% of the total votes it will only still get 5% of the emissions even though the addition of that gauge may increase emissions by more than 5%. 

At least 1% of the votes must be directed to any gauge to increase emissions. In the case some unpopular gauges are made, and they receive some small amount of votes (less than 1%) they don't increase the total amount of emissions for that epoch. They will however, get their allocated percentage of emissions. Additionally, if a popular gauge becomes unpopular and no longer gets at least 1% of the votes, this will cause emissions to decrease, assuming all other things remain the same. This has the added benefit of the system being able to automatically scale down.

This design does have one difficulty for investors in that there is no longer any Fully Diluted Value because there is no Max Supply of tokens. Velocimeter V4 will print on demand and print forever.

In V4, the creation of gauges have become permissionless as was the original vision of Solidly. However, there are safeguards added to ensure that they are not exploited.

First of all, LPs that want a gauge will be required to pair their assets with whitelisted assets such as WETH. This requires that projects use tokens that have a valid trading path and that siloed $SPIDERMAN/$SUPERMAN LPs never get gauges.

Secondly, because only gauges that are voted on will get emissions, projects will need to obtain voting power. Remember veNFTs are in fact veLPs with WETH in them. So this will ensure further "investment" thought in the plans to get a gauge on Velocimeter.

Thirdly, in the rare case that a user decided to still make a suspect coin liquidity pool with a whitelisted asset, deploy a gauge, and obtain 1% of the votes, these gauges can still be paused. Pausing the gauge will:

• stop that gauge from getting reward allocations

• lock that veLP's votes to that gauge PERMANENTLY

• inflate emissions for a single epoch at worse

Velocimeter has always tried to give to veNFT holders on other chains and V4 will be no different. VMCoupons have been designed with this in mind.

VMCoupons are option tokens that hold VM tokens but can only be exercised to veLPs at no cost. Users will need to bring the Gas token needed to build the LP that is inside the veLP though.

Another factor here is that these coupons do expire. At some time, depending on the campaign of the chain, the team will trigger a cooldown which will start a clock for these to expire. After this cooldown, VM tokens inside unexercised coupons will all be burnt forever.

The burning/expiration features allow Velocimeter to be very generous with these coupons and to give many to many people with the only risk that there be a very large initial supply in the locked LP. Velocimeter wants the deployments to be sustainable, so there is certainly a point where this becomes a selling risk after veLPs unlock. So, the amount of coupons given out will be carefully considered for each campaign, considering both protocol owned liquidity, partner interest, and demand from participants.

In the past, when a user split their NFT, the original NFT was destroyed and two new NFTs were created. Velocimeter found this wasteful, so if you covet your NFT #69, you can keep it by calling the splitTo() function which will simply remove the amount desired and mint a new NFT with that amount, and the same expiry time but also retaining the original NFT.

In the past, Velocimeter always removed the fees from LPs and either sent them as bribes for LPs with gauges or collected them in a tank for LPs that didn't have gauges. This was based on the idea that LPs that didn't create gauges were gaining the benefit of the protocol without giving anything back.

This idea has changed.

Any memecoin creator worth their weight in fecal matter knows that the trading fees are the best way to farm their community. As a result, all trading fees for LPs that don't have gauges will remain in the LP as they do with all Uniswap V2 forks. 

Many Solidly forks have the ability to pause the system in case something were to be suspicious. V4 takes this idea further and allows for the pausing of trading on a single pool. Beside the security incidents, this also allows for VMCoupons to maintain a certain exercise price for all holders. It also allows for other ideas where the pool needs to maintain its price for some period of time.When trading is paused LP provides still can freely enter and exit their LP positions.

Velocimeter is a ve3,3 DEX, with a few changes. It emits options tokens that highly increase the ROI for users that decide to provide liquidity to the core $MVM token by giving them the cost of exercising the options token. In short, emission sellers pay the LPs for their liquidity.

Graphene is a licensed fork of Carbon DeFi. Both allow users to make strategy orders in the following forms: Limit orders, Range orders, Reoccurring orders, and Overlapping Liquidity (aka Concentrated Liquidity).

For more info on both feel free to check

https://docs.velocimeter.xyz/
https://docs.carbondefi.xyz/

And this article on how Graphene is rewarded
https://paragraph.xyz/@velocimeter/graphene-rewarder

Velocimeter was one of the first protocols to deploy to Mantle back in July 2023. For their efforts, Velocimeter was awarded 30,000 $MNT in the Mantle Journey Season Alpha Grant process. All 30K MNT will be used to incentivize the following:

• 20,000 wMNT will be used to incentivize users that create any Graphene Strategies with volume for the wETH/USDT and wMNT/wETH pairs. These tokens will be evenly distributed from May 1st to June 26th (1250 wMNT / week / pool). During this time, these will also get oMVM votes and incentives.

To better understand this reward system see https://paragraph.xyz/@velocimeter/graphene-rewarder

• 10,000 wMNT will be used to incentivize liquidity providers in the MVM/wMNT vAMM liquidity pool for the same time period.
  

  

50% of the Mission Marketing budget of Mantle was distributed already, but there is still another half to win. This leaderboard shows how projects are doing in collecting TXN Mile points.

https://journey.mantle.xyz/en/leaderboard

If Velocimeter is granted a share of the second half of grants, these will be used to extend this campaign and continue to incentivize the same users.

The TLDR of Carbon, and thus Graphene, is tech that allows users to create on-chain Limit Orders, Range Limit Orders, Reoccurring Range Orders, and Concentrated Liquidity (aka Overlapping Liquidity)

Let's take a few mins to highlight each strategy Type.

This is a single, disposable order that will either buy or sell a single token with a predetermined budget. These orders are:

• Irreversible

• Adjustable

• Gas-less on execution for the maker (you)

This is a very similar to the limit order, but instead of chosing a single price point, you select a range. They are great for estimating the local tops or bottoms. These orders are:

• Irreversible

• Great for scaling in or out

• Adjustable

• Gasless on execution for the maker (you)

• Susceptible to being partially filled if your estimate is not fully achieved

These are usually two range, or limit, orders that are combined into one strategy. They are generally used to buy low and sell high, again and again, in an automated way. These orders are:

• Rotating liquidity - When you Buy Low, those tokens are put in your Sell High range

• Adjustable

• Gas-less on execution for the maker (you)

These are similar to the widely know concentrated liquidity popularized by Uniswap V3. However, they do have some features that set them aside. They are:

• Not restricted by ticks

• Not restricted by fee tiers - You can set ANY fee (spread) you like

• Gas-less on execution for the maker (you)

As mentioned above, Graphene is a fork of Carbon but with a few differences. Namely, they are deployed on L2s and alternative L1s. Carbon Defi is only available on Ethereum Mainnet, whereas Graphene is available on Base, Fantom, and Mantle, with more chains coming soon.

Additionally, Graphene rewards users of the system with various tokens.

Let's start with saying that only certain token pairs are rewarded, even though any ERC20 tokens (excluding tax-on-transfer tokens) can be used to create strategies.

Velocimeter, is a ve33 Solidly style DEx. To understand this model check the resources below. But it is the main mechanic that is used to incentivize certain Graphene pairs. veNFT holders can vote on enabled pairs to allocate oVM tokens, specific to the chain, to be earmarked for rewards for that Graphene pair for the current epoch.

When the epoch flips at Thurs 00:00 UTC $VM tokens are minted and placed in a special gauge to wait the results of the following week of Graphene strategies.

When the epoch is over, the rewards are calculated, and allocated, and wait for users to claim them. You can claim them by simply pressing the following button in the Rewards tab on Graphene.

Or, alternatively by going to the following link on Velocimeter . Make sure you're on the correct chain.

https://www.velocimeter.xyz/rewards

In simple terms, Velocimeter is watching all the strategies made on Graphene for the enabled pairs, regardless the order types outlined above. As the week progresses, orders are filled, and Volume is achieved. At the end of the 1 week epoch, all the strategy volume data is compared and the earmarked VM tokens are allocated to the wallets owners of the strategies pro-rata based on their volume.

You can see your current status at anytime in your strategy. You will notice the following important data; Epoch Volume, an Est. rewards

In this snippet, the user's strategy has achieved $8542.20 of volume, which is about 3.87% of the total Volume for this pair. This means, if all things stay the same, he would be allocated 3.87% of the rewards, which currently equate to about $137.06. Which is an APR of about 60% compared to his Total Budget.

Note that things will not likely remain the same, so these are estimated rewards.

Note that the ROI does NOT include reward calculations, and is only a consideration of the USD value of the strategy itself.

As mentioned above, the predictable rewards are the ones that were voted on and are in the form of oVM tokens. However, the system has the ability to add any type of reward to pairs. You can see the different pairs enabled, and the rewards earmarked for that pair by clicking on the Reward tab for the chain you are.

In the following example we look at the rewards on Fantom for the axlUSDC-WFTM pair. We see that both oFVM and axlUSDC are currently rewarding this pair.

There are some very important factors that should be highlighted:

• User funds are only ever exposed to Carbon's audited code

• Reward calculations are done off-chain, but the rewards are held on-chain

• You don't have to hold your strategy for the entire epoch

• Your token order does not matter, ie, WETH-USDC and USDC-WETH will be considered the same, BUT ETH-USDC is not

• The ROI metrics do NOT include rewards and is just a factor of how well the strategy is doing itself.

Here is a list of important links

https://graphene.velocimeter.xyz

Graphene - Automated trading strategies

Graphene is an advanced onchain trading protocol enabling automated limit orders, efficiently adjustable w/ custom price ranges, grid trading like recurring orders, works like a DEX trading bot.

https://www.velocimeter.xyz

Velocimeter

Velocimeter DEX. Innovative ve3,3 with option tokens, low slippage swaps and LP mining rewards.

https://app.carbondefi.xyz

Carbon DeFi - Automated trading strategies

Carbon DeFi is an advanced onchain trading protocol enabling automated limit orders, efficiently adjustable w/ custom price ranges, grid trading like recurring orders, works like a DEX trading bot.

To dig deep on the tech behind Carbon feel free to check out their docs here https://docs.carbondefi.xyz/
Alternatively, you can watch some of Ceazor's videos

To know more about the basics of ve33 you can watch this video

and to know more about all the other tech employed by Velocimeter, please check this playlist
https://www.youtube.com/playlist?list=PLfKk-J8j-NQx72ClANfqDNeDFbnGjkI9m

The main purpose of this contract is to bootstrap initial liquidity TVL for a time and reward those participants. However, this contract can be redeployed at any time to the same effect for future campaigns.

For a new launch, having some amount of liquidity committed to a DEx can help to create stability for the trading experience.

Users that deposit their LPs via a LockDrop will have their token quantity recorded inside, but their tokens will be deposited in the standard gauge for that LP. At the end of the campaign the users can claim pro-rata rewards of any reward token.

A user that deposits on the first day will be rewarded with the same amount of reward tokens as a user that deposits on the last day, assuming they deposit the same amount of LP tokens. The early depositor gets the benefit of being able to retrieve their LP tokens earlier than the latter.

Mantle Launch

For the Launch on Mantle, Velocimeter will deploy several LockDrop contracts for the following pools.

In the table above, you can also observe a ldMVM Budget and a Target TVL. The ldMVM budget is the total amount of ldMVM that will be rewarded if an only if the Target TVL is achieved. If less TVL is achieved, then fewer ldMVM reward will be granted. If more TVL is achieved, there WON'T be extra budget allocated.

For example, if only 1mm TVL is achieved in the USDC-USDT pool by the end of the campaign, then only 50,000 ldMVM will be granted to those users. But, if 2.0mm TVL is achieved then only 100,000 ldMVM tokens will be shared with all lockers

Lock durations for this campaign will be 42 days for each LP

The Rewards

The users will be rewarded with ldMVM (LockDrop Mantle VelociMeter) options tokens. These option tokens, with MVM inside them, can be exercised in the following manner without any exercise cost applied.

• A user can use any quantity of ldMVM to exerciseVe to receive veMVM at no cost. These are 1 year lock voting NFTs.

• A user can use any quantity of ldMVM to exerciseLP to build MVM/MNT LP tokens which will be locked in the MVM/MNT gauge for 3 months. These users will need to supply the needed MNT tokens to build these LPs.

The benefits of the two types of exercising are as follows:

• veMVM holders are able to vote to direct the emissions of oMVM to gauges for LPs that are supported on Mantle Velocimeter, and to collect bribes and fees according to their vote.

• LP lockers will earn both oMVM and the exercise costs that come from users exercising oMVM in the form of MNT tokens.
  

A full explanation of oMVM tokens is beyond the scope of this article, but for those that aren't familiar, here is a small TL-DR.

oMVM has varying costs to exercise, and can be exercised in 3 ways with costs and descriptions below.

• Exercise Liquid - 90% cost - User receives liquid MVM tokens.

• Exercise LP - 40~80% cost - User builds MVM/MNT LP tokens, and pays a cost that scales based on their selected lock time in the gauge.

• Exercise VE - 10% cost - User receives a veMVM NFT that grants them voting rights.

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

The Budget, The Burn, and The Bull

Some simple math using the table above will show that 2.1 million MVM have been earmarked for this LockDrop campaign. However, we have also earmarked 1 million MVM token for partners that wish to take part in the LockDrop campaign. Each partner will have it's own specific parameters, such as lock duration, TVL Target, and ldMVM allocation. These numbers will be announced as they are solidified with those projects.

The team's allocation is completely dependant on the results of the campaign. An additional 15% of the total rewards distributed to LockDrop will be granted to the team to be divided amongst them.

Any and all remaining MVM tokens will be burnt. After this campaign, the only way to obtain MVM, or veMVM will be by farming oMVM to exercise, by buying from the market, or from the MasterBooster. For an explanation of the MasterBooster see this article, or the videos listed above.

In Conclusion

This LockDrop campaign is the newest innovation by the team at Velocimeter. We hope that this will create a more consistent user experience for user, and to reward users that take longer term commitments to the protocol.

We add this innovation to the long list of innovations that we have added to the stack and are keen to bring more in the future.

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 pre-minted 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.

• The ExerciseSortoor that takes a portion of options revenue is uses it to buy emission tokens and sends them to the MasterBooster.

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.
  

Velocimeter is built without upgradable proxy contracts, and uses a module style design. So users have the choice to interact with new contracts only if they wish to. ALL deployed contracts are immutable and your funds can never be moved by anyone but yourself.

A common issue with emitting a reward token for liquidity providers is that mercenary farmers come in with the sole desire to sell them for more of their “safe assets.” Our first innovation, to mitigate this was the use of oTOKENS, which we pioneered for a DEx native emission reward token. But this article is not to introduce oTOKENS. 

Velocimeter is deployed on various chains with various version of a reward token. For the sake of simplicity we will only refer to BVM in our examples, but it might hold true for FVM, CVM, MVM and any future deployments.

Instead, we have built a contract that will encourage the buying of our liquid reward token. It’s called the Master Booster. Instances of this idea have been tested in prod with live users and tokens and we have found it to be successful. Let’s talk first about the testings.

This contract asks users to buy BVM and lock them as veBVM with a boost from extra tokens from the treasury.

So for example, if you had come with 100USD of WETH and bought the veBooster, it would have bought 100USD of BVM  from the market. The resulting amount would be boosted and you would have received something like 150USD worth of veBVM.

• The boost rate is fully adjustable.

Another booster built was designed for the use of projects looking to build up a veNFT for their own use, as well as to bribe voters to vote on their pool. This booster was designed for users to bribe a pool in oBVM, and receive an veNFT immediately for which they can vote on that pool and recoup some of that bribe. 

To illustrate, a project could come with 100USD of WETH, which would be used to buy BVM from the market, convert it to oBVM, bribe that oBVM on their pool and they would receive a 50USD veBVM NFT in addition.

• The boost rate is fully adjustable.

These contracts stood alone, and there is no reason they couldn't be combined, and that is what we did. Furthermore, we added a third boosting option, the LPbooster.

The LPbooster is for users to get a boost if they buy BVM from the market and use this to create LPs and stake them in the gauge with a full lock. 

To clarify, a user can come with 100USD of WETH, this WETH is used to buy an amount of BVM, based on the boost, that is needed to create an LP of 50/50 WETH/BVM, of a value of say 110USD, which is staked in the gauge with a full lock of 60 days.

• The Lock period is adjustable.

• All three boost rates are independent and fully adjustable.

Another issue we had with the boosters is that they required funding from the treasury. Which was troublesome and not automated and decentralized. So we built a system to fix this. We have built a proxy gauge that when it receives emission, like any other gauge, it sends those emissions directly to the Master Booster. So veNFT holders now have the choice to use their voting power to encourage the buying of BVM tokens simply by using some of their voting power each epoch to vote on the proxy gauge.

Velocimeter is keen to bring new tech to our stack at a consistent rate. 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.

Improvements

1. Voting on killed gauge and killing gauge totally

The first notable improvement is the killing/killed gauges interactions. We are now able to kill gauge completely as it has never existed which let's us create gauges of new types for our existing pairs. Moreover, even if the gauge paused you wouldn't be able to vote for it causing misdirection of the emissions.

2. Reset NFT doesn't count as vote anymore

Previously users could not vote after veNFT has been reseted in the same epoch, causing disruption in transferring and selling veNFT. In v3 reset does not count as vote anymore. You are now able to reset veNFT and vote with it in same epoch.

Note, that you can't reset veNFT after you voted with it in the epoch as it will result in votes miscalculation.

3. Split veNFT

Yes, you are now able to split an NFT same way as you were able merge NFTs. When you split an NFT you define the amounts you want to receive. The lock duration of whole bunch will equal the initial lock duration.

New features

1. Adjustable fee per pool

We believe that this is one of the most important feaures of v3 contracts. We can now set an override fee parameter on per pool basis. This essentially allows us to control fees on compounder dumping pools as well as adjusting fees for specific scenarios keeping in mind volumes such pool produces.

2. Set emissions in Minter

Another important addition to this new version is settable emissions in Minter contract within predefined MIN/MAX range. Basically, this means we can reduce or increase amount of emissions on per epoch basis. This becomes especially handy in periods we think we need to incentivise LP more.

3. Stable pools mess resolved

Besides fees and emissions improvements, we have come to conclusion on stable pools mess. Previously, When we whitelist tokens anybody can create pools and gauges for it of any type. In the new version of contracts only protocol can create stable pool.

4. veNFT max lock duration

Maximum duration of veNFT lock has been reduced to 6 months.

5. Multiple Pair/Gauge/Bribe factories

Velocimeter v3 is still 100% immutable. However it comes with possibility for constants improvements and new feature implementations without redeploys.

• a liquidity pool factory registry, which allows us to add new liquidity pool types (eg. concentrated, multi-tokens, custom pools);

• a gauge factory registry, to allow us support maintenance for these new pool type gauges and reward contracts;

• a bribe factory registry.

6. Pushing new LP reward DeFi narrative - $optionTOKEN

Instead of using FLOW as the reward token, Velocimeter uses call option tokens for FLOW as the reward token. This has the benefit of enabling the protocol to accumulate a large cash reserve regardless of market conditions, as well as letting loyal holders buy FLOW at a discount.

It’s best to illustrate this mechanism with an example. Let’s say the price of FLOW is $100, and there is a call option token oFLOW that gives its holder a perpetual right to buy FLOW at 90% of the market price. The protocol issues 1 oFLOW to a farmer Alice, who immediately exercises the option to buy 1 FLOW for $90 and sell it on a DEX for $100. The tally of gains & losses are as follows:

• The protocol: -1 FLOW, +$90

• The farmer Alice: +$10

• The DEX LPs: +1 FLOW, -$100

Compare this to regular liquidity mining where the farmer doesn't pay anything to the protocol:

• The protocol: -1 FLOW

• The farmer Alice: +$100

• The DEX LPs: +1 FLOW, -$100

We have the following observations:

• Reallocation of cash: Using oFLOW instead of FLOW as the reward token effectively transfers cash gains from the farmers to the protocol, and the LPs for the token are not affected.

• Trading off incentivization efficiency for protocol cashflow: In our example, for each FLOW token issued by the protocol, the farmer Alice only gets $10 of rewards instead of $100 in the case of regular liquidity mining, which is less efficient. The higher the discount is, the more efficient the incentivization is, but the less cash the protocol gets.

• Effectively a continuous token sale: Instead of giving away tokens for free in regular liquidity mining, we effectively turn incentivization into a continuous token sale at the current market price, which enables the protocol to potentially capture a lot more cash compared to a one-off token sale since the protocol would be selling tokens at a higher price when the market price goes up.

We believe that there're a lot of use cases for option tokens. Velocimeter aims to incentivise FLOW LP with new FLOW MAXXING Gauge.

FLOW MAXXING Gauge

New Gauge type is a WIP. All following numbers are for demonstration purposes only.

We are currently in work of new gauge type. This gauge will allow us to provide better (higher) discount for redeeming optionTOKEN directly into the LP.

Let's illustrate this mechanism with another example. Let’s say the price of FLOW is $100, and there is a call option token oFLOW. oFLOW gives its holder:

• a perpetual right to buy FLOW at 90% of the market price;

• a perpetual right to buy max locked veFLOW at 10% or even 0% of the market price;

• a perpetual right to LP into FLOW/WPLS pool with 50% discount. In this case holder is restrained to withdraw liquidity for x period of time. When x amount of time passes holder becomes allowed to initiate liquidity withdrawal.

The protocol issues 1 oFLOW to a farmer Alice, who immediately exercises the option to buy 1 FLOW for $90 and sell it on a DEX for $100. The tally of gains & losses are as follows:

• The protocol: -1 FLOW, +$90

• The farmer Alice: +$10

• The DEX LPs: +1 FLOW, -$100

Compare this to second possible choice of Alice:

• The protocol: -1 veFLOW

• The farmer Alice: +$100 worth of veFLOW max locked giving a right to claim voting bribes and fees

• The DEX LPs: 0 change

Compare this to third possible choice of Alice:

• The protocol: 0 change

• The farmer Alice: +100$ worth of FLOW/WPLS LP giving LP rewards in more oFLOW AND WPLS claimed from people who choose to redeem oFLOW immediately.

• The DEX LPs: +1 FLOW/WPLS, +100$

We have the following observations:

• Reallocation of cash: Using oFLOW instead of FLOW as the reward token effectively transfers cash gains from the mercenary farmers and notorious dumping bandits to those who like the protocol and see long term value in earning passive income from veFLOW.

• Trading off incentivization efficiency for protocol tokens LP depth: In our example, for each FLOW token issued by the protocol, the farmer Alice can choose option 3 and provide liquidity for fixed minimum amount of time which is crucial for protocol long term sustainability.

• Effectively a continuous token sale: Instead of giving away tokens for free in regular liquidity mining, we effectively turn incentivization into a continuous token sale with options to redeem into liquid FLOW with less discounts increasing protocol own treasury funds, to redeem into locked FLOW with near-to-zero price decreasing circulation of token and short-term selling pressure, to redeem into LP with higher discount and ability to collect liquid reward gained from those who chose option 1.

In this latest update of Velocimeter v3, we're excited to share numerous improvements and features that will enhance user experience and provide more flexibility for our community. Among these enhancements are adjustable fees per pool, settable emissions in the Minter contract, and the introduction of $optionTOKEN as a reward mechanism. These updates not only provide better control over the protocol but also allow for continuous token sales and cash flow management, ultimately benefiting both the protocol and its loyal holders. As we continue to push the DeFi narrative forward, stay tuned for even more innovations in the coming months.

What is Velocimeter Pro

This system is designed to give projects the ability to use option tokens for bribes and/or rewards. Options tokens generate revenue directly for the community of Liquidity Providers(LPs) that provide to a project's token liquidity pools(LP).

For the sake of this article, we will use TOKEN to represent the project token. The utility of this TOKEN will differ based on the project that created it and will not be described below.

For an audio-visual understanding, feel free to check out the following video. If you would rather not watch, you can continue reading.

Projects that wish to utilize this model, should reach out the the Velocimeter team via the discord. The team, and community, are able to answer any questions that might be had.

Let's start with describing the different type of exercise options that these tokens have built into them.

• Exercise() - This option allows users to convert oTOKEN to TOKEN. Usually this option is the most expensive.

• ExerciseLP() - This option allows users to convert their oTOKEN to an LP token, which are automatically deposited into reward gauges on Velocimeter with a scaling lock time. This lock time Min and Max are determined by the project before the oTOKEN is deployed. The cost of this option scales with the selected lock time by the users. However, a project that wants, can elect to simplify this and have a constant lock time. Furthermore, users will need to bring enough of the other token in the LP to produce the LP, but these tokens are in still theirs.

• ExerciseVE() - This options is only used for project that utilize the veNFT model. However, it allows users to convert their oTOKENs into a veNFT. This is usually the cheapest option.

When a user converts their oTOKEN using a selected option above, they have to pay a fee that is a percentage of Time Weighted Average Price of their TOKEN in the liquidity pool. As highlighted above, this "discount" on the market price will vary based on the choice, but all three options can be set to 0-100% discount.

The fees are in the other token of the TOKEN/othertoken LP. For example in a TOKEN/WETH pool, the oTOKEN fees will be in WETH.

The majority of the fees are sent as rewards to the same gauge that ExerciseLp() users are in, as well as people that provide liquidity without ever having oTOKENs. A small amount, usually 10% of the fee, is sent to Velocimeter to be used for bribes and rewards for other LPs or voters.

The fees not taken by VM are used to boost the rewards for TOKEN LPs. This is in addition any oVM token rewards that are on the gauge via Velocimeter's ve33 voting system or manual rewards.

We wont describe this here, but you can watch this video if you want to understand the ve33 model

Here is a visual representation of the model with an example.

• We can see the project is CEAZOR token with USDC in an LP.

• oCEAZOR is produced and has CEAZOR tokens inside them. They are used to bribe voters (Grandma below) as well as given to LPs.

• DollarBill (the man in the suit) uses ExerciseLP() and joins the project in the CEAZOR/USDC LP gauge.

• BoostedBill (the crazy man) uses Exercise() and pays USDC to all the LPs in the gauge.
  

As mentioned above, the first step is to reach out to the team and ask for integration. The VM team will guild the project thru the followings steps.

• Make sure there is a TOKEN LP setup with any token.

• Make sure the TOKEN LP has a gauge

• Customize and deploy the oTOKEN

• Use the oTOKEN to bribe, incentivize Liquidity, or put to use anywhere ERC20s are accepted.