Article Summary
The Verse Staking Program, which rewards participants with VERSE for staking their VERSE on Ethereum and Polygon, is being upgraded to Verse Staking V3. The new version will offer improved liquidity and capital efficiency, and users will be able to earn BTC by staking their VERSE. To date, the program has achieved $755k+ in Total Value Locked and $180k+ in new TVL per month, with 13% month-over-month user growth. However, the liquidity locked in the current version of the program is not capital efficient. The new version aims to solve this issue while maintaining alignment with Bitcoin opportunities.
What This Means for You
- Improved liquidity and capital efficiency for staking VERSE
- Earning BTC by staking VERSE, which aligns the Verse Ecosystem with more Bitcoin opportunities
- Continued rewards for staking VERSE, with the potential for additional rewards as a liquidity provider in the VERSE-tBTC pool
- More capital-efficient use of staked funds, encouragement of more traders on the pool, and reduction in freeloaders
- Strengthened governance through increased voting power for participants in Verse Staking V3
Original Post
Proposal: Verse Staking V3
The underlying staking contract will be upgraded for improved liquidity and capital efficiency. In Verse Staking V3, users would deposit VERSE to participate, a proportion of the deposit will be swapped to tBTC, both VERSE and tBTC will be deposited into a 80/20 VERSE-tBTC Balancer Pool, the associated LP tokens will be deposited into the Verse Staking V3 contract, and the user would earn variable APY on the staked LP tokens. If the user withdraws, VERSE and tBTC will be redeemed using the LP tokens, which includes any rewards earned from providing liquidity on the VERSE-tBTC Balancer Pool, tBTC will be swapped to VERSE, and VERSE will be sent to the user, along with any variable APY earned for the duration of the stake.
On Ethereum:
- Launch an 80/20 VERSE-tBTC Balancer V3 Pool
- Create a seamless upgrade contract to migrate Verse Staking V2 positions into Verse Staking V3 positions
- Halt rewards on the Verse Staking V2 Program on Ethereum
- Double voting power (2x) for V3 participants in Verse Community Proposals.
On Polygon:
- Create an 80/20 VERSE-tBTC Balancer V2 Pool
- Create a seamless upgrade contract to migrate Verse Staking V2 positions into Verse Staking V3 positions
- Halt rewards on the Verse Staking V2 Program on Polygon
- Double voting power (2x) for V3 participants in Verse Community Proposals.
Considerations:
- Existing participants in Verse Staking V2 may have difficulty migrating, leading to a loss of participation in Verse Staking V3. However, an upgrade contract would facilitate migration.
- Prospective users of Verse Staking V2 may have difficulty participating. Wrappers and gas-less transactions could help simplify swapping and depositing the correct amounts of VERSE/tBTC.
- As the underlying staked asset is a LP token, participants in Verse Staking V3 are exposed to Impermanent Loss. However, IL is less for an 80/20 Balancer pool compared to a traditional 50/50 pool.
Voting:
Verse Staking V3 rewards may change from time to time. Currently it’s tBTC at 20%+ APY but this will change. The community will decide between Option 1: Yes, proceed and Option 2: No, do not proceed. The voting period will commence on 8 February 2025 and conclude on 22 February 2025.
Key Terms
- Verse Staking Program
- Capital efficiency
- Liquidity pool
- Balancer Pool
- Impermanent Loss
ORIGINAL SOURCE:
Source link
