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Projects wishing to pool liquidity with opxVELO will receive 1 vote for every 1 opxVELO in a pool with their project's token. A weekly snapshot captures the total opxVELO paired with partner tokens and allocate votes from the opxVELO project's position accordingly.
This allows projects three ways to receive a boost in their APRs for such pools:
- 1.They can bribe each week, providing incentives for users to pool opxVELO with their token.
- 2.They can use their own project's veVELO position to provide incentives for an opxVELO pairing.
- 3.They can bulk mint opxVELO and pool it without incentivizing it.
This creates two unique opportunities for projects:
- 1.Projects that farm VELO lock it to grow their veVELO position. With the vote-matching project, partners are able to mint opxVELO and pool it, retaining their liquid exposure while simultaneously growing their exposure to veVELO incentives for their project's token.
- 2.When opxVELO is trading below a 1:1 ratio to VELO, projects can purchase opxVELO on the spot market and pool it to increase exposure to veVELO and opxVELO at a discount.
Incentives collected by each vote-matching pool are re-allocated to their respective pool weekly, returning them to the Velodrome ecosystem. Fees collected from these pools will be paired and deposited into a corresponding OpenXSwap Vault ensuring perpetual liquidity provision for opxVELO and their token that grows over time for participating projects, acting as a liquid rebase.
This means that 100% of all incentives and fees collected by the opxVELO project return to the Velodrome ecosystem either in the form of recycled incentives or deeper liquidity.
If your project is interested in this program, please open a ticket on our Discord.