Simple Summary
The goal of this post is to begin the process of formalizing a veTokenomic-like design for B.Protocol
Abstract
veTokenomics refers to a tokenomic design created by Curve Finance. Curve employs two tokens CRV/veCRV (vesting CRV). CRV holders can vote lock their CRV into the Curve DAO to receive veCRV. The longer they lock for, the more veCRV they receive. Vote locking allows you to vote in governance, boost your CRV rewards and receive trading fees. The longer you lock your CRV for, the more voting power you have (and the bigger boost you can reach). You can vote lock 1,000 CRV for a year to have a 250 veCRV weight. Each CRV locked for four years (the maximum years allowed) is equal to 1 veCRV. It is also important to mention that a user’s voting weight decreases linearly over time.
I am proposing a variation on the original veTokenomic design, that retains and rewards users, as well as creating long term stablecoin allocations for all B.AMMs.
Motivation
The community has made clear that it desires BPRO utility, rewards for long term governors of the protocol, and retaining stable liquidity for B.AMMs. Staking is one possible path, and I have long believed that veTokenomics offers an interesting and valuable path for the project.
Specification
Given the structural differences between Curve and B.Protocol some changes must be made to the original design. I propose users can time lock BPRO in the vesting contract as well as tokenized B.AMM stables in exchange for veBPRO and bSTABLE ( vesting bLUSD, bUSDC, etc) tokens for the same durations as veCRV (i.e. up to 4 years with linear decay on both ve/b-assets). The gauges for each B.AMM can be voted on by both veBPRO and bSTABLE in exchange for a share of the BPRO and B.AMM fee emissions. BPRO and B.AMM fee emissions are split 50/50 between bSTABLE providers and BPRO vesting then distributed according to the following:
{ veBPRO voting for the gauge } / {total amount of veBPRO }
or
{ bSTABLE voting for the gauge } / {total amount of bSTABLE }
veBPRO/bSTABLE gauge weight votes will eventually serve two purposes, distribution of BPRO/B.AMM fees and creating an additional layer of stablecoin liquidity that reacts to gauge weights. This bSTABLE pool of B.AMM assets can be used for yield aggregation and liquidity provision during downturns but this functionality should staged, with the initial stage focused only on the vesting.
I also propose using 4 million BPRO over the next 4 years as the emission rewards to gain new users and help procure stable liquidity in all B.AMMs.
Implementation :
This is an informal proposal!
Signaling your support will be the next step to let the team know you want it formalized into code.
Here is a veToken implementation as a starting place. I’ll need some help from @yaron but I think it should be doable to make the above changes relatively quickly.
Proposal:
B.protocol should adopt veBPRO/bSTABLE tokenomic design
