veSVY and Utility
The vote-escrow token (veToken) model is designed to align incentives between users and the protocol by encouraging token holders to stake protocol tokens long-term to earn veTokens. The longer the tokens are staked, the more veTokens are earned per second, which equates to more weight in governance voting and higher rewards. veToken model of Savvy is built on the primers created by DeFi protocols like as Curve, Balancer, Platypus, and Trader Joe.
Savvy uses a no-lockup veToken model, where users can freely stake and unstake their SVY tokens to earn veSVY tokens. The claimed veSVY tokens are non-transferable and non-sellable. If a user unstakes their SVY, their veSVY balance is reset.
Initially, a single staked SVY token starts by generating 0.014 veSVY every hour, and the rate of generation increases the longer SVY tokens are kept staked. veSVY balance can accrue up to 100x the staked SVY balance.
Current and planned future utility of veSVY is as follows:
As explained in detail on the Savvy Booster page, accumulating veSVY includes borrowers in the reward distribution and enables faster repayment of lines of credit.
Savvy is developing Curve-like bribe structure for reward rates for the Booster accross different strategies. veSVY will be used to vote on the weight of the incentives.
Last modified 20d ago