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Utilities

There are multiple utilities for $VKA tokens:
  1. 1.
    Reward Boosts:
Staking $VKA can receive a maximum 2.5x boosted emission for LP esVKA emission. Without a boost, the default emission of each user is 1x. Users with boosted multiplier will proportionally receive more $esVKA emission than users who did not stake any VKA. Formula of boosted multiplier is as follow:
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BoostedMultiple=min(UserPosition∗40/100+TotalLiquidity∗UserStakedVKA/TotalStakedVKA∗60/100,UserPosition)∗2.5/UserPositionBoostedMultiple =min(UserPosition*40/100+TotalLiquidity*UserStakedVKA/TotalStakedVKA*60/100, UserPosition) *2.5/UserPosition
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The boosted reward that each user gets will be based on the weighted proportion of their deposit to the weight total liquidity of the pool, and the total esVKA emitted to the vault:
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By staking $VKA or $esVKA, stakers can accumulate 60% of the protocol fees in USDC, resulting in tangible returns in real yield for those who engage with our governance token. These protocol fees include a 15% management fee for Strategic Vaults, and 0.2% of withdrawal fee
Given that the withdrawal fee is 0.2%, assuming that the average turnover of users are roughly 3 months, and the amount of staked $VKA and $esVKA is $800,000, TVL is 4mil (Strategic Vault TVL is 2mil), the real yield APR for staked $VKA will be:
Real yield from = 60%*(0.2%*4*4000000/800000+15%*2000000/800000) = 24.9%
Besides from management fee and withdrawal fees, the esVELA and esHMX collected will be distributed as fee as well. The esTokens will be vested and collected from the underlying protocol by the Vaultka bi-weekly, such that $VKA stakers can also enjoy the additional yield from selling vested tokens. Furthermore, stakers are also eligible for an additional allocation of $esVKA. This supplemental portion of $esVKA is determined at a consistent rate of 10% of the total standard $esVKA rewards from regular emission. Given with the low circulating supply of $VKA token, the initial APR of staking $VKA can bring up to around 60% additional $esVKA yield, when 10% of the circulating supply is staked.
These arrangements serves as an incentive for stakers who hold an optimistic outlook regarding the long-term growth and price trajectory of $VKA. Thus, staking tokens becomes a strategic move to potentially enhance rewards.
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  1. 3.
On a weekly basis, $VKA stakers have the opportunity to participate in voting for the distribution of emissions among various vaults. There's a fixed total emission allocated for all vaults, and each staked $VKA token represents one vote. The total weekly esVKA emissions will be divided in accordance with the proportion of votes each vault receives. This system allows users to cast votes in support of their preferred vaults, creating a positive feedback loop to boost their own rewards.
Protocols can also bribe users to gather additional staked $VKA votes for the purpose of supporting their own vaults, thereby allowing protocols to attract more deposits by rallying a greater number of individuals to leverage their positions in their strategically chosen vaults.
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  1. 4.
    Deflationary Mechanism:
Deflationary mechanism will be implemented on $VKA in two ways: Buyback & burn with protocol revenue, and burning along 90 days $esVKA conversion.
Buyback & Burn: 30% of the protocol revenue will be used to buyback from the open market, which will then be burnt to lower the supply of $VKA.
$esVKA Conversion: All excess VKA through conversion of esVKA to VKA will also be burned. When redeeming esVKA to VKA, users can choose either linearly vested for 90 days or 365 days. If the user chose for 90 days, he/she will redeem in a 1:0.5 basis, which is unlocked linearly in the 90 days vesting period. The remaining half of the VKA will be burnt.
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Staking $VKA will allow users to activate a 1.2x multiplier of their daily total score on the leaderboard, which in turn the score will be transformed to airdrops and consistent additional rewards.