- Value Liquid migration of over $140M of liquidity completed successfully
- Emission Adjustments for various VALUE pools
- Coming upgrades with Governance Vault V2
- Marketing ramp-up
- Value Vaults to leave beta
- Value Liquid to partner with liquidity mining projects for easy startup & governance token distribution
The Value Liquid migration was a success! We migrated over $140M of liquidity from Balancer to Value Liquid, an upgraded product with enhanced UI elements and efficiencies to best serve our users. First 12 hour trading volume reached $4M, making Value Liquid one of the top 5 DEXes in TVL and Top 15 in trading volume in the DeFi space.
Among many other advancements, in particular Value Liquid fixes many quality-of-life issues with Balancer, including lack of support for Tether and certain ERC20 tokens. More information about Liquid can be found here: https://valueliquid.info/
The current 0.05% trading fee is collected under the contract 0xEbC44681c125d63210a33D30C55FD3d37762675B, which can be called by governance. We will later hold a community vote to decide specific distribution and use of these fees.
1. Emission Adjustments
When we founded the protocol, the vision was to have a broad distribution rate and sustainability. For this reason, we chose a higher token supply and a longer distribution time. The liquidity pool (previously on Balancer) ratio was set to 98/2 to minimize risk and to protect our LPs as much as possible.
In retrospect, this vision was a massive success. Value DeFi (previously known as YFValue) Protocol was able to maintain over 200mil$ TVL since inception on 17-August-2020. As the yield farming landscape has changed dramatically since, we are delighted to have kept such a high TVL over time in spite of the many other options and opportunities available to our users.
At this juncture, the distribution of YFV/VALUE is sufficiently broad and decentralized. Value DeFi is currently one of the projects that has the highest number of token holders.
As such, from our own internal discussions and taking the feedback of the community into account, we have decided to cut the emission rate of existing, lower risk farming pools in order to focus on meaningful development of the ecosystem:
The original Governance Vault has already stopped emitting rewards today (10/07/2020 @ 9:31am UTC)
Governance Vault v2, which will be available later this week, will experience a 60% VALUE emissions cut, or down to 0.2 VALUE/block, but the emission period will increase to 180 days
Low VALUE Ratio Pools
Six lower risk and low liquidity farming pools (YFI, KNC, REN, LEND, COMP, SNX) will stop emitting VALUE rewards at (October 08, 2020 16:00:00 GMT+0), while 5 others (USDC, LINK, WBTC, WETH, vUSD) will have their emission rates cut by 50%, or an effective reduction from 10 VALUE/block to 3 VALUE/block aggregated across all pools.
While these changes may impact the TVL in the short term, after careful analysis we determined that the 6 above pools contribute very little to the ecosystem (non-contributing or “dead” capital). The trading volume on these pools is also very low, which is why we have chosen to focus on the liquidity pairs with higher trading volume and engagement.
High VALUE Ratio Pools
The higher VALUE ratio pools (higher IL risk), namely VALUE/DAI 20/80 and VALUE/WETH 10/90 with current emission of 0.26 VALUE/block, will receive an emission increase as detailed further below.
We will add a VALUE/USDT 20/80 liquidity pool.
UPDATE 10/8/20: The VALUE/USDT 20/80 Liquid incentive pool will be postponed until the release of Liquid Phase 3.5 for technical reasons (tentative release date estimate in 2 weeks). As such, the planned 10.2 VALUE/block emission from today until its release will be reduced to 9.8 VALUE/block.
We will add a VALUE/ETH 50/50 UNIv2 liquidity pool. In order to demonstrate the technical ability of our new, advanced migration contract, we decided to include this pair on Uniswap for the incentive program. LPs of this VALUE/ETH pair will be able to stake their UNIv2 LP token to the new pool to receive VALUE rewards. 48 hours after rewards begin, we will perform the liquidity migration from Uniswap to Liquid.
The emission rate of these above pools are as follows:
Remaining Rewards and Additional Mechanics
The last 0.5 VALUE/block emission will be reserved for our upcoming Phase 2 of Value Vaults, which contain 5–7 vaults in total. Details will be shared shortly before release.
More liquidity pools subject to governance votes might be available up to the community. Partnership pools will be announced later when details are final.
The MasterPool contract 0x1e71C74d45fFdf184A91F63b94D6469876AEe046 that manages emissions for existing pools and the MinorPool contract 0xcC51169c21158084371C63BC260abA4AfdcfBd2f that manages high VALUE ratio pool emissions are the only addresses that are able to issue VALUE.
Summary: Current VALUE emission is effectively cut from current 10.5 VALUE/block emission to 5.2 VALUE/block for next 15 days and down to 2.2 VALUE/block for 30 days.
2. Governance Vault v2
Governance Vault v2 is expected to be released later this week to replace Governance Vault v1 with new features:
- VALUE can be staked
- Profit from farming strategies will be auto-compounded
- Locking VALUE in the vault for an extra period of time will boost VALUE yield
- Governance Vault v2 will support multiple strategy farming as well, our state-of-the-art farming innovation
3. Marketing Efforts:
Since the start, we have been focusing mainly on building the products, and bringing innovations for the betterment of our community. While certain marketing efforts have occurred, we are fully aware that it’s time to step up marketing. Aligning with our vision and mission, strong marketing is needed to increase awareness and understanding of our ecosystem and how users can benefit, thus enlarging and strengthening our community.
Several proposals exist from both community members and marketing agencies. While there are many great ideas in these proposals, we are still working on consolidating them into a finalized, concrete plan.
While our overarching marketing strategy is finalized, other marketing efforts will be carried out in various areas including but not limited to branding, design, CM, partnerships and more to come.
4. Value Vaults
Our Value Vaults will emerge from beta status after audit completion from security firms. Vaults Phase 2 will feature even more technical advances beyond our previous announcement from our extensive R&D effort to keep up with the high demand in the yield farming landscape. Details will be available shortly upon release. Key components: Auto-compounding, Multiple Strategies, Flexible Asset Deposits
5. Value Liquid
So far, we have achieved our interim goals with the release of Value Liquid phases 2 and 3.
Phase 3.5, which was not expounded upon in the original announcement, will focus on partnerships and launches.
Projects that are new to yield farming may use Liquid technology to bootstrap their launches. Instead of dealing with forking the famous SNX smart contracts themselves to distribute the new yield farming token, teams can use Value Liquid’s Farming Pool Creation UI to create the desired liquidity pools and pairs along with flexible ratios, customizable fees, and token contract minter approval for the Liquidity Pool.
Liquidity providers for these projects will automatically receive the farming token after providing their liquidity at the Farming Pool.
Thanks for taking the time to follow our October roadmap.. We will continue to provide roadmap updates over the next couple weeks. In particular, please look forward to additional exploration and experimentation on topics such as liquidity-locking for increased rewards and applications of vUSD/vETH.