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VX This, VX That, What is vxPremia?
vxPremia is the all-in-one revenue share, utility, and governance omni-chain token!
Weka
June 15, 2024
Premia Blue’s economic flywheel is designed to reward committed users and contributors while ensuring the long-term sustainability of the protocol.
At the core of this engine is Premia’s native token which directly facilitates governance votes, emissions control, and revenue share among other utilities.
But wut the heck is vxPremia? You might’ve heard of ve-tokenomics, but may never have heard of this vx stuff before. Well, that’s because it’s a novel mechanism drawing inspiration from Curve’s vote-escrow tokenomics!
Let’s talk about it – what vxPremia is, how it’s different from traditional vote escrow, and how it utilizes LayerZero to go cross-chain.
What is vxPremia?
Wallets can stake their Premia tokens to partake in governance along with a pro-rata share of economic extracts from the protocol.
Staked tokens become vxPremia when locked for a chosen period and cannot be unlocked or withdrawn until that period concludes. The longer the lock, the more rewards your vxPremia position accrues!
Premia’s dual-token model serves four main purposes: utility, revenue share, governance, and emissions control.
Omnichain Functionality (LayerZero)
Moving vxPremia across chains is a quick and effortless transaction; the bridge burns vxPremia on the source chain, and mints vxPremia on the destination chain.
In the LayerZero transaction, the boost modifier is automatically carried to the destination chain and combined with local vxPremia.
However, Premia Blue is currently only maintained on Arbitrum, resulting in the most fees being accrued there. If you haven’t already, I recommend bridging your vxPremia to Arbitrum using the in-app bridge at app.premia.blue.
vxPremia holders receive 80% of protocol fees denominated in USDC. Staking accrues rewards from multiple sources, namely trading fees and Options Liquidity Mining.
Additionally, holding increasing amounts of vxPremia entitles users for a trading fee discount of up to 60%. For the specifics, check out the Premia Docs.
Governance
Holding vxPremia enables users to vote on governance proposals inside the Premia Snapshot! Join to help us shape the future of finance 😽
Emissions Manifold Control
The amount of OLM rewards allocated to each Strategy Vault is managed by vxPremia voters. In other words, holders can direct their vote to any directional pool (call or put) on Arbitrum.
38% APR 👀
Voting is completely liquid and applied immediately upon the next pool update transaction; you don’t have to wait until the next epoch as there are none!
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