🪙Explaning $veLARA
Everything about the vested LARA token
Maturity period debunked
As voted on by the Lara community in its first DAO proposal, $veLARA tokens have a maturity period of 6 months and a linear exchange rate. This simply means that from the moment you claim $veLARA tokens as a staking reward you need to wait 6 months to be able to redeem it 1:1 in the Lara Protocol. You can redeem it earlier too, but it will proportionally be worth less $LARA the quicker you redeem it. All $veLARA redeemed is instantly burnt.
Example:
Bob claimed 1000 $veLARA as staking rewards today. If he is:
redeeming them the next day, he's getting a very very small amount of
$LARAfor it.redeeming them in 3 months, he's getting exactly 500
$LARAfor it.redeeming them in 6 months, he's getting the full 1000
$LARAfor it.redeeming after the 6 months have passed doesn't add a multiplier to the value, Bob will still get 1000
$LARAfor his$veLARA.
What $veLARA is vs isn't
The token is a vested version of the token. It serves as a way of locking supply and optimizing emission rates of the underlying token.
Why is $veLARA good for the $LARA ecosystem
Through introducing
$veLARA, we keep inflation and additional token emissions as low as possible.$veLARAserves as a receipt for your future claimable$LARA.Having vested staking rewards we're enforcing protocol usage by minimising negative price pressure.
Enhances the voting power of people who actively partake in the Lara Protocol.
What $veLARA isn't
Although you have full access to trade or transfer
$veLARAtokens, they are not designed to be a freely tradeable asset with a secondary market in place.
When someone claims $veLARA tokens as staking rewards, only that address can redeem them for $LARA.
Example:
Bob staked 1000 $LARA and claimed 50 $veLARA as staking rewards. Then, Alice buys the 50 $veLARA from Bob and then tries to redeem $LARA tokens for it. Alice will fail redeeming because Bob is the only one that can exchange those 50 $veLARA tokens for $LARA.
Last updated