A First Look at vePERP

There are lots of iterations that have happened since the last time we proposed PERP v2 tokenomics. We plan to launch vePERP in one week’s time if there are no critical issues. The first phase of our new tokenomics rollout will be replacing PERP token payouts for the referral program with vePERP rewards. Finally, we are ready to reveal more technical details and ask for feedback from the community.

vePERP contract was forked from Curve’s voting escrow contract and extended it a little. You can stake PERP and receive vePERP, which is not transferrable. Stakers need to decide the lock time, and the maximum period is 52 weeks (1 year). The longer that stakers lock their PERP for, the more vePERP they will receive, and the vePERP balance will decrease linearly with every block. This mechanism is the same as veCRV.

Let’s say Alice and Bob locked 100 and 200 PERP respectively on 2022/7/25 for 52 weeks, then the balance of each strategy will look like the following table:

One difference compared to veCRV is that vePERP has another balance - we called it “weighted” balance, a concept derived from FRAX’s veFXS. The weighted balance will be 4x instead of 1x if you lock for 52 weeks. Example:

One key difference compared to the “unweighted” balance is that the minimum balance of “weighted” vePERP balance will be the balance of the locked PERP instead of 0.

This design provides us with more flexibility for different reward programs and snapshot voting.

Currently, the contract has a single admin, which is a multi-sig being owned by the foundation team, and there are only 4 things the admin can do:

  1. Emergency unlock: allow early withdrawals of vePERP back into PERP, in case of an emergency.

  2. Whitelist smart contracts to be able to deposit (like how Convex is whitelisted to deposit to veCRV).

  3. Recover ERC-20 tokens (other than PERP) in case anyone mistakenly sends funds to the contract.

  4. Transfer admin to others.

The contract is immutable and will be open sourced.

It’d be great if the community can help to take a look and let the team know what you think. We’ll share more details about the upcoming program based on vePERP once it’s being deployed.