CVI - The Crypto Volatility Index
  • Introduction
  • CVI Index
    • CVI Index
    • Index Calculation
    • Understanding The Index
  • CVI Ecosystem
    • Overview
    • CVI V3
    • CVI V4
      • Hedged Theta Vault
      • Ultra CVI & Leverage
      • Real-Time Position Management
      • Integrated Bridge & Swap Function
      • Referral Program
      • Improved UI & UX
      • Execution gap
    • Volatility Tokens
      • Volatility Tokens Technology
      • Volatility Tokens Usability
    • Theta Vault
      • Hedged Theta Vault (V4)
    • $GOVI
      • Real Yield
    • Staking
    • Platform Fees
  • Deployed Contracts & Code Audits
    • Contracts (Arbitrum Chain)
    • Contracts (Previous version -Ethereum Mainnet)
    • Contracts (Previous version - Polygon Chain)
    • Audits
  • Learning Resources
    • CVI Platform Tutorial
    • CVI Whitepaper
    • CVI V3 Litepaper
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  1. CVI Ecosystem
  2. $GOVI

Real Yield

Objective and Approach

CVI aims to closely align the yield generation with the protocol's overall success and growth. This strategy involves a dynamic distribution of esGOVI emissions among key stakeholders: stakers, liquidity providers (LPs), and traders. The distribution is structured as follows:

  • Stakers: 60% of esGOVI emissions are allocated to those who stake their tokens in the protocol.

  • Liquidity Providers: 20% of esGOVI emissions are dedicated to LPs who contribute to the liquidity pools.

  • Traders: The remaining 20% of esGOVI emissions are distributed to active traders on the platform.

Milestones and Transition to Real Yield for GOVI Stakers

To ensure the sustainability and scalability of the yield model, CVI has established specific milestones. Real yield (in USDC) will be initiated upon achieving two out of the following four milestones:

  1. Theta Vault TVL: Achieving a median 30-day Total Value Locked (TVL) in the Theta Vault exceeding $10 million.

  2. Trading Volume: Reaching a median 30-day trading volume of more than $0.5 million.

  3. Yearly Fees to Staked GOVI Ratio: Attaining a set ratio of yearly fees to staked GOVI, with the specific target ratio to be determined by community vote (options being 3%, 4%, 6%, 8%).

  4. Leveraged CVI Token and Hedging Vault Launch: Successfully launching the leveraged CVI token ($UCVI) and integrating the Hedging Vault, with a 60-day period of active protection following the launch.

Fee Allocation and Real Yield Reward

Upon meeting two of the specified milestones, CVI will implement the following fee allocation strategy:

  • Growth and Development: 15% of the collected fees will be earmarked for the continuous growth and development of the CVI platform.

  • Real Yield Rewards: The substantial portion, amounting to 85%, will be allocated as real yield rewards to GOVI stakers.

In essence, this structured approach to yield distribution is designed to ensure that the rewards are reflective of the platform's performance and growth, fostering a sustainable ecosystem that benefits all participants.

Previous$GOVINextStaking

Last updated 1 year ago