Boosted emissions on Bunni. - by Evix
Bunni is a protocol that aims to encourage liquidity on UNIV3 pairs and make these positions usable within the DeFi ecosystem.
It does this in two ways:
1) Wrapping UNIV3 positions
2) Incentivizing UNIV3 position ranges.
This happens through a system similar to Curve (with some modifications), using a ve model, bribes, and emissions. In this case, $oLIT tokens are emitted.
To gain governance power and have a say in which positions receive incentives (i.e., receive $oLIT tokens), one needs to hold veLIT. veLIT can be obtained by locking BAL 20WETH-80LIT LP token.
In addition to having governance power, holding veLIT also provides more incentives on your positions based on your veLIT balance.
As you can understand, Bunni is interesting because it allows protocols to incentivize liquidity provision on specific ranges of pairs they desire. Some protocols are already taking advantage of this, such as Liquity or Paladin.
Liquis aims to propel Bunni to another level.
The protocol will, therefore, offer a Liquid Wrapper solution for veLIT. This will be based on two tokens:
- $liqLIT: The Liquis wrapper for veLIT
- $LIQ: The Liquis governance token
Liquis allows Bunni liquidity providers to benefit from a maximum-duration lock without having to commit to one themselves. As users exchange $LIT, $oLIT, or $BAL-20WETH-80LIT for $liqLIT, the protocol permanently accumulates veLIT governance power. This allows Liquis to pass on boosted $oLIT rewards to any liquidity provider who stakes their Bunni tokens with the protocol.
When you provide liquidity to a pool on Bunni, you receive Bunni Tokens that represent your position in that pool.
To benefit from the oLIT incentives, you would normally stake these tokens in a gauge within Bunni.
However, instead of doing that, you will stake these tokens in Liquis to take advantage of the veLIT accumulated by the Liquis protocol.
In addition to that, you will also earn $LIQ tokens in addition to your Bunni proceeds.
You can lock $LIQ tokens for 16 weeks to receive vlLIQ.
vlLIQ is the governance token of Liquis
- You can vote on how to allocate Liquis veLIT holdings across Bunni gauges.
- You can direct $LIQ emissions across Liquis gauges.
- You can earn yield in the form of protocol revenue and gauge bribes.
For those who have undergone the exchange to obtain $liqLIT, you remain exposed to veLIT with a liquid position.
Holders of $liqLIT are able to stake it in Liquis to earn a share of the performance fee charged to liquidity providers. That represents 21.5% of the revenues generated by the LPs.
Even though Liquis aims to boost APRs and thus increase Bunni's Total Value Locked (TVL), its primary objective is to accumulate as much veLIT as possible to have significant control over the emissions of Bunni.
Liquis has already planned a Pre-Launch Program.
The aim of this program is to accumulate veLIT and it will last from July 26th to August 23rd.
By exchanging $LIT and BAL-20WETH-80LIT, you will receive both $liqLIT and $LIQ tokens.
The distribution of the 2% LIQ supply will be as follows:
- Week 1: 0.8% of Total LIQ Supply
- Week 2: 0.6% of Total LIQ Supply
- Week 3: 0.4% of Total LIQ Supply
- Week 4: 0.2% of Total LIQ Supply
Participants who join earlier in the program will receive a higher proportion of these LIQ rewards.
The $LIQ tokens received will be subject to a 6-month linear vesting period starting from the protocol's launch.
You can find more information here: https://mirror.xyz/liquis.eth/6fjmuXwkggLODxf-Dg0CXM8uC6UXUPDhcp5Lsx8Jr2Y
