50% of the revenue generated through borrowing is distributed directly to users who stake VALAS. Both lenders and borrowers receive VALAS rewards to incentivize protocol use.
VALAS liquidity mining builds and extends upon a mechanism first introduced by Ellipsis Finance on BNB Chain, and later also used in Geist Finance on Fantom. Rewards are vested for 3 months, but may be claimed immediately for a penalty. The penalty is then distributed to users who choose to lock VALAS for 3 months. This mechanism ensures steady rewards for those who actively commit to the protocol by locking their tokens.
Valas improves on the previous mechanism by setting the penalty fee to 75% initially, decaying linearly to 25% during the 3 month vesting period.
In short, VALAS stakers earn protocol fees, VALAS lockers earn protocol fees as well as exit penalties from users who exit their vests early.
VALAS has a total supply of 3,000,000,000:
- 50% distributed as incentives for lenders and borrowers, released over a period of five years
- 20% allocated as VALAS/BNB incentives for PancakeSwap liquidity providers, released over a period of five years
- 20% to the team, released linearly over one year
- 8% to the treasury
- 2% to airdrops
For the technically minded, the exact monthly emission rate is calculated as:
nis the number of months since launch. Emissions are split 71/29 between lending/borrowing and VALAS/BNB incentives.