Overview

VeVault Is a yield bearing NFT

VeVault Protocol enables sustainable, decentralized liquidity for vote-escrowed NFTs (veNFTs), empowering holders to efficiently convert locked governance and yield positions into liquid assets, preserving protocol value, and incentivizing active long-term participation.

How It Works

eVault allows users to deposit their veNFTs into transferable VeVault NFTs, unlocking 20% immediately for instant liquidity, while the remaining 80% unlocks gradually, enhancing voting power and yield over time. Holders can burn VeVault NFTs to redeem liquid Vault ERC20 tokens, which simultaneously redistributes value across remaining holders.

Yield Distribution Models

VeVault is redefining NFT finance by unlocking new possibilities for asset holders, investors, and DeFi enthusiasts. Whether you’re looking to free up capital or explore new trading opportunities, VeVault provides the tools to make veNFT liquidity seamless and efficient.

Initial Unlock and Yield Accrual:

• 20% of vote proxy and redeemable VeVault NFT value unlocked immediately upon minting for instant liquidity.

• Remaining 80% progressively unlocked over the designated vesting period, enhancing the vote proxy and overall yield position over time.

• VeVault NFTs can be burned, destroying the underlying voting proxy (beneficially redistributing value across remaining holders), in exchange for the liquid Vault ERC20 tokens

Yield Allocation (Short and Long-term strategy):

Proposed initial yield split:

• 90% distributed directly to VeVault NFT holders.

• 10% allocated towards liquidity incentives for Vault ERC20 token holders.

Adaptive yield allocation strategy:

• Implement dynamic yield distribution based on protocol maturity, liquidity health, and user participation metrics.

• Gradually adjust the 10% liquidity incentive to incentivize greater ERC20 token liquidity initially, tapering as liquidity stabilizes and long-term value accrual to NFT holders becomes prioritized.

Protocol Liquidity and Tokenomics

VeVault NFT:

• Transferable locked positions representing underlying veNFT assets.

• Provide voting rights and ongoing yield accrual.

Vault ERC20 Token:

• Liquid token minted upon redeeming VeVault NFTs, proportional to their unlocked value.

• Integrated burn mechanism to reduce supply and encourage long-term holding.

Liquidity Bootstrapping:

• Initial liquidity seeded by deposited veNFT positions and external liquidity provider assets.

• Protocol-owned liquidity managed via decentralized smart contracts to optimize yield distribution and maintain liquidity pool balance.

Governance and Decentralization

• DAO governance structure with voting rights embedded in VeVault NFTs.

• Transparent decision-making through publicly auditable blockchain voting.

Future Roadmap

• Launch dynamic yield allocation and adaptive liquidity incentive strategies.

• Expansion through integrations with additional DeFi ecosystems.

• Ongoing refinement based on community governance and market evolution.