Governance Vault

Vicuna's Governance Vault is built upon the well know Ve model, which we believe effectively aligns platform incentives with dedicated token holders.

You have the flexibility to choose the lockup duration for your ViFi-stS LP's, ranging from a minimum of 1 week to a maximum of 2 years. In return, you will receive VeViFi LP, representing your stake in the governance rewards pool and gives you voting power when the governance mechanic is fully deployed.

The quantity of Ve tokens you receive is determined by your deposited LP amount and the remaining lockup duration, with 1 ViFi-stS LP locked for a year equating to 1 VeViFi. Your VeViFi balance gradually decreases over time and reaches zero upon unlocking.

Locking your tokens for an extended period results in a larger VeViFi LP allocation, enhancing your rewards APY and governance voting power. For instance:

Example 1: Jake initially locks 100 ViFi LP for 52 weeks and receives 100 VeViFiLP. After 26 weeks, his VeViFi balance decreases to 50.

Example 2: Jessica initially locks 100 ViFi for 26 weeks, receiving 50 VeViFi. Later, seeking greater rewards, she extends her lockup to 52 weeks, obtaining an additional 50 VeViFi, totaling 100 VeViFi in her balance.

Your Ve position will be represented by a VeNFT which is a ERC-721 token. This VeNFT will represent your position with underlying assets. The VeNFT is tradeable, Transferable and you can merge multiple together to consolidate your positions.

Type of VeNFT	Contract address
VeViFi LP VeNFT	0x.....

Rewards for Participating in the Governance Vault

1 - Revenue Share Model: Participants are entitled to a part of the platform fees due to our revenue sharing model. The more VeViFi LP you own the higher your rewards from the platform revenue sharing model. 2 - Governance Voting: More VeViFi means more voting power. You as a participant can weigh in on Governance choices for the project aswell as weight in on what pools to incentivize. Governance will be done through https://snapshot.org/#/.

3 - Token Rewards: By staking your ViFi into the Governance Vault you will be rewarded with an staking APR for additional ViFi tokens.

4 - Additional perks due to the vBoost mechanic: The vBoost feature enhances farming by offering higher leverage, reducing the risk of total loss through partial liquidations, and promises additional improvements in the future.

Revenue Share Model in more detail:

When you hold VeViFi LP you are entitled to a part of the protocol's revenue. This is on top of the deflaitionary measures already implemented. The aim is for a sustainable token with a good price trajectory. The Revenue is generated by:

• Spread on interest rates

• Liquidation fees

• Performance fee for auto compounding

• Fee earned from advanced strategy vaults

Allocation per pool type

• The ViFi-stS LP token pool will earn 100% of the fees distributed to the Governance Vault

• Fees will be converted to ViFi (80%) and stS (20%) tokens before being distributed so you could instantly auto compound it into the 80/20 pool on BeethovenX

Strategy tips:

• To guarantee that you consistently achieve the highest APY on your governance rewards, you have the option to prolong your lockup duration, up to the maximum of 52 weeks, each week before the snapshot is captured.

• You will also be able to use the "Continues locking" feature to always stay at the maximum locking length of 52 weeks.

• You retain the flexibility to either increase your ViFi holdings in your existing locked position or extend the duration of the lockup at any given moment.

• It's important to note that each wallet address can only maintain one locked position. If you desire multiple locked positions with varying durations, you can utilize separate wallets to achieve this.

• Promote Vicuna Finance the more volume and TVL the better the price action and the more ViFi tokens will be burned in addition to a higher APR in the governance vault.