Welcome to the veTETU Utility page, where the benefits and features of holding veTETU are showcased. As a holder of veTETU, users have access to a range of utilities that can help maximize returns and improve the experience on the Tetu platform. These utilities can be the primary reason why individuals decide to invest in Tetu. The page aims to provide an overview of the various utilities available to veTETU holders and how they can help users achieve their financial goals in the DeFi space.
Holders of veTETU have the ability to vote in reflection gauge proposals. Tetu has acquired governance in Balancer through tetuBAL product, which allows Tetu to influence the BAL emissions. veTETU holders can vote for any Balancer gauge in the reflection gauge proposals and then receive bribes from third parties. Here is the link to the Discord channel where gauge reflection proposals are announced.
Holding veTETU tokens provides users with the opportunity to receive rewards. These rewards are a share of the fees generated from Tetu's various products, including its farming vaults. By holding veTETU, users can earn a share of the profits made by the platform. Also, veTETU holders can receive bribes if they vote for gauges with bribes attached. In DeFi, bribers can attach a bribe to a particular gauge to incentivize liquidity of desired vaults without spending too much. Voters that accept bribes earn an additional profit.
veTETU holders are able to improve their earnings and APR by using their veTETU to boost the vaults that they are farming. The veTETU boost system is similar to the Curve Finance boost system. The final result of boosting is influenced by the TVL and veTETU power from everyone in the vault.
Users can vote for the auto-compound ratio on the strategy page using their veTETU tokens. This vote determines the allocation of profits generated by Tetu, defining the percentage of profits that will be allocated to auto compounding in the underlying vault and the portion that will be distributed to users. Users are also able to vote on platform attributes such as the Profit Share ratio and Investment Fund ratio. This allows users to have a say in how profits are managed and can potentially increase their earnings.
Holders of veTETU have governance over how profits earned by the platform are distributed, including how the emissions of TETU are distributed to incentivize vaults in Tetu.
Through the Tetu governance system, users holding veTETU tokens can vote for the strategies they prefer to be implemented in farming. By casting their vote, users can have a say in how the platform's resources are allocated and which strategies are pursued.
veTETU is a non-fungible token that serves as the foundation of TETU V2, an improved version of the TETU platform. It is designed to improve capital efficiency, liquidity, and asset management within the TETU ecosystem.
It's non-transferable: it cannot be transferred or exchanged between different users or accounts. This ensures that the asset remains under the control of the original owner and cannot be used for illicit or unauthorized purposes. Also, it allows for fair locking of assets, as it eliminates the possibility of prematurely unlocking them through the sale of NFTs.;
It's lock period range from 1 to 16 weeks: it provides more flexibility and control over the tokens;
The voting power of veTETU decreases linearly during the lock period;
Rewards and a vote weights system: The rewards and vote weights for the asset depend on the power, meaning that the more powerful the asset is, the greater the rewards and vote weights will be. This is designed to incentivize users to acquire more veTETU assets and/or extend the lock-up period.
veTETU voting power determines the rewards and vote weights on the TETU platform. Voting power can be increased by extending the lock time or increasing the locked amount.
You can find the information on how to get veTETU in our Medium article.
If you own one or more veTETU tokens, there are two options to manage them: Merging and Splitting. The merging feature allows you to combine two veTETU tokens into one. On the other hand, the splitting feature allows you to divide a single veTETU token into two separate NFTs. Instructions on how to use these features can be found in the Medium article mentioned earlier.
veTETU still maintains the Profit Share properties of the Tetu Platform, receiving a share of Tetu's profits. The percentage of profit distributed to veTETU holders is called the PS ratio, and it is decided by the veTETU holders themselves through DAO voting. Currently, the PS ratio is 10%.
The veTETU token governs the tetuBAL token within the 20WETH80BAL-tetuBAL LP. However, your influence over tetuBAL is not solely determined by your veTETU voting power. It is also influenced by the token ratio of tetuBAL to other tokens within the LP and the underlying bpt token for with veTETU.
veBal Mainnet voting address - https://etherscan.io/address/0x84169ea605619c16cc1e414aad54c95ee1a5da12
The calculation of total voting power is dynamic and subject to real-time changes. The total supply of tokens varies continuously, making it challenging to determine an exact figure. To address this, a snapshot is taken at a specific block height during each voting round, fixing the voting power for that round. Consequently, the voting power fluctuates with each new voting round.
Consider the provided screenshot as an example. The current round was snapshot at block height 40355031. As depicted in the numbers, the total supply is different because it evolves in real-time, particularly as the veTETU expiration date approaches, resulting in voting power decay. When you lock BPT tokens into veTETU, the user interface displays your voting power and its percentage relative to the entire pool.
Please note that your voting power is calculated based on the BPT tokens and not the individual TETU tokens. To illustrate this, let's examine two scenarios:
Locking TETU (for illustrative purposes, as TETU alone cannot be locked or staked).
Locking TETU-USDC BPT tokens.
In the case of locking 1 TETU for the maximum lock period, the user will receive 1 veTETU. However, when locking LP tokens, the reference is the LP tokens themselves, which contain both TETU and USDC.
For instance, let's assume locking 1000 TETU for the maximum lock period results in 1000 veTETU. If 1 LP token comprises 1000 TETU and 100 USDC, according to the veTETU power rate of 25%, it will provide 250 veTETU.
Now, suppose the TETU price drops, and the locked LP token represents 2000 TETU and 50 USDC. Despite the price decrease, the 1 LP token will still generate 250 veTETU at the maximum lock period. Therefore, veTETU remains unaffected, maintaining the same voting power even in the event of price fluctuations.
Regarding tetuBAL power:
veTETU governs tetuBAL within the 20WETH80BAL-tetuBAL LP.
Your veTETU voting power does not solely determine your tetuBAL power. It also depends on the proportion of tetuBAL within the LP compared to the amount outside the LP.
veTETU contract : https://polygonscan.com/token/0x6FB29DD17fa6E27BD112Bc3A2D0b8dae597AeDA4#readProxyContract 20WETH80BAL-tetuBal : https://polygonscan.com/token/0xb797adfb7b268faeaa90cadbfed464c76ee599cd tetuBal: https://polygonscan.com/token/0x7fc9e0aa043787bfad28e29632ada302c790ce33