Welcome to DeFit, with Trainer Joe
This is Session 6 of a 6 part series to help you bulk out your DeFit knowledge and get some serious kudos amongst the community.
As the final installment of the DeFit series, this is your last chance to bulk out your DeFit knowledge and get some serious kudos amongst the community.
Those who train with Joe will be rewarded with an exclusive Discord badge of honor: ‘DeFit Champion’
Train now and get your DeFit badge of honor
🏃♂️Sets for the session
- How veJOE boosts work
Vote escrowed tokens (such as veJOE) have recently become a popular adoption into DeFi tokenomic models. The driving factor is a combination of yielding additional rewards as well as being able to secure more voting rights. Curve pioneered the basic foundations for the vote-escrow model, giving DeFi users more power in future governance decisions.
What is veJOE?
Trader Joe’s model has some key differences from the original inception of ‘ve’ tokenomics:
- veJOE stands for « vesting escrowed JOE »
- There is no lock period required in order to accumulate veJOE tokens.
By staking JOE tokens on Trader Joe platform, users receive veJOE (vesting escrowed JOE) over time and benefit from selected boosted farms on which JOE rewards are significantly increased. In the future veJOE holders will be able to vote on which farm they want JOE emission to focus on. Therefore, veJOE tokens won’t just mean « vested escrowed JOE » but also « voted escrowed JOE », as initially defined by Curve.
🏋️♂️ Rep 1: veJOE is another JOE staking option on TraderJoe platform which lets you benefit from selected boost farms: Stake JOE into veJOE to accrue veJOE over time
The longer you stake your $JOE tokens, the more veJOE you accumulate, and the more JOE rewards you will earn through boosted farms. When eventually implemented, the more veJOE you hold, the more voting power you can use and affect future decisions regarding JOE emissions.
🏋️♂️ Rep2: The more veJOE you accrue the higher your JOE Yield in selected Farms will likely be
🏋️♂️ Rep3: veJOE will also provide Voting Power for future platform Governance
Speeding up your veJOE Accrual
You can increase your veJOE accrual by 2x for 15 days. To do this you will need to top up at least 5% of your staked JOE in a single transaction every 15 days. The 2x boost is the maximum boost factor that you can unlock.
Remember, VeJOE is a non-transferable token and you will lose all your earned veJOE once you unstake a single JOE from veJOE.
🏋️♂️ Rep4: You can Speed up your veJOE by engaging a Speed Up accrual rate
🏋️♂️ Rep5: If you unstake $JOE, you will lose all accrued veJOE and all benefits
What is a DeFi Bribe?
The VeJOE wars are raging and many protocols are scrambling to acquire as much veJOE votes as possible by bribing veJOE Stakers: i.e offering their own native token in exchange for their veJOE voting power. When gauges are implemented veJOE stakers will be able to vote to allocate more JOE rewards to their farm.
The primary use case of veJOE is determining how many rewards are given to liquidity providers on different farms. As demonstrated by the ‘VeJOE Wars’, it is in the best interest for protocols to acquire as much veJOE as possible to help attract liquidity providers.
Protocols short on initial capital or $JOE may seek to ‘bribe’ veJOE stakers by offering them additional tokens in exchange for their veJOE voting power. When implemented, veJOE voting will give protocols the opportunity to allocate more JOE rewards to their farm to help incentivize liquidity providers.
2. How do veJOE boosts work?
veJOE boosts are only applied to select ‘Boost’ Farms
You can find veJOE farms by selecting the ‘Boost’ filter on the Farm page. The list of veJOE farms will be updated periodically.
What is JOE APR and BOOST APR?
JOE APR and Boost APR rewards are paid out in JOE tokens. JOE APR is the APR that you will receive regardless of whether you have any veJOE staked.
BOOST APR is directly correlated with the veJOE you have earned. The more veJOE you have, the larger the boost.
🏋️♂️ Rep6: Selected boost farms can be seen by clicking on the « boost button » in « farm »
veJOE boosting strategy
veJOE farm boosts are activated once veJOE is claimed. All boost farms will receive BOOST APR immediately, however, there are a few factors that affect how BOOST APR is rewarded.
- JOE Reward token that is allocated
- Farm TVL
- Your share of LP tokens that are actually staked
veJOE boost APR estimation
Working out the amount of JOE you should stake in order to maximize ROI is made complicated by the dynamic variables that affect how APR is determined.
This is best done via a veJOE calculator which can help you to plan your veJOE strategy! veJOE boost calculator: Link here
If you want to understand more about this calculation, you can refer to the doc section
Let’s now have a look at the below case study which demonstrates the calculation scenario on how veJOE is affecting your boost APR:
- LP Pair: JOE / AVAX
- LP token amount: 1
- LP value in $ : 22
- veJOE amount: 100
If there is no veJOE in your wallet, you only receive a base farm APR of 20.08%. However, if you have 100 veJOE, you will receive 46.34% boost APR which is almost 2.5x more JOE you will be rewarded.
- LP Pair: JOE / AVAX
- LP token amount: 1
- LP value in $ : 22
- veJOE amount: 500
As per scenario 1, you will receive the same JOE APR. However, in scenario 2, the addition of 400 veJOE will boost your APR by 103.5%, almost 2x from scenario 1.
🏋️♂️ Rep7: The higher boost factor for the farm, the more benefits for the veJOE holder
The calculation above is just for reference and was calculated during the production of this session. For the latest APR calculation, please use a current veJOE calculator.
veJOE is a great way for long-term JOE holders to benefit from boosted APR and get rewarded with more JOE! The higher the APR, the greater the projected profits. Remember that APR fluctuates and that you will need to monitor your accumulated veJOE in order to keep getting a boosted APR.
Congratulations — Session Complete 🥇
Now it’s time to flex your muscles and lock in those gains.
Take on the challenge and get DeFit.
Complete the Quiz to build your progress toward the DeFit badge of honor.
🧠 Good luck! : Quiz Link ← — — — — — — 👈
If you need to catch up on previous Sessions
- Session 1: Lending Part 1
- Session 2: Lending Part 2
- Session 3: Yield Farming
- Session 4: Impermanent Loss
- Session 5: Rocket Joe
About Trader Joe
Trader Joe is a one-stop-shop decentralized trading platform native to the Avalanche blockchain. Trader Joe builds fast, securely and aims to serve the community at the frontier of DeFi. Maximize your yield generating activities under one fully integrated roof, providing you with a unique, innovative, and highly accessible DeFi experience.