Each Vent Finance ecosystem participant is provided with the possibility to either stake or lock VENT tokens via Vent Finance’s platform. Both staking and lock-ups will generate:
Staking rewards in the form of VENT tokens (according to internal rewards distribution schedule).
Ventibles (VENTi) Fungible, non-transferable tokens connected with the user's wallet address.
The standard speed of Ventibles farming is 100% monthly, meaning that if you stake 1000 VENT tokens for a month, you will receive 1000 VENTi tokens to be spent on VentUp Launchpad allocation tickets.
Apart from staking, users can also lock their tokens for a fixed period of 3, 6, 9, and 12 months.
Using lock-ups means you can’t withdraw locked tokens. This is to encourage stability and consistent growth of the Vent Finance ecosystem.
Staked Tokens Refinement
Token refinement is a new appreciating staked tokens. The longer tokens are staked, the more valuable they get, generating increased staking rewards and more Ventibles.
Every quarter (3 months), staked tokens will be “refined” to the next quality level until reaching the fifth and final level – platinum, with a 2.2x farming speed multiplier attached.
Token Refinement - Technical
DeFi loyalty appreciation systems face one common issue - what if the user stakes a specific amount of tokens (e.g., 100 VENTs), holds it for a year, unlocks loyalty bonus/multipliers, and then adds additional 10,000 VENTs to the staking wallet?
Many DeFi projects using loyalty appreciation methods can't handle “partial stake” and “partial unstake” functions; however, Vent Finance solves this issue with our “token refinement” process. Token refinement allows loyalty bonuses to connect directly with staked tokens, not user accounts.
All staked tokens are stored in a single wallet
Every time a user performs a stake-in transaction, a new “mirror wallet” is created. Mirror VENT tokens (VENTm) are minted for the same amount as the staked tokens and transferred to the mirror wallet.
Smart contracts then track how long specific tokens were kept in the ‘mirror wallet.’ Once they’re staked for a sufficient amount of time, they are “refined.” This means the staking contract will identify them as common, bronze, silver, gold, or platinum, depending on their staking maturity.
Users can have a mix of common, bronze, silver, gold, platinum VENT tokens staked, each with a different farming speed multiplier (respectively: x1, x1.3, x1.6, x2)
Mirror wallet contains user + day signatures. Multiple stake-in transactions from a single day completed by the same user will be recorded on a single mirror wallet. Transactions completed by a single user on different days will be recorded on separate wallets.
If users perform multiple stake-in transactions during a single day, tokens will be sent to a single mirror wallet without creating a new one (to avoid creating too many wallets).
Unstaking VENT Tokens
Users can un-stake tokens at any time (provided they are not subjected to a lock-up period). Partial un-stake is also possible. Tokens will be progressively withdrawn starting from the most negligible value wallet (i.e., shortest maturity). This can be referred to as the “LIFO” rule (Last in, Last out)
Users have 1000 common, 1000 bronze, 1000 silver, and 500 platinum VENT tokens.
They want to unstake 1500 VENT tokens.
The smart contract will withdraw 1000 common and 500 bronze VENT tokens and transfer them back to the user wallet.
Users have 3000 common VENT tokens; however, 500 were staked two months ago, and 2500 yesterday.
They decide to unstake 1000 VENT tokens.
The smart contract will withdraw 1000 VENT tokens staked yesterday and send them back to the user wallet.
500 VENT tokens with two months maturity date will keep accruing their value.
Unstaking funds remove any bonuses resulting from token refinement. Bonus removal is referred to as token “de-refinement.”
Applying the LIFO method is the only fair solution for un-staking VENT tokens. The smart contract will first look for the staked VENT tokens with the lowest maturity (i.e., lowest or none bonuses) and prioritize them for un-staking purposes.
Users can’t un-stake their funds immediately. They have to go through a “cooldown period” first. Meaning, once they decide to un-stake, there is a 7-day waiting period before being asked to re-confirm their decision.
The cooldown process ensures users make rational decisions, free of any psychological pressure related to short-term price spikes or drops. It also minimizes VENT price volatility making it less risky from investors’ perspective.
Users need to re-confirm their un-stake decision within a 24-hour window after the 7-day cooldown process elapses. If re-confirmation isn’t provided, the entire process to reset.
Lock-ups - Instant Refinement
Apart from standard staking, users can use a lookup function, by which they waive the right to withdraw staked tokens for a specific amount of time. The following lock-up periods are available:
Each lock-up adds +1, +2, +3, or +4 to the refinement level of locked VENT tokens. This means if a user locks 1000 common VENT tokens for 12 months, these tokens will instantly be refined into platinum tokens with a farming speed multiplier of 2.2x.
Users can also lock already refined tokens. For example, locking 500 VENT tokens that were already staked for four months (i.e., they are already classified as bronze) for six months will upgrade them to Gold level.
Lock-ups – Instant Ventibles Bonus
A critically important aspect of lock-ups is they instantly provide Ventibles amount that would’ve been generated if locked tokens were staked for the same period.
User locks 1000 VENT tokens for 12 months; they will instantly receive 17400 Ventibles that would have been generated if those 1000 VENT tokens would have been staked for twelve months without a lock-up period. Moreover, locked VENT tokens will instantly gain platinum refinement level, which means from now on, they will generate 2200 Ventibles each month.
1000 VENT tokens are multiplied three times by each multiplier that would’ve been applicable throughout the twelve-month staking period (hence 3x1, 3x1.3, 3x1.6, and 3x1.9). The resulting instant bonus is 17400 Ventibles.
Ventibles have a 6-month life cycle. If Ventibles are stored on a user's account for more than 183 days, they will be burnt. Such an approach helps avoid Ventibles over-saturation and forces stakers to keep their active involvement in the ecosystem's life.
The above process is enabled by storing Ventibles of every user on six different sub-wallets, one for each month. Depending on their maturity, Ventibles are moved from lower-tier wallets to higher ones. Ventibles which are in the 6th wallet and have maturity higher than 183 days are automatically burnt.