By utilizing veSCA, SCA holders can gain access to the full potential of Scallop’s features, therefore increasing the SCA token’s overall utility.
veSCA also acts as a mechanism to reduce the circulating supply of SCA, thereby boosting its stability and enhancing overall protocol activity. It serves as a critical pillar supporting the long-term sustainability and success of the Scallop ecosystem.
Getting veSCA
Simply lock your SCA tokens to receive veSCA.
The amount of veSCA that you receive is proportional to the SCA and duration locked. Your veSCA amount will decay over time. It will reach zero once the lock duration is over. Your locked SCA will then be fully released.
The amount of veSCA you receive is dependent on how long you lock your SCA.
You can increase your veSCA value by:
- Extending the lock duration
- Increasing the amount of veSCA locked
veSCA Formula:
veSCA = SCA × (Remaining Lock Duration / 4 Years)
Locking Principal
The unlock date only occurs everyday at 12 AM UTC. Therefore, users need to select this unlock date.
One round lasts for one day (24 hours).
Users need to lock at least one full round. So for example, if they start at 12 PM UTC, they can’t unlock it on the next 12 AM UTC (12 hours later) because it’s not a full round yet. In this case, users need to lock it for more than one day to achieve at least one full round.
The minimum round is 1 and the maximum round is 1460. Maximum round is equal to 4 years.
Lock more SCA
If users increase their SCA stake without changing the lock-up period, it will also refresh the amount of their veSCA.
Extending Period
Users can opt for a longer lock-up period. The value of the users’ veSCA will be recalculated. It is not possible to shorten the lock-up period.
Redeem veSCA
Users can take back 100% of SCA after the lock is over.
veSCA Utility
1. veSCA Borrowing Incentive Boost
Users who stake SCA for veSCA will be able to receive up to 4X BOOST for their Borrow Reward APR.
The amount of incentive boost received depends the amount of veSCA held with respect to the user’s borrowed amount.
The more veSCA held, the more a user can borrow to receive the Maximum Incentive Boost!
The incentive boost will be calculated based on percentages of user borrow amount compared to total borrowed amount on Scallop, and veSCA held compared to total veSCA amount.
Learn More: https://medium.com/scallopio/scallop-borrow-incentives-update-8e99fd3bf1a8
2. Scallop Referral Program
Users who stake SCA for veSCA will be able to get a share of the borrow fee generated each time their Referee borrows from Scallop pools. The share of borrow fee is dependent on the amount of veSCA held by the Referrer.
veSCA holders can get up to 40% borrow fee share, and their Referees can get up to 20% borrow fee discount depending on the total veSCA held.
Learn More: https://docs.scallop.io/token/referral
3. Scallop Loyalty Program
The Loyalty Program is designed to reward users when we reach certain revenue milestones. At each milestone, we will conduct a buyback of our tokens, and these tokens will be distributed to users who hold veSCA.
The more veSCA held, the greater share of the rewards for the user.
The amount of SCA reward a holder will receive is calculated based on the following formula:
Reward Distribution Legend:
TveSCA: the sum of veSCA from all participants in snapshot
UveSCA: the veSCA for specific participant in snapshot
Treward: reward pool amount for that day
Ureward: the reward for the participant
In summary, Scallop’s veSCA offers Scallopers the opportunity to maximize their earning potential through various perks.
Stake SCA for veSCA today: https://app.scallop.io/vesca