Curvance
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Rewards
Benefits you receive for holding vlCVE
Curvance's entire tokenomic structure is designed to give the most benefit to users who vote-lock their CVE. While holding vlCVE, you will receive platform fee distributions, a portion of lending market profits, and the ability to vote for various things on other protocols, thanks to whatever governance tokens live in our treasury. As a bonus, we've allocated 8% of CVE's total supply over eight years to be distributed to vlCVE holders, ensuring that you will always receive something for locking your CVE.
As an example of how rewards could be generated for any given month, let's create a scenario: Curvance has $1,000,000,000 in TVL with $300,000,000 of active loans issued, and 50% of CVE has been locked for vlCVE with an average CVE price of $250 per token.
Assuming the average platform fee on TVL's APR is 3% (0.25% monthly) and the average loan profit distributed is 2% (0.16% monthly) while adding in our CVE boost, totaling 0.08% for the month, we can find our sum.
($1,000,000,000 x 0.25%) + ($300,000,000 x 0.16%) + (256 CVE x $250) = $3,044,000 in total rewards for the month
In this example, 50% of all circulating CVE are vote-locked and eligible to receive these rewards. To keep the math simple, let's say that 1,000,000 CVE tokens are circulating (25% of the total supply). That would mean 500,000 vlCVE exist at this time.
$3,044,000 / 500,000 CVE = $6.08 per CVE in rewards that month
At $250 per CVE, that would indicate a current 2.72% APR monthly for vlCVE holders, and if the same conditions held the entire year, you would earn 32.64% APR yearly.
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