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 veCVE, 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 veCVE holders.
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 veCVE with an average CVE price of $1 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%) + (28000.004488 CVE x $1) = $3,008,000 in total fees 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 105,000,017.25 CVE tokens are circulating (25% of the total supply). That would mean 52,500,008.625 veCVE exists at this time.
$3,008,000 / 52,500,008.625 CVE = $0.057 per veCVE in rewards that month