Spice Whitepaper
  • 🏰Welcome to Spice
    • The Protocol
    • Decentralising $30T Global Supply Chains by Tokenizing Trade Finance
    • Challenges of Present TradFi and DeFi
    • Hybrid Yield Model
  • 🎯Core Components
    • Our Real World Trading Arm
    • Hybrid Vault System
    • Vault Strategies
  • Real Yield From Real Business Activity
    • πŸ—ΊοΈThe RWA Strategies
    • 🌢️Commodities
    • 🏝️Real Estate
    • πŸ“ˆStocks
    • πŸ’΅Bonds
    • β˜‘οΈThe Appeal of Emerging Markets
  • Our Methodology
    • Pooling and Token Minting
    • Vault Locking and Fiat Allocation
    • Preset Conditions for Yield Stability
    • Yield Distribution On-Chain
  • πŸͺ™Tokenomics
    • veSPICE
    • Transforming Traditional Fund Management
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On this page
  • veSPICE holder incentives
  • Acquiring veSPICE
  • Incentive voting
  • Fees and Rewards
  • Pool boosting
  1. Tokenomics

veSPICE

Spice Governance relies on vote-escrowSpice (veSPICE) which enables protocol decentralization, giving users a degree of choice for the future. Holding veSPICE give user access to a series of features increasing the utility of the token.

veSPICE is a mechanism that reduces circulating supply, which interns increase the token's stability. veSPICE plays a crucial role in the success of the protocol and the whole spice ecosystem.

veSPICE holder incentives

  1. Vote to direct Spice incentives into a targeted pool

  2. Base APY from protocol activity (veSPICE holder receives a small percentage from holding)

  3. Boost LP rewards (up to 200%)

  4. Voting participation incentives

Acquiring veSPICE

To attain veSPICE, the user needs to stake SPICE into a vault in return for veSPICE. User lock SPICE token for 1 Month, 3 Month, 6 Month, 12 Month, 24 Month (max of 2 years).

  • The longer the lock the higher the voting power.

  • Only one wallet is associated with a single veSPICE expiry date.

  • veSPICE voting power will decay over time until it reaches zero. Spice token will be unlocked.

  • Voting power can be extended by extending the duration or increasing you stacked amount.

Incentive voting

veSPICE holder can vote to direct Spice incentives to different pools that align with their operations. Incentivization of liquidity.

The higher the veSpice value the more incentives you are entitled to. To claim an incentive the user must hold veSPICE while depositing into the targeted pool.

1-week vote, 1-week distribution, and claims.

Fees and Rewards

3% fee from all yield generated. 100% of that fee goes to veSPICE holders. Subjected to change in the future.

Unclaimed yield will be converted to Spice and distributed to the Spice staking pool.

Pool boosting

To acquire the boosted reward, users must hold veSPICE while depositing liquidity into a pool. The boost can go up to 200%, proportionally received based on the portion of the pool. Boost = % of veSPICE supply and % of LP in pool

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Last updated 5 months ago

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