Governance Vault

As raised by community members in the AIP-24, the new Governance Vault model will have the following features and structure

Governance Vault Structure:

  • Users can stake / withdraw anytime. However, there will be a “cooldown” period after choosing to withdraw before user can claim the token.
  • No time decay, 1 ALPACA locked always = 1xALPACA.
  • Protocol revenue allocation to Governance Vault stakers will remain unchanged.
  • Rewards will be fed weekly to the vault, but will be distributed linearly over the week.

Withdraw locked ALPACA:

  • To withdraw ALPACA, users will need to wait for a cooldown period for 21 days to receive the token.
  • During a cooldown period, those tokens is not considered to be staked and users will not receive staking rewards for those portion of the ALPACA being withdrawn.
  • During a cooldown period, users can choose to cancel withdraw and re-stake the tokens.
💡 Pro tips
  • Users can add ALPACA to your locked position at any time
  • Users don’t need to withdraw the entire staked amount. They can choose to withdraw a partial amount.

🎁Rewards for Participants

By locking up your ALPACA, you will be entitled to receive ALL the following rewards

1. Grazing Range Pool Rewards

Governance vault stakers earn token rewards from all future Grazing Range pools. Moreover, you do not have to choose which pool to stake in. If there are multiple pools running concurrently, you are eligible to receive rewards from all of them! The yields stack up for you. To see the list of Grazing Range pools for governance vault stakers, please visit here.

2. Platform Revenue Sharing

To align closer to market rates, and give more benefits to ALPACA holders, as of Dec 23, 2021, we are adjusting the leveraged yield farming performance fee to 9% (on yield farming rewards portion only). Of this, 5% will go to Protocol APR for the ALPACA stakers in the governance vault (as an ALPACA buyback).
This is a new revenue stream for ALPACA stakers that brings in an additional ~2.6Mn/year or ~$50k/week (based on metrics at time of launch) as rewards to them, adding a consistent income channel on top of the existing Protocol APR, Grazing Range rewards, and long-term deflationary benefits through buyback & burn that ALPACA holders enjoy.

3. Governance Voting Power

More xALPACA = more votes for governance proposals.