You’ve got your VRSW — now what?

Well, there are several things you can do.

1. Stake your VRSW tokens to receive veVRSW and participate in all aspects of the protocol governance via VirtuSwapDAO.

2. Staking VRSW entitles you to enhanced yield on your liquidity provisions across VirtuSwap.

3. In addition to staking, you can lock your VRSW for the time period of your choice to receive a further boost to your VRSW staking yield.

4. The most interesting, your staked VRSW will work overtime if in addition to staking VRSW you will provide liquidity to incentivized pools on VirtuSwap — as staking VRSW will result in disproportionately high share of VRSW incentives allocated to liquidity pools.

Let us go through a simple numerical example that will make all of this clear.

Assume you have received 2,000 VRSW tokens in our INITIUM airdrop. Assume also that the price of VRSW token is currently $0.03.

1. If you sell your VRSW tokens, you’ll receive 2,000*$0.03=$60 (disregarding trading costs, such as pool fees, price impact, and gas). While tempting and resulting in an instantaneous cash flow, this may not be the best use of your VRSW, as we argue below.
2. Assume instead that you stake your VRSW. Part of VRSW emission to community goes directly to VRSW stakers.

a) To make things concrete, assume that 20% of total VRSW emission goes to VRSW stakers.

b) In the first month, this will amount to 20% of over 9M VRSW tokens, or over 1,800,000 VRSW.

c) Let’s assume that the overall amount of VRSW staked is 2M (two thirds of the amount of VRSW distributed in the INITIUM airdrop). Thus, you’ll be entitled to 2,000/2M=0.1% of total VRSW incentives for staking, or 1,800 VRSW in the first month.

d) This is 90% monthly yield or over 1,000% APR!

3. Assume that you also lock your VRSW for the duration of one month. This enhances your share of the emission to VRSW stakers. In particular, your monthly yield increases to 115%, or almost 1,400% APR.

4. Finally, and most exciting, assume that you also provide liquidity to a pool on VirtuSwap.

a) Assume that you have contributed $1,000 TVL out of $500,000 pool (i.e. you have a 0.2% liquidity position in the pool).

b) Assume that this pool is receiving 10% of overall VRSW monthly emission, or 900,000 VRSW in the first month.

c) As a regular LP (not staking VRSW), you would be entitled to 900,000*0.2%=1,800 VRSW (equivalent to $54), resulting in 5.4% monthly yield or slightly over 60% APR on liquidity provision.

d) If you also stake all your 2,000 VRSW, your share of pool reward increases to around 2,600 VRSW, i.e. you receive extra $24 or 2.4 extra monthly yield on liquidity provision, raising your overall LP APR to close to 100%.

e) If you provide liquidity to more pools (which you should), VRSW staking will increase APRs in all pools to which you provide liquidity.

Bottom line is staking VRSW will be incentivized by VRSW emissions. Providing liquidity to VirtuSwap pools in addition to staking VRSW will result in outsized yields.

Note that among the interesting options (2–4 above, i.e. staking VRSW, locking VRSW, and VRSW contributing to LP provision returns), we will start with item 2 (staking VRSW). Locking VRSW and enhancing LP provision returns are coming soon!