🥜Token Utility

Token Utility

$NUTS is the governance token of the Thetanuts Finance ecosystem, and will be used to achieve the long-term objectives of the protocol — including decentralization, governance, and incentives.

Holders will enjoy the following token utilities:

• veTokenomics & Gauge Voting: $NUTS can be staked to become $veNUTS at a 1:1 ratio — with holders of $veNUTS being able to participate in gauge voting for every component within the Thetanuts Finance ecosystem.

• Governance & Decentralization: Holders of $veNUTS will be able to participate in governing Thetanuts Finance toward its long-term objectives.

• Value Accrual: Fees earned by Thetanuts Finance will be accrued to the Treasury, in which the Thetanuts Finance DAO will have control over once governance is live.

• Boosted Emissions: Holders can further lock their $veNUTS to receive up to 1.5x Boosted Emissions on their liquidity incentives on Thetanuts Finance.

$NUTS can be staked to become $veNUTS at a 1:1 ratio, which can be linearly vested to become liquid $NUTS subject to a 90-day vesting period. $veNUTS holders will enjoy the features of being a member of the Thetanuts Finance community.

$veNUTS can be locked up to 12 months for Boosted Emissions for providing liquidity on Thetanuts Finance, during which $veNUTS cannot be vested.

Liquidity Incentives

$NUTS will be used to achieve the long-term objectives of the protocol — including incentivizing liquidity on the core components of Thetanuts Finance v3. To ensure that incentives are directed toward long-term members of the community, Thetanuts Finance referenced and received inspiration from Curve’s pioneering vote-escrow model.

Liquidity incentives on Thetanuts Finance will be distributed in $veNUTS at the end of every epoch on Ethereum Mainnet, with $veNUTS becoming immediately productive after being claimed. To qualify for $veNUTS incentives, a user must also maintain a threshold in dLP relative to their TVL on Thetanuts Finance v3 throughout the epoch.

Holders of $veNUTS can receive up to 1.5x Boosted Emissions on their liquidity incentives on Thetanuts Finance when they lock their $veNUTS. This Boost Value can be calculated below. Users can choose to lock $veNUTS beyond their $veNUTS Lockable Threshold, but the user’s Boost Value will be still based on the $veNUTS Lockable Threshold.

Boost Value (capped at 1.5x Boost) = User Locked $veNUTS / $veNUTS Lockable Threshold * time weight * dLP weight; where $veNUTS Lockable Threshold = User TVL on Thetanuts Finance / Total TVL on Thetanuts Finance * Circulating Locked $veNUTS

Inspired by Curve, liquidity incentives are expected to be distributed over an extended period of time — with 99% of liquidity incentives being distributed after >65 years. Specifically, emissions are reduced by a factor of 2 ^ (1 / 512) each week similar to Curve.

Dynamic Liquidity Provisioning

Liquidity pools on AMMs are essential for on-chain liquidity, enabling users to trade the native tokens of protocols (inc. $NUTS) in a permissionless manner. Users can provide liquidity to $NUTS pools on Uniswap v2 — thereby improving liquidity and depth for on-chain trading of $NUTS, while being eligible for fees on Uniswap v2 and $veNUTS emissions. Users can add $ETH or $NUTS on Ethereum Mainnet — which is then deposited into Uniswap v2’s $NUTS/$ETH liquidity pool in a 50/50 composition.