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abmis
@abmis
Great stablecoin yield at the moment on @velodrome Brought to you by The DeFi Collective and Gravita.
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roba
@adroba
Legit question, how does velodrome sustain this without velo? don’t get me wrong, I’m appreciate getting fees back in the original assets, but Velodrome and many others feel like they offer inflated APRs
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abmis
@abmis
I don't really understand your question, veVELO holders sell VELO emissions to protocols trying to grow their tokens' liquidity. The whole protocol is dependent on continuous VELO emissions. @wineman.eth wrote a great article on this https://mirror.xyz/wineman.eth/pSKr-mIsEwZhYad2xdRQNd6fpseGXB5LzWa9l0U5VME
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roba
@adroba
So if I understand correctly… 1: Provide liquidity 2: Lock earned VELO for veVELO 3: Take veVELO and vote for how much VELO specific pools get moving forward (presumably the ones you’ve contributed liquidity to) 4: Receive outsized rewards as a result? #4 right? Is this just a mechanism to prevent VELO selling?
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abmis
@abmis
That's the strategy that most teams with tokens do, but they don't care much about voting rewards. They just want more VELO going to their pools in the hopes more liquidity gets added. I personally farm & lock, then vote for the highest voting APR. The relay is also an option if I want to auto-compound my position.
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roba
@adroba
yeah, to be clear I’m an LP provider on velodrome. I’m just curious to see over time if a dapp coin can truly sustain participation after acquisition in the long run.
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