Trader Joe

Proposed in discord by og_yoloswag69, temperature check: 46 votes in favor, 1 against.

Summary:

This proposal would add VTX as a base asset and open a Liquidity Book pool.

High Level:

Protocol Overview

• Vector started as the “Convex of Avalanche” by permanently staking PTP and JOE to accumulate respective “-ve” tokens and in turn offer boosted yields to liquidity providers.
• The Protocol has accumulated more than 1.1 billion veJOE and 835 million vePTP

Intangibles

• Vector is integral to liquidity provisioning on Platypus
• Inextricably linked to the success of Avalanche DeFi
• The Protocol and VTX token holders have a vested interest in the long-term success in Trader Joe and will be an important voice as governance evolves.

Token Overview

• VTX is Vector’s governance token. When locked as LVTX, it earns both protocol revenues and bribe income. Currently, the token earns 24.4 percent of real yield from performance fees and bribe income.
• Under the 1 JOE = 1 vote model, VTX controls voting power for over 14.1 million JOE tokens. Therefore, 10,000 locked VTX has voting power equivalent to 5,000 JOE, 400,000 veJOE, and 300,000 vePTP

Considerations

Market

• 26.7 million of the total 35.8 million VTX (approximately 75 percent) are locked
• Of the remaining tokens in circulation, over 3.3 million are in the VTX-AVAX pool
• 24h utilization generally does not exceed 10 percent. Very capital inefficient.
• Volatility does not necessarily move in sync with markets as there is a four-week cool-off period before LVTX is fully unlocked and tradable.

Shortcomings alleviated by a VTX-AVAX V2 pair

• Deep liquidity despite low volumes and circulation
• High slippage despite low volatility
• Volatility that does not correspond with market conditions

Specifications:

Asset Confirmation: Market: Avalanche Token Name: VTX Associated Protocol: Vector Finance Token Contract ID: 0x5817D4F0b62A59b17f75207DA1848C2cE75e7AF4 Joe LP Token Contract ID: 0x9ef0c12b787f90f59cbbe0b611b82d30cab92929 Links Snowtrace (VTX Token): https://snowtrace.io/token/0x5817D4F0b62A59b17f75207DA1848C2cE75e7AF4 Snowtrace (VTX-AVAX JLP): https://snowtrace.io/token/0x9ef0c12b787f90f59cbbe0b611b82d30cab92929 Coinmarketcap: https://coinmarketcap.com/currencies/vector-finance/ Joe LP Token Analytics: https://analytics.traderjoexyz.com/pairs/0x9ef0c12b787f90f59cbbe0b611b82d30cab92929 Protocol Website: https://vectorfinance.io/ Token Distribution: https://docs.vectorfinance.io/getting-started/tokenomics/token-distribution Emissions Schedule: https://docs.vectorfinance.io/getting-started/tokenomics/token-distribution/liquidity-mining-schedule