VSP Token: Supply, Issuance, & Rewards

In addition to the yields generated by the pools, users can also earn the native VSP token. Users earn VSP tokens in two ways: participating in Vesper pools or locking VSP. These are described below.

VSP is dripped to users (a little is issued to them every block), and held by the smart contract until the user withdraws from the pool, which triggers the contract to deliver the VSP to their address.

Earning VSP: Vesper Pools

Each Vesper pool is assigned an amount of VSP tokens, and these are distributed to participants proportionate to the size of their stake in the pool. New pools are incentivized after launch.

These VSP tokens are an extra reward on top of the passive real yield the pool generates.

Earning VSP: Locking VSP (Revenue Share)

By locking your VSP, you'll receive esVSP (ERC-721).

After withdrawal and yield fees are collected in the pool (ETH, BTC, USDC, etc.), they go to the treasury, and a portion of this revenue is used for VSP buybacks on the open market. These bought-back VSP tokens are delivered to esVSP participants and can be claimed in the dashboard.

Following a period in which buybacks were paused in favor of treasury emissions, governance has approved a restart of the buyback program. This includes:

• A target of $3,000/month in VSP buybacks, distributed to esVSP holders.

• A plan to gradually increase buybacks toward the previous policy level of up to 40% of total revenue. Note: Actual month-over-month buyback amounts may vary at the discretion of Operations in alignment with the strategic liquidity initiatives.

• Begin reducing monthly VSP emissions from 20,000/mo, with an end target of 0/mo.

To view the current and historical VSP distribution to esVSP holders, please visit Vesper on DeFiLlama for all the details.

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Vesper Launch Details

Supply Dynamics

Vesper launched with a total supply of 10,000,000 VSP:

• 6.5M VSP (65%) went to the community, which included 2.55M for the Incentivized Launch Pools, 1M to incentivized liquidity providers, and 2.95M to the Vesper Reserves.

• 3.5M VSP (35%) was for the Vesper team, advisors, and strategic partners, which was subject to vesting over twelve months.

Token Emissions

• Launch Pools (2,550,000 VSP)

  • 450,000 was allocated to pre-launch Beta participants, and airdropped at launch

  • 2,100,000 was distributed over twelve months, heavily weighted toward the first three months

• Reserves (2,950,000 VSP)

  • Allocated for ecosystem growth and developer/community incentives, as determined by VSP voters

  • A small portion of reserves was later leveraged to further boost rewards on Grow Pools

• Liquidity Providers (1,000,000 VSP)

  • This was used as incentives for LPs on Uniswap, SushiSwap, 1inch, and Loopring (with SushiSwap receiving the majority)

  • Distributed over twelve months, heavily weighted toward the first month (and especially the first weeks)

• Team and Advisors (2,500,000 VSP)

  • 208,333 (1/12) was unlocked at launch

  • 2,291,667 (11/12) was vested with a streaming unlock (constant drip each block) over the following eleven months

• Strategic Partners (1,000,000 VSP)

  • 83,333 (1/12) was unlocked at launch

  • 916,667 (11/12) was vested with a streaming unlock over the following eleven months

Team, Advisor, and Partner tokens were held in a Sablier contract. Recipients could interface with the contract to claim VSP as frequently or as seldom as they preferred. They received 1/n of their total VSP allocation across the n blocks of their vesting period.

Vesper officially launched on February 17, 2021.

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UPDATED 8/18/2024 (VSP Buybacks + Emissions Update)

From 8/15/24 - 8/18/24, VSP/esVSP holders voted to restart VSP buybacks for esVSP lockers and set intentions for future buybacks and emissions policy.

This proposal:

• Reintroduces the buyback mechanism as a supplement to VSP emissions with a fixed $3,000 USD per month buyback target, delivered to esVSP holders.

• Seeks to gradually increase buybacks beyond $3,000/month to a maximum of 40% of total revenue.

• Begins reducing monthly VSP emissions from 20,000 VSP/month, with the end target of 0 VSP/month.