spSATIN
Satin's liquidity blackhole
Last updated
Satin's liquidity blackhole
Last updated
$spSATIN is a liquid wrapper of $veSATIN, the vote-escrow token of $SATIN. Due to $veSATIN's LP lock mechanic, $spSATIN diverges from the conventional sp model. By pegging $spSATIN to veSATIN's LP token, $spSATIN turns into Satin's only de-facto metapool.
Satin Exchange is a ve(3,3) DEX on Polygon that shares many traits of Solidly's conventional model. Liquidity providers earn $SATIN, which when locked for $veSATIN, unlocks access to bribes & swap fees on pools.
To unlock $SATIN's full governance potential, liquidity providers must lock their governance tokens up to 2 years. Dyson mitigates this process by taking the responsibility of holding locked tokens in exchange for an exit position that is yield-bearing.
If you want to exit your $spSATIN position, just exit using the $spSATIN / CASH - SATIN vAMM liquidity pool on Satin.
Due to the nature of $spSATIN, it is highly incentivized by Dyson using its veNFT gathered from the liquid wrapper. Users who also want to make the most out of their minted tokens must deposit into the spSATIN/SATIN vault on Dyson to earn rewards. This is to ensure deep liquidity at all times for a stable peg. If spSATIN is off-peg, the protocol uses yields & deposits to arbitrage the peg back to a 1:1 ratio. That is why the best use-case of LM is to farm rewards on Dyson.
Because using $spSATIN requires the vault to perpetually lock $SATIN's liquidity, Dyson acts as a liquidity sink for $SATIN holders, and a governance blackhole to Satin. As Dyson's veNFT grows, so does its potential for yielding rewards for $spSATIN. On a protocol level, Satin benefits from deepening liquidity indefinitely, because of Dyson's $spSATIN / CASH - SATIN vAMM LP.
