spSLIZ
The liquidity sink of SolidLizard
spSLIZ is a liquid wrapper of veSLIZ, the governance token of SolidLizard. SolidLizard is a ve(3,3) DEX on Arbitrum. To maximize yield farming on SolidLizard, users must own an amount of veSLIZ to boost their APR up to 2.5x. Unlocking this boost's full potential means users must commit to locking their tokens for 4 years. Dyson offers an alternative.
How does spSLIZ work?
Users who wish to earn on their SLIZ without having to lock can mint spSLIZ via Dyson or buy it off SolidLizard. spSLIZ is not yield-bearing unless it is deposited in the Dyson spSLIZ / SLIZ vault.
Dyson then takes the responsibility of locking $SLIZ & uses the veNFT to incentivize the spSLIZ/SLIZ liquidity pool.
If users wish to maximize their yields, they can deposit with Dyson for a 2.5x APR boost. When the peg is off, Dyson takes the yield from the vault & buys $spSLIZ at a discount to boost the peg to a 1:1 ratio. This also applies to depositing into Dyson. When users want to mint $spSLIZ on Dyson, they will be routed to buy $spSLIZ at a discount instead.
Boosted yields on SolidLizard
As well as offering a liquid wrapper for SolidLizard, Dyson offers boosted yields from SolidLizard.
Part of the harvest fees from the vaults are used to boost emissions on Dyson's vaults.
Because of the APR boost from perpetual locking, Dyson becomes the go-to spot for farming on SolidLizard. The more the governance blackhole grows, the more attractive Dyson's vaults become.
Concentrated Governance
Because harvest fees are partially used to lock more veNFTs, $spSLIZ has more veNFTs backing it. This gives $spSLIZ a better foundation for both a stable peg & more yield.
$spSLIZ is a liquidity sink that promotes scarcity for $SLIZ, taking $SLIZ off the market.
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