spVARA

La Poursuite de l’gouvernance

$spVARA is a Liquid Market product for Equilibre. A liquid wrapper for $veVARA, it allows for blackholing governance on Equilibre with an open exit position at all times.

Equilibre Finance is a ve(3,3) DEX on Kava. Users earn governance tokens as yield that, once locked, give them access to trade fees & voting where token emissions go.

To unlock $VARA's full governance potential, liquidity providers must lock their governance tokens up to 4 years. Dyson mitigates this process by taking the responsibility of holding locked tokens in exchange for an exit position that is yield-bearing.

How does $spVARA work?

$spVARA is a receipt token that is minted every time somebody supplies Liquid Market with $VARA tokens. It acts as a representation of veVARA that is locked in the minting process.

What if I want to exit my position?

If you want to exit your $spVARA position, just exit using the $spVARA / $VARA liquidity pool on Equilibre.

How does $spVARA keep its peg?

Due to the nature of $spVARA, 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 spVARA/VARA vault on Dyson to earn rewards. This is to ensure deep liquidity at all times for a stable peg. If spVARA is off-peg, the protocol uses yields & deposits to arbitrage the peg back to a 1:1 ratio.

Liquidity sink & governance blackhole

Because using $spVARA requires the vault to perpetually lock $VARA, Dyson acts as a liquidity sink for $VARA holders, and a governance blackhole to Equilibre. As Dyson's veNFT grows, so does its potential for yielding rewards for $spVARA.