VE (Voting Escrow)

• When start?
  • maybe the original ve system from Curve veCRV
• Why fork vePendle?
  • vePendle use Solidity (CRV use python)
  • recently famous project

Fig 1. Pendle App

• What is VE (Voting Escrow)?
  • Lock TOKEN and get veTOKEN, like locking Pendle and receive vePendle or locking Bento to get veBento
  • Use vePendle can:
    • vote Pool → get Pool fee, decide Pendle distribution
  • Use veBento can:
    • Bento —-stake——> veBento can get staking reward (even though NO vote)
    • vote Batch → get Staking Multiplier, get more Bento Box by backend
• How to get veToken?
  • lock (stake) to get veToken
    • Pendle: lock 2 years to get 1x vePendle
    • Bento: lock 2 years to get 2x veBento
  • After locking, you CANNOT withdraw before specified period, (lock from 1 week to 2 years)
    • ex 1: lock 100 Pendle 2 year(s), get 100 vePendle
    • ex 2A: lock 100 Bento 2 year(s), get 200 veBento at start (0)
      • 2x compared to Pendle
    • ex 2B: lock 200 Bento 1 year(s), get 200 veBento at start (0)
    • 2x of your veBento if staked 2 years → staked 1 year get same veBento as deposit Bento
  • both maximum period is 2 years

Fig 2. Example of veBento, staking 200 Bento 1 year and staking 100 Bento 2 years.

• Ex 3:

  A. 130 Bento stake 8 weeks,

  B. 260 Bento stake 4 weeks

  At point 0:

  A. 20 veBento. 130*8/52 = 20

  B. 20 veBento. 260*4/52 = 20

  At point 2 week

  A. 15 veBento. 130*6/52 = 15

  B. 10 veBento. 260*2/52 = 10

  Note: veBento difference each week, even though it’s same at start

• After getting veToken, you can vote:

  • Voting before Thursday:
    • A snapshot of all votes is taken at the start of every epoch on Thursday, 00:00 UTC.
    • Locking end time (withdraw time) only at Thursday

  Why Thursday? 
  Because Timestamp 0  at **Thu.**,01 Jan 1970 00:00:00 GMT
  

  • Vote in first week, weights in place in second week.

    

    Fig 3. voting and weight in place period, ref: https://docs.pendle.finance/ProtocolMechanics/Mechanisms/vePENDLE

  • example, if staked at 7/14 with 1 week

Fig 4. Staking (lock) timeline

• In Pendle, vote Pool which can get more Pendle.
• In Bento, vote Batch which can get more Bento.
• Voting use % (percent), but it will transfer to ve value in contract

Fig 5. Pendle Voting

Fig 6. Bento Voting

• After voting, you can get reward:
  • In Pendle, voting can get pool fee reward. Pool LP get Pendle depend on voting rate.
  • In Bento, voting can affect
    • staking reward. (x0.8 or x1.0) [contract]
    • curator or consumer reward [backend, TBD]
• veTOKEN is a locked (ERC20) token which cannot be transferred
  • veTOKEN has balanceOf() method
  • NO approve() and transfer() method