[FSVP-7] stVCX Smart Vault

VaultCraft Improvement Proposals Flagship Smart Vault Proposal
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This proposal outlines the introduction of a staked VCX product utilizing VaultCraft’s Smart Vault infrastructure. The primary goal is to enhance the utility of the VCX token by providing staking opportunities that incentivize both current and potential holders to lock their tokens in return for attractive rewards. This initiative aims to drive both buy and hold behaviors, thereby increasing the token’s value stability and overall market demand.

Value Proposition

The staked VCX product will provide multiple benefits for the VCX ecosystem:

  1. Earning Potential for Current Holders: By staking their VCX tokens, existing holders can earn additional VCX through a structured reward system. This not only increases their holdings but also strengthens their commitment to the ecosystem.
  2. Incentivizing Staking for All Users: Both existing and new VCX holders will be encouraged to participate in the staking program due to the attractive Annual Percentage Yields (APYs). This leads to higher participation rates and deeper engagement with the VaultCraft ecosystem.
  3. Reduction in Sell Pressure: By locking VCX tokens in a Smart Vault, the immediate availability of tokens for sale on the open market is reduced. This reduction in liquidity can decrease sell pressure, contributing to a more stable and potentially appreciating token price.
  4. Increased Buy Pressure: The attractive staking rewards are likely to create additional demand for VCX tokens. New buyers may be attracted to acquire VCX specifically to take advantage of the staking opportunities, thereby driving up the token’s price.

Staking Options and Rewards

Users will be given four distinct options to lock and stake their VCX tokens, each with a corresponding reward structure:

  1. 90-Day Lock - 10% APY: A short-term staking option for users seeking moderate returns with a shorter commitment period.
  2. 180-Day Lock - 20% APY: A mid-term option offering a higher yield, rewarding users for a longer commitment.
  3. 270-Day Lock - 30% APY: A long-term option with significant rewards, ideal for users confident in the long-term value of VCX.
  4. 360-Day Lock - 40% APY: The longest staking option with the highest reward, designed for those who are highly committed to the VCX ecosystem and its future growth.

This tiered reward system is designed to cater to different investor preferences, balancing risk and reward across varying commitment periods.

Implementation

The implementation of the staked VCX product will be carried out using VaultCraft’s Smart Vault infrastructure. This involves the deployment of smart contracts that will manage the locking, staking, and distribution of rewards automatically and securely. The Smart Vaults will be audited to ensure the highest level of security and transparency, mitigating any risks associated with staking.

Key steps in the implementation process include:

  1. Smart Contract Development: Building and testing the smart contracts that will handle staking, rewards calculation, and distribution.
  2. User Interface Integration: Integrating the staking options into the VaultCraft platform, ensuring a seamless user experience.
  3. Security Audits: Conducting thorough audits of the smart contracts and overall staking mechanism to safeguard user assets.
  4. Marketing and Communication: Launching a marketing campaign to inform existing and potential users about the staking options and benefits.
  5. Launch and Monitoring: Rolling out the staked VCX product, followed by continuous monitoring and optimization based on user feedback and participation levels.

Conclusion

The introduction of the staked VCX product is a strategic initiative aimed at enhancing the value proposition of the VCX token. By offering attractive staking rewards and leveraging VaultCraft’s Smart Vault infrastructure, this product will foster greater engagement, increase demand for VCX, and contribute to the overall stability and growth of the token’s market value. This initiative is expected to benefit both the VCX community and the broader VaultCraft ecosystem, positioning VCX as a more attractive and stable asset in the crypto market.

2 Likes
2

Great to see new ideas for utilizing VCX! If this is easy to implement, I don’t see any reason not to try it out.

Curious to see how much traction it can gain vs. the existing VCX-LP vault though, given that vault’s higher APR, no lock time, and decreased volatility provided by the 20% weth component of the LP. I suppose stVCX could be viewed as a hedge against the returns of the LP vault going down over time though.

1 Like
3

Looks promising. Let’s see

1 Like