Initiate a framework for projects integrating with Vesper to earn revenue share from the fees generated off of TVL contributed.
Vesper works best with friends. With a security-first commitment and set-and-forget yield, Vesper is uniquely poised to play a major role across the space as a “DeFi Yield Engine”. Enabling other protocols, DAOs, wallets, and other entities the opportunity to use Vesper for enhanced product offerings and treasury management options.
This proposal outlines a new revenue share program to attract and incentivize more collaboration across the DeFi industry. The proposed framework offers leading ROI-on-TVL in DeFi. Vesper’s new revenue model offers a consistent and predictable revenue flow from the universal fee allowing Vesper to more easily share a portion of the revenue than ever before.
The current revenue framework distributes fees accrued as follows:
- Vesper DAO: 55%
- vVSP Pool: 40%
- Strategy Developer: 5%
This Framework sends an additional split from the DAO portion back to the partner. To incentivize larger deposits from our partners, the % share attributed to the partner increases when that TVL eclipses benchmark $ value thresholds.
The proposed framework is as follows:
||Revenue Share from treasury to partner
||Client ROI on TVL
Any project that routes funds through Vesper and meets the minimum TVL requirement is eligible for the partner program.
Initially, revenue share will be delivered monthly from the DAO Treasury to the partner.
Engineering requirements are as follows:
- Snapshot mechanism to track each partner’s TVL every time yield is earned.
- On-chain revenue split for partners whose deposits are aggregated on-chain.
- Frontend modifications to register traffic originating from partners.
How many pools so far have been developed by “outside” developers?
85% seems extremely generous. Why such a high payout and such a change from the current payout?
not quite sure i’m following. This proposal introduces a revenue kickback to new projects from the revenue we earn from their TVL routed through vesper. The % breakdowns are what % of DAO attributed revenue that comes from the TVL the partner contributes. There is no global slush fund that gets allocated across all partners, it is specific to each partner and the tvl they contribute
How many pools have been developed outside of the Vesper team or Bloq?
none - and this is separately for other projects that build on top of or around vesper (like our frax - convex integrations)
strategy developer gets 5% of revenue. that is unchanged here
I’m in favor, makes vesper more attractive as a yield source to protocols. How long would it take to implement this?
to confirm, this proposed framework is tiered like taxes? Depositors get the increased revenue split for the TVL bracket amount (e.g. $15-40M deposited earns 35% but if a company deposits $50M, the next $10M would get a 50% split) not that the revenue share go 50% split on whole $50M?
- There is no holdup on engineering. First iteration of partners is fine to do snapshot balance polling on a rolling basis (this is already built for vesper beta airdrop some time ago and used in sushi lp rewards). Ultimately we will automate as much as we can.
EX Convex allows you to stake vaFRAX. We can pay attention to how much TVL is attributed to that smart contract taking deposits and kick the revenue back autonomously. For now we will do OTC transfers once a month or so.
- Not tiered like taxes, if you hit the next tier you get that rate for the whole TVL
It’s a smart way to incentivize protocols to our platform. It benefits them (keeping larger share of returns), the platform (increases TVL into Vesper), and investors (increased TVL increases buybacks and appreciates the VSP token price). Plus the partner program takes from the DAO’s 55% portion and not from the vVSP pool’s 40% portion.
I support this proposal.
The %'s you’re looking at aren’t for external developers creating strategies - they are for partners who would offer Vesper to their user base.
One example would be a hardware wallet provider that easily routes their customers to Vesper (users who may otherwise be unfamiliar with Vesper, or DeFi entirely). That partner would then get a % of the revenue based on the total TVL/yield generated that gets routed to Vesper from their users.
Thanks for the clarification.
It makes sense to me. Has there been feedback from potential partners who would add TVL?
Supportive on initiatives like this that can increase partner adoption and therefore drive TVL up.
Equally supportive of the revenue share to TVL requirements framework alongside it.