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VISR Staking
An overview of the VISR token and staking features

The VISR Token

The VISR token offers an alternative financial instrument instead of directly providing liquidity while still allowing the user to be exposed to and profit off of liquidity pools.
Instead of providing liquidity directly into a Visor liquidity pool and accruing fees from the selected pools, VISR stakers earn 10% of the fees that are accrued in all of the pools Visor manages. This is an excellent way to diversify your holdings and reduce risk, particularly if you are a novice at using liquidity pools.
VISR staking fees are distributed as VISR tokens that are purchased from the open market.

vVISR and VISR

vVISR is the new staking token and mechanism for VISR. Rather than distribute the VISR buybacks daily, these buybacks are accumulated in a pool, of which stakers own a percentage share according to their staked VISR. As fees are accrued upon rebalances, the 10% share that goes to VISR stakers is deposited in the pool, giving each staking wallet a pro-rata allocation of these tokens.
As such, vVISR will always be worth more than VISR because of this additional value accrual from the 10% of swap fees. A user's vVISR quantity will not increase, the value of vVISR relative to VISR will.
A user cannot currently purchase vVISR on the open market.
The main formulas behind how vVISR works are fairly simple.
First, the minting of vVISR follows:
vVISR Minted=VISR Deposit vVISR OutstandingVISR in Pool\text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}}
Then, the share of the underlying VISR a vVISR owner can claim is:
Claimed VISR=VISR in PoolvVISR RedeemedvVISR Outstanding\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}}
To calculate your valuation at any given time:
VISR Accrued=Your VISRTotal VISR in vVISR VaultTotal vVISR\text{VISR Accrued} = \text{Your VISR} \cdot \frac{\text{Total VISR in vVISR Vault}}{\text{Total vVISR}}

Examples

Example 1: Early Minting of vVISR

Suppose you are amongst the earliest stakers before any fees were accrued.
  • vVISR Outstanding = 100
  • VISR in Pool = 100
  • You deposit 10 VISR:
vVISR Minted=VISR Deposit vVISR OutstandingVISR in Pool=10100100=10\text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}} = 10 \cdot \frac{100}{100} = 10
Now we have:
  • Your vVISR = 10
  • vVISR Outstanding = 100 + 10 = 110
  • VISR in Pool = 100 +10 = 110
You get back 10 vVISR, which now represents 10/110 ≈ 9% of the pool. Given the pool has 110 VISR, you are the owner of 9% x 110 = 10 VISR, the same amount that you added to the pool.

Example 2: Swap Fee Accrual in the Pool

Suppose now that today had tons of volume, and the 10% cut of fees added to the pool is equivalent to 20 VISR, so that now:
  • Your vVISR=10
  • vVISR Outstanding=110
  • VISR in Pool = 110 + 20 = 130
How much VISR can you claim now?
Claimed VISR=VISR in PoolvVISR RedeemedvVISR Outstanding=13010110=11.8181818\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}} = 130 \cdot \frac{10}{110} = 11.8181818
Therefore you earned (11.82 - 10) ≈1.82 VISR, which is your share of the accrued fees 20 x (10 / 110) ≈ 1.82. You can burn any proportion of your vVISR that you wish, which reduces one-for-one the amount of vVISR outstanding.

Example 3: Further minting of vVISR

How much vVISR will you get now if you stake more VISR? Suppose you want to stake another 10 VISR:
vVISR Minted=VISR Deposit vVISR OutstandingVISR in Pool=101101308.46\text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}} = 10 \cdot \frac{110}{130} \approx 8.46
Given that the pool is bigger, you get fewer vVISR units than the VISR units than you put in, but these vVISR still represent at least as much VISR as you started with, and a growing amount as swap fees are added to the pool.
Now we have:
  • Your vVISR = 10 + 8.46 = 18.46 vVISR
  • vVISR Outstanding = 110 + 8.46 = 118.46
  • VISR in Pool = 130 + 10 = 140 VISR in Pool
Therefore you can claim:
Claimed VISR=VISR in PoolvVISR RedeemedvVISR Outstanding=14018.46118.4614015.6%=21.82\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}} = 140 \cdot \frac{18.46}{118.46} \approx 140 \cdot 15.6\% = 21.82
Which is equal to the amount of VISR you have staked (10 + 10 = 20 VISR staked), plus the fees (1.82 VISR) that have been accrued while you were staking.

Example 4: How much VISR have I accrued from staking?

Say you want to calculate how many VISR you have earned from staking
Now we have:
VISR Accrued=Your VISRTotal VISR in vVISR VaultTotal vVISR=10,123=1000015,893,17915,700,002\text{VISR Accrued} = \text{Your VISR} \cdot \frac{\text{Total VISR in vVISR Vault}}{\text{Total vVISR}} = \text{10,123} = \text{10000} \cdot \frac{\text{15,893,179}}{\text{15,700,002}}
The user has accrued approximately 123 VISR since they began staking.

Supplmental Information

Last modified 21d ago