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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

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:

â€‹

$\text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}}$

â€‹Then, the **share of the underlying VISR** a vVISR owner can claim is:

â€‹

$\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}}$

â€‹To calculate **your valuation** at any given time:

â€‹

$\text{VISR Accrued} = \text{Your VISR} \cdot \frac{\text{Total VISR in vVISR Vault}}{\text{Total vVISR}}$

â€‹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**:

â€‹

$\text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}} = 10 \cdot \frac{100}{100} = 10$

â€‹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 â‰ˆ 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?

â€‹

$\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}} = 130 \cdot \frac{10}{110} = 11.8181818$

â€‹Therefore you earned (11.82 - 10) â‰ˆ1.82 **VISR**, which is your share of the accrued fees 20 x (10 / 110) â‰ˆ 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**:

â€‹

$\text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}} = 10 \cdot \frac{110}{130} \approx 8.46$

â€‹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:

â€‹

$\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}} = 140 \cdot \frac{18.46}{118.46} \approx 140 \cdot 15.6\% = 21.82$

â€‹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:

- Your
**vVISR**= 10,000

â€‹

$\text{VISR Accrued} = \text{Your VISR} \cdot \frac{\text{Total VISR in vVISR Vault}}{\text{Total vVISR}} = \text{10,123} = \text{10000} \cdot \frac{\text{15,893,179}}{\text{15,700,002}}$

The user has accrued approximately 123 VISR since they began staking.

Supplmental Information

Last modified 21d ago

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