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Staking VISR for vVISR (fee distributions)
VISR stakers earn 10% of the swap fees that are accrued in the pools Visor manages, distributed in kind as VISR tokens that are purchased from the open market. Previously, these buybacks have been returned as a daily transfer to vault of each individual staker, but as gas fees have risen, this mechanism is no longer economically efficient.
vVISR is the new staking mechanism for VISR. Rather than distribute the VISR buybacks daily, these 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 staker a pro-rata allocation of these tokens.

# Mechanism

When you stake VISR, you will receive some amount of vVISR, that represents your share of the VISR pool that keeps growing as 10% of swap fees is used to buy back VISR. As such, vVISR will always be worth more than VISR because of this additional value accrual from the 10% of swap fees.
The main formulas behind how vVISR works are fairly simple. First, the minting of vVISR follows
$\text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}}$
Then, the share of the underlying VISR a vVISR owner can claim is:
$\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}}$
Let’s provide some simple numerical examples of how vVISR works:

## 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:
$\text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}} = 10 \cdot \frac{100}{100} = 10$
Now we have:
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:
vVISR Outstanding=110
VISR in Pool = 110 + 20 = 130
How much VISR can you claim now?
$\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}} = 130 \cdot \frac{10}{110} = 11.8181818$
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:
$\text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}} = 10 \cdot \frac{110}{130} \approx 8.46$
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:
$\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}} = 140 \cdot \frac{18.46}{118.46} \approx 140 \cdot 15.6\% = 21.82$
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.