Rewards
Last updated
Last updated
Rewards and incentives are provided to holders and stakers of Vela Exchange tokens via several different methods. Our platform features the highest Real Yield opportunities on stablecoin staking in the industry, and we pride ourselves by revolutionizing this sustainable model. Most platform rewards are issued in USDC.
A dynamic percentage of fees, realized losses, and liquidated collateral will go into the VLP vault, increasing the value of VLP for holders for each chain. We've averaged 17% APR on single sided USDC staking in 2024, and will be boosting this with the adoption of AAVE lending. This integration, scheduled for July 2024, is estimated to boost VLP returns by approximately 7.2%! With a proven track record, we believe that VLP poises the most competitive USDC return on stables in the perpetuals industry.
esVELA may be staked to earn a base of 30% of trading fees* paid in VLP, or can be vested over time to be claimed as $VELA. With more trade volume this percentage scales in order to further reward esVELA staking. Expand the table below to see a detailed breakdown.
A percentage of fees, realized losses, and liquidated collateral will be used to buy back $VELA from supported market places and returned to our traders in the form of Trader Kickbacks.
All traders who complete a minimum of $500,000 monthly trade volume are rewarded at Vela Exchange. It's simple:
The more volume produced on the platform each week, the more that we give back to you
The base kickbacks are 5% of trading fees*, which benefits traders and fulfills our VELA buybacks. These rewards are claimable on the second Monday of each month for qualified traders.
See the detailed chart below for more information on how you can earn even more rewards!
The Vela treasury is dedicated to maintaining a stable supply of VELA through a unique buyback model. These tokens will then be converted to esVELA and used for platform rewards, as described in the above Trader Kickbacks section.
The fees generated from the perpetual exchange are split according to:
10% (avg) from referrals back to users who referred
30-80% for holding VLP in USDC to VLP holders
20-70% remainder sent to Fee Manager Wallet
a. 30-45% for staking esVELA, increases with exchange volume
b. 0%, up to 5% towards Protocol Owned Liquidity (POL), increases with exchange volume
c. 10% in esVELA to Trader Kickbacks (via VELA buybacks; converted to esVELA)
e. Up to 25-65% to Treasury (see FFS)
Vela Exchange is transitioning to an Account Tier model, which will allow traders to advance their reputation and benefits within the exchange. By overcoming challenges and providing value to our ecosystem, ALL traders will have an opportunity to gain the most beneficial Tiers.
Here's how Account Tiers work:
All users on Vela Exchange are rewarded with low fees, equitable trading, and a fun experience. To add to that, we have constructed a tiered system that further benefits the most loyal and determined users of the platform- elevating their account within the social trading experience.
Tier: Level up your account and earn meaningful rewards to supercharge your trading experience at Vela through a tiered system. Complete various objectives in order to advance!
Fee Discount: Pay fewer fees with a larger percentage discount
Referral Fee: Receive a portion of all fees that your referrals (users who use your Referral ID) pay
Fee Rebate: Receive a percentage of all fees that you pay back in the form of USDC, which is automatically added to your trade collateral balance
Your Vela account matters, and, by completing valuable challenges, we reward you with Fee discounts, higher rebates on fees paid, and substantial referral fee shares. Do you have what it takes?
In addition to the above discounts, Vela Exchange offers a referral program. Rebates derived from being referred shall be applied after Trading Fee Discounts have been deducted from any position fees. For example, a user has a 10% Trading Fee Discount from staking VELA, and they were also referred by a standard user (Tier 1). They open a position with $10 fees, and receive the initial $1 discount, and then 2.5% from their rebate, equaling an additional $0.225 deducted.
Fees indicated for esVELA staking and Trader Kickbacks are represented in percentage after Referral and VLP fee splits have occurred.
| Trailing 30d Volume | esVELA Staking Fee Split |
|---|---|
| Trailing 30d Volume | Trader Kickback |
|---|---|
| Tier | Fee Discount | Referral Fee | Fee Rebate |
|---|---|---|---|
Base
30.00%
$100M
30.75%
$200M
31.50%
$300M
32.25%
Scales per +$100M
+0.75%
$2B
45.00%
Base
5%
$100M
5.75%
$200M
6.50%
$300M
7.25%
Scales per +$100M
+0.75%
$2B
20%
0
0%
5%
5%
1
3%
10%
8%
2
10%
15%
10%
3
15%
20%
12%
4
25%
25%
15%
5
35%
30%
15%
Private
35%+
30%+
15%+
