# Rewards

## Types of Rewards

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. 

### VLP Value

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](https://app.aave.com/). 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 <a href="#esvela" id="esvela"></a>

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.

<details>

<summary>esVELA Staking Rewards </summary>

Vela Exchange rewards traders and token holders by increasing their rewards as the platform accrues more volume. Here is a schedule of how your rewards will grow with trailing 30d trade volume:

Starting at a base 30% fee split, for each increase of $100M volume tier the esVELA staking rewards grow by a rate of 0.75%, capping at 45%! \
\
**For example:**\
\
When the trailing 30d trade volume is $600M (that's only $20M volume per day) the esVELA staking rewards are increased to 34.5%.

</details>

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](#trader-kickbacks).&#x20;

### [Trader Kickbacks](#trader-kickbacks)

All traders who complete a minimum of $500,000 monthly trade volume are rewarded at Vela Exchange. It's simple:

<mark style="color:blue;">**The more volume produced on the platform each week, the more that we give back to you**</mark>

<figure><img src="https://1356357463-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FrN46BgyysObtNusDYaGn%2Fuploads%2FAReAabaRUwzFjoG5jyN9%2Fimage.png?alt=media&#x26;token=f32c7cf4-de41-45c2-8253-dd2d06c45d1e" alt=""><figcaption></figcaption></figure>

The base kickbacks are [5% of trading fees\*](#trader-kickbacks-schedule), 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!

## Platform Rewards Flow Process

<figure><img src="https://1356357463-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FrN46BgyysObtNusDYaGn%2Fuploads%2FfHIzlGXbYIOXwz4osZ5V%2Fimage.png?alt=media&#x26;token=ff06e7eb-ef37-460f-8e79-9abf5ce67705" alt=""><figcaption><p>A visual representation of the dynamic fee split within our fee and token economy</p></figcaption></figure>

## VELA Buyback Model

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](#trader-kickbacks) section.&#x20;

## Fee Splits for Perpetual Exchange

The fees generated from the perpetual exchange are split according to:

1. 10% (avg) from referrals back to users who referred
2. 30-80% for holding VLP in USDC to VLP holders
3. 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](https://docs.vela.exchange/vela-knowledge-base/exchange/usdvlp#floating-fee-split-ffs))

#### Schedule of Dynamic rewards to our users

{% tabs %}
{% tab title="esVELA Rewards Schedule" %}

| Trailing 30d Volume | esVELA Staking Fee Split |
| ------------------- | ------------------------ |
| Base                | 30.00%                   |
| $100M               | 30.75%                   |
| $200M               | 31.50%                   |
| $300M               | 32.25%                   |
| Scales per +$100M   | +0.75%                   |
| $2B                 | 45.00%                   |
| {% endtab %}        |                          |

{% tab title="Trader Kickbacks Schedule" %}

| Trailing 30d Volume | Trader Kickback |
| ------------------- | --------------- |
| Base                | 5%              |
| $100M               | 5.75%           |
| $200M               | 6.50%           |
| $300M               | 7.25%           |
| Scales per +$100M   | +0.75%          |
| $2B                 | 20%             |
| {% endtab %}        |                 |
| {% endtabs %}       |                 |

## Trading Fee Discounts \[Coming Soon]

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.

<mark style="color:blue;">**Here's how Account Tiers work:**</mark>

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.<br>

<table><thead><tr><th width="144">Tier</th><th>Fee Discount</th><th>Referral Fee</th><th>Fee Rebate</th></tr></thead><tbody><tr><td>0</td><td>0%</td><td>5%</td><td>5%</td></tr><tr><td>1</td><td>3%</td><td>10%</td><td>8%</td></tr><tr><td>2</td><td>10%</td><td>15%</td><td>10%</td></tr><tr><td>3</td><td>15%</td><td>20%</td><td>12%</td></tr><tr><td>4</td><td>25%</td><td>25%</td><td>15%</td></tr><tr><td>5</td><td>35%</td><td>30%</td><td>15%</td></tr><tr><td>Private</td><td>35%+</td><td>30%+</td><td>15%+</td></tr></tbody></table>

#### Definitions

***

**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&#x20;

**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

## Interested in taking on our Account Tier challenges?

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?<br>

<figure><img src="https://1356357463-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FrN46BgyysObtNusDYaGn%2Fuploads%2FYsF7jdDNCpqohXYfRcS7%2Fimage.png?alt=media&#x26;token=4826d15c-b875-4442-840c-da74f2b32e24" alt=""><figcaption><p>The account page helps you manage and complete opportunities to advance your Account Tier</p></figcaption></figure>

<figure><img src="https://1356357463-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FrN46BgyysObtNusDYaGn%2Fuploads%2FYWcySWNgPrc58qpG1zPo%2Fimage.png?alt=media&#x26;token=17363c6c-0b7e-4254-892d-7854b59e21b7" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
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.&#x20;
{% endhint %}

{% hint style="info" %}
*Fees indicated for esVELA staking and Trader Kickbacks are represented in percentage **after** Referral and VLP fee splits have occurred.*&#x20;
{% endhint %}


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