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. 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

esVELA may be staked to earn a base of 30% of trading fees* paid in USDC (real yield) , 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.

esVELA Staking Rewards

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%.

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

All traders who complete a minimum of $100,000 weekly 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* with zero volume commitment as a gesture of our appreciation to loyal Vela trading. This program benefits traders and fulfills our VELA buybacks.

See the detailed chart below for more information on how you can earn even more rewards!

Platform Rewards Flow Process

A visual representation of the dynamic fee split within our fee and token economy

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 section.

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)

Schedule of Dynamic rewards to our users

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%

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%

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.

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	Fee Discount	Referral Fee	Fee Rebate
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%+

Definitions

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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

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?

The account page helps you manage and complete opportunities to advance your Account Tier

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.