[HIP-1] Whitelisting veToken Finance (Moonriver)

This proposal is to vote for the request to whitelist veToken Finance in Hundred (HND) “Whitelist” contract, allowing veToken Finance to participate in locking HND permanently and allow vault farming pools and future veHND related benefits to regular users.

Background

• veToken Finance (VET)’s mission is to support and help projects which adopt veToken tokenomics (Curve’s veCRV model) and enable regular DeFi users to boost yield and - farming rewards at the same time.
• veToken has been supported and whitelisted by SaltwaterLab and PICKLE Finance, and - th#e main contract has been audited.
• There are a few projects (who have adopted the veCRV model) that have been engaged with VET, such as Snowball, wasabi, etc.

---

Abstract

• veToken Finance allows users to lock HND through its own smart contracts to HND’s smart contract permanently while issuing another token, called vetHND at a 1:1 ratio.
• veToken Finance uses its own governance token (VET) as an incentive to create liquidity between HND-vetHND so that users can sell it in the secondary market as they please.
• veToken Finance provides the ability to provide regular users with access to vault farming without auto selling rewards, while taking a 16% performance fee from vault users.
  • 10% to vetHND/HND LP provider
  • 5% to VET Stakers
  • 1% for the harvest caller
• veToken Finance works in a similar capacity as how Convex Finance & Yearn Finance work with Curve.

---

Benefits to Hundred Finance

• Hundreds Finance supply and TVL will be increased: since more HND has been permanently locked through veToken Finance, the amount of HND in the market is reduced, and each individual vault’s (hUSDC, hMIM, hFrax etc) APY is increased. Accordingly, more users supply for lending, more users borrow assets through HND - and there is more protocol revenue (in the future) for HND, thus more HND permanently locked. This feedback loop directly benefits the HND founding team and veHND holders, as revenue increases and value of HND is increased.
• Existing vault users + new vault users can join the veToken finance wrapped vault in our dashboard and farm there to access vault farming, all while getting incentives by VET. All TVL makes its way into HND, and makes the HND vault farming more accessible and profitable for regular users. This benefits both existing HND holders and veToken Finance VET holders.
• Unleash more tools within the ecosystem and project in joining Hundred Finance: the contract veToken Finance has built can be used to expand the ecosystem of Hundred Finance, as other projects can build on top of our smart contract in order to initiate more innovation - such as using hToken assets as collateral assets to create stablecoin or synthetic assets – with the reference of CRV to CVX , Yearn, IronBank to MIM, etc.

---

Tokenomics of VET:

Key points:

• Team token vested in a 4 year schedule.
• Investor’s token is under a 1 year lockup.
• Airdrop: The airdrop is 0.6% of the Total Supply, vested 1 year after product launch:
  • 0.4% to all veHND holders who vote YES on this proposal
  • 0.2% to all veHND holders, regardless whether they participated in this proposal or not

VET Functions:

• Vote to change VET emission rates.
• Participate in veToken platform governance – gauge weights only.
• Vote to integrate other projects which adopt voting escrow token economics.
• More to come.

Notes & Resources:

• Whitelisting veToken Finance is supported by the Hundreds Finance core team.
• The whitelist will be applied to all the chains that veHND has been and will be deployed.
• veToken Finance has completed its audit with Quillhash (link).
• https://vetoken.finance/
• https://app.vetoken.finance/ (under development)

Please cast your vote: 1 - YES, whitelist veToken 2 - NO , do not whitelist veToken