We are going to create a new Lock mechanic for xTETU, this lock mechanic will make the returns of xTETU long-term holders be even higher when locking xTETU. Thus, we present through this proposal the Diamond Vault, dxTETU is the name of the vault token just like xTETU so that Diamond Hands can take advantage of the best available return from xTETU.
Diamond Vault will receive different rewards from different places in Tetu, in the beginning, the dxTETU will be incentivized by the weekly emissions, but the future perspective is that when it generates enough profits it will not receive emissions incentives.
Users who leave Diamond Vault before the end of the Lock period will lose a share of their principal deposited in a linear fashion proportional to the time they participated in Diamond Vault just like happens in the Reward Boosting system. The early exit penalty occurs on deposited funds and not on rewards.
The longer the user stays in the vault, the smaller the withdrawal penalty amount. Principal lost under the early exit penalty will be distributed to Diamond Vault participants, thus increasing the returns of dxTETU holders.
This way, paper hands will have an ineffective yield farming result while xTETU diamond hands will be even more rewarded. Diamond Vault is for true xTETU holders who have no plans to sell xTETU anytime soon.
Probably in the future, only dxTETU holders will be able to vote on governance proposals.
This way it is necessary to decide on a Lock Period for the Diamond Vault.
Please, choose the period that you will use! If you will not use this vault, better to does not to make any votes