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FVMFVMby0xA3082Df7a11071db5ed0e02d48bca5f471dDbaF4friendtech33.eth

Use 25% of options redemption $FTM to fund buybacks used to load veBOOSTER @25% boost rate

Voting ended over 2 years agoSucceeded

The primary theme is redirection of 25% of FTM revenue from options exercises to be used for buy-back and funding veBOOSTER (accumulate for now until the current airdrop campaign is over; at which point veBOOSTER would be set to 25% bonus).

Consistent buy-back mechanism is a better and more efficient use of a small portion of FTM revenue than not as it supports price, which increases APRs as well as increases the amount of FTM required to exercise an option, which ultimately increases the revenue directed to LPs.

As we have seen, FTM price has been rather stable yet the amount of FTM streaming to LPs is decreasing. This is due to the price of FVM being low which means less FTM is required to exercise an option, meaning LPs earn less.

By redirecting 25% of FTM generated through options, this creates constant buy pressure to better support consistent LP FTM revenue and support APRs for incentives across the protocol.

Additionally, by using the 25% of FTM to buy-back and fund veBOOSTER, this further compounds the buy pressure. For example, if $10k were used to buy-back and fund veBOOSTER, at a 25% veBOOST bonus, this would then support $40k worth of buy pressure before it was depleted. Thus, for a $10k buy back the mechanism incentivizes 5x total buy volume

To recap: 10% to Treasury 25% to buy-back and fund veBOOSTER @ 25% boost factor. 65% to LP

Off-Chain Vote

Yes
1.05M VotingPower85.2%
No
182.71K VotingPower14.8%
Quorum:205%
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Discussion

FVMUse 25% of options redemption $FTM to fund buybacks used to load veBOOSTER @25% boost rate

Timeline

Aug 08, 2023Proposal created
Aug 08, 2023Proposal vote started
Aug 11, 2023Proposal vote ended
Oct 26, 2023Proposal updated