Following the result of our CVIP-005 GOVI community vote, we are happy to announce that the POL bond program for the Theta Vault is now Live!
Using a process called “bonding”, the Bond protocol initiative will allow the GOVI DAO to manage its own Theta Vault liquidity.
The protocol will bootstrap a POL process for the Theta vault itself, in two parallel streams:
- Deposit part of the collected fees into the vault
- Launch a PoL process with Bond Protocol (Previously Olympus Pro), allowing users to bond Theta vault LP tokens in exchange for discounted GOVI.
The result of the above would be that the protocol itself would hold part of the Theta vault and share its yield. As an example, a $1M of PoL deposited into the vault since v3 launch, would have earned the protocol an additional ~$90k in the last quarter!
Since its launch in November, the Theta vault on Arbitrum has earned a yield of 10.06% during a 4-month period. As a next step, the generated yield should translate into increased value accrued to the protocol level. At present, 50% of the mint fee goes to the protocol, as well as 100% of the burn fee and the expedite fee. In parallel swap fees, funding fees, P&L, and arbitrage capture go to the vault depositors — the latter make up the majority of the vault’s yield, greatly favoring the vault depositors.
In comparison, a common method for value accrual in DeFi is to divide the overall fees between the protocol and the LPs — However, this solution is a zero-sum game, as whatever yield goes to the protocol comes at the expense of LPs.
You can provide liquidity to the Theta Vault using this link: https://cvi.finance/vaults
Once you get the T-CVI-LP LP tokens, it’s time to get the bonds! To do that, head over to the CVI platform and click “Bonds” or simply use this Link, please make sure that your wallet is connected to the Arbitrum network.
After that, you will be able to get your discounted $GOVI! Which will be gradually released over a period of 14 days.
We encourage our community members to take advantage of this initiative and earn by providing liquidity to the Theta Vault. As always, please contact us on our Telegram or Discord channels with any questions or concerns.
For all of our updates and to join the conversation, be sure to check out CVI channels:
v3 Litepaper: https://cvi.finance/files/CVI.v3.Litepaper.pdf
Telegram (group): https://t.me/cviofficial
Telegram (channel): https://t.me/cvichannel