Vector joins the JOE wars

Published by AVAX on

Vector Finance, a protocol for earning boosted rewards through liquidity provision on Platypus, has announced that they will be now joining JOE wars Tuesday, April 19th at 6:00 PM UTC.

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What are JOE wars?

JOE wars is a semi-official term describing an economic game of protocols racing to accumulate as much veJOE as possible to provide boosted yields for their users and gain governance power in the TraderJoe’s ecosystem.

veJOE behaves similarly to vePTP, which we have covered in one of our previous articles, and allows users who have been staking their JOE tokens for a while to earn boosted yields in form of token emissions on select farms. However, not everyone can or is willing to accumulate a large veJOE position. This is where protocols like Vector come in, they accumulate veJOE on behalf of all their users, allowing participants to earn boosts without needing to buy and stake JOE themselves.

How will vector acquire veJOE?

To start veJOE accumulation, protocols need to get JOE from somewhere first. Vector solves this problem by offering users to convert their JOE tokens into Vector-issued zJOE. To bootstrap this process they will distribute 500,000 of their native VTX tokens to early converters at a 1:6 ratio. That is for every 6 JOE converted into zJOE users will receive 1 VTX. This incentive program will allow Vector to accumulate up to 3,000,000 JOE.

After rewards run out accumulation won’t stop as zJOE stakers will still earn 12% of the boosted pool’s revenue, encouraging further conversion. It is important to note that 6% of the revenue will go to VTX lockers and stakers while the remaining amount (82%) will be directed to liquidity providers.

If you want to learn more about veJOE and its accumulation check out TraderJoe’s documentation.

Who else is participating?

Vector Finance isn’t the first protocol to join JOE wars, Beefy.Finance and YieldYak have already started veJOE accumulation by releasing their own wrapped versions of JOE (similar to zJOE): beJOE and yyJOE respectively. Combined these two protocols control more than 5,000,000 veJOE which amounts to 3.2% of all supply. This doesn’t seem like much, but accumulation has just started and with more protocols joining the race to get a larger stake might become very heated. If you want to follow this process more closely take a look at this dashboard one of the community members has created.


Categories: DEFI_NEWS