Utilities

Acting as the governance token of AirPuff, locking $APUFF and hold veAPUFF will get users multiple utilities and further maximise their rewards.

$APUFF Emission

$APUFF emissions are allocated across all products, with a unique mechanism to encourage long-term participation. To qualify for $APUFF emissions, users need to lock a minimum of 5% of their position's USD value in veAPUFF, aligning veAPUFF's price with $APUFF's current market price.

Examples of Emission Eligibility:

  • Example 1: Depositing $1,000,000 in ETH without any veAPUFF holdings will yield basic APY without additional $APUFF emissions.

  • Example 2: A $1,000 ETH deposit with $50 in veAPUFF holdings meets the 5% requirement, making the user eligible for $APUFF emissions.

Benefits of $APUFF Locking into veAPUFF:

  1. Encourages Long-Term Engagement: By locking $APUFF, users demonstrate a commitment to AirPuff, increasing the stability of their investments.

  2. Activates $APUFF Emissions: This engagement directly correlates with eligibility for $APUFF emissions, rewarding long-term and supportive users.

  3. Stabilizes $APUFF Value: Locking mechanisms reduce market selling pressure and discourage quick profit-taking by necessitating a 5% lock-up, which stabilizes the $APUFF price.

This strategy fosters sustained liquidity and attracts new capital, benefiting both users and AirPuff.

Maintaining Eligibility Status

To remain eligible for $APUFF emissions from both lending pools and strategy deposits, ensure at least 5% of your deposit's USD value is locked in veAPUFF.

Note that price volatility may affect eligibility status

Example of Fluctuating Eligibility:

  • Peter has $5 in veAPUFF and a $100 USDC deposit, meeting the 5% requirement. If $APUFF's price drops by 10%, Peter's veAPUFF value falls below the threshold, affecting his eligibility for emissions.

Active emission status is indicated by banners on the site. If you become ineligible, a notification will guide you on how to add veAPUFF and regain eligibility.

Points Sharing

veAPUFF holders are entitled to a share of 5% of all points collected from leveragoors. The distribution of these points is proportional to each holder's share of veAPUFF relative to the total veAPUFF supply.

LockersPoints=UserveAPUFFAmt/veAPUFFTotalSupplyβˆ—LeveragoorsTotalPointsβˆ—0.05\small Lockers Points = UserveAPUFFAmt / veAPUFFTotalSupply * Leveragoors Total Points * 0.05

This feature enables AirPuff users to benefit from airdrop rewards indirectly, without the necessity of directly participating in the underlying protocols and strategies.

Particularly in scenarios where the Total Value Locked in strategies is substantial, and the total supply of veAPUFF is relatively smaller, veAPUFF holders may receive a more significant share of airdrop rewards compared to direct engagement with the same USD value in the underlying protocols. This is due to the allocation of 5% of the total contract value, showcasing an innovative way to maximize rewards through the AirPuff ecosystem.

Voting Gauges

veAPUFF holders possess the capability to directly influence AirPuff's ecosystem by voting on the emission rates allocated to each pool. This mechanism ensures that the distribution of rewards is aligned with the preferences and strategic interests of the community.

Mechanism Overview:

Each week, veAPUFF holders are invited to vote on how emissions are distributed across the various buffs and lending pools. With a predetermined total emission for all pools, the power of each vote is determined by the amount of veAPUFF staked, with each veAPUFF unit equating to one vote. Consequently, the $APUFF emissions allocated weekly are divided based on the voting outcomes, ensuring that pools receiving more votes are awarded a larger share of the emissions.

This democratic process not only empowers veAPUFF holders to shape the protocol’s reward strategies but also encourages active participation in governance decisions. By casting votes for preferred pools, users can create a tailored reward distribution pattern, fostering a dynamic ecosystem where strategic engagement enhances individual and collective gains.

Last updated