Are you tired of the hassle but still crave for huge rewards? If so, then prepare to be amazed by this hidden gem. 💎
Introducing a sustainable flywheel where you can earn a whopping 200% APR all paid in stablecoin! 👀
Shall we dive in? 🧵
Bookmark this because you won’t want to miss this one 👀👇
In this thread I will cover;
1️⃣ The pain points of ve(3,3)
2️⃣ What is Caviar?
3️⃣ The benefits of Caviar
4️⃣ Working mechanism
5️⃣ Conclusion
1️⃣ The pain points of ve(3,3)
The ve(3,3) mechanism stands out as a particularly innovative strategy in DeFi. But what exactly is this flywheel, and how does it function? Let’s clear this up step by step.
Here's how it works:
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• Users deposit their LP tokens to farm ve(3,3) governance token.
• Users have the option to lock these tokens to receive veXXX
• Then, they can vote to direct emissions to the pool of their choice, further increasing their yields.
So, ve(3,3) is not solely focused on individual profit. It operates as a community-driven mechanism where active user participation shapes the distribution of rewards.
Therefore, incentivizing users and fostering a strong community are crucial to the success of the ve(3,3) game.
However, the barrier to entry for playing the game is high.
Users must lock and vote weekly for the pools that receive luxury bribes, which can make it challenging for regular DeFi users to maximize their rewards.
What often occurs is that one crucial step, which involves acting in the community's interest, fades away.
If individuals don't understand how to maximize their rewards, they end up simply LPing and dumping the rewards without actively participating in the game.
This negatively impacts the overall performance of the flywheel and diminishes the net benefit for all participants, including LPers. It becomes a complete race to the bottom.
So the pain points are:
• There is a higher barrier to entry for normies or even DeFi beginners.
• There is a lack of guidance for potential users to act on ve(3,3) philosophy's interest.
• Users might be hesitant to lock up their assets for extended periods (illiquidity concerns), especially during volatile market conditions.
• Even voting fatigue might happen if we consider how attention span is shorter for CT.
2️⃣ What is Caviar?
Enter - Caviar - a liquid wrapper for the @pearl ecosystem. Think of the luxury and simplicity of caviar. That's what CAVIAR by Tangible DAO is all about.
CAVIAR can make the DeFi landscape more accessible by simplifying and streamlining several steps of the ve(3,3) mechanism into a single process.
This minimizes barriers to entry and makes it easier for newcomers to participate.
To understand the potential benefits of using Caviar, I highly recommend reading the tweet below.
Pearl Finance mandates its partners to pair their assets with $USDR, a stablecoin backed by RWA holdings.
twitter.com/cyrilXBT/status/1671469722356023297?s=20
Pearl has 3 strong narratives as the time being;
• Optimized ve(3,3)
• RWA
• Launching a liquid wrapper for vePEARL - Caviar
3️⃣ The benefits of Caviar
You can be a $PEARL holder, a $vePEARL holder, or neither of them. This product caters to your desire for maximized yield while providing the simplicity you deserve through close-to-passive investing.
• Incredible High Yield: Caviar doesn't settle for less. You can stake $CVR and earn triple-digit yields, all in stablecoins.
• Utter Simplicity: You can let Caviar handle the work. It votes on your behalf, ensuring optimized returns without the regular hassle of ve(3,3).
• Mitigating Illiquidity Concerns: Dive in or out as you please. With CAVIAR, there are no lock-ups. You can convert vePEARL-CVR anytime or swap for PEARL on the secondary market.
4️⃣ Working mechanism
Tangible simply uses vePEARL that has been received from $CVR minting operations to vote on most profitable pools. Profit is shared as ;
• 80% to Caviar stakers
• 20% to veTNGBL holders
It just takes 3 steps to earn those triple-digit earnings:
☑️Get Caviar: You can either buy from the CVR/PEARL pool or mint with your $PEARL, vePEARL.
☑️Stake Caviar: Stake $CVR on Tangible for a 200% APR.
☑️Claim: You can claim anytime or compound for higher returns.
You would like to redeem $vePEARL?
Not a problem, as I said, this is a liquid wrapper for $PEARL. It aims to solve illiquidity on the current ve(3,3) mechanism.
You can convert your Caviar to $vePEARL anytime you want with a 3.5% fee or sell $CVR for $PEARL on the market.
Until 4M $vePEARL static fee is going to be implemented at a 5%. After this milestone is achieved, the dynamic fee procedure is going to come into play.
Therefore, it might be more capital efficient to get in before the pool finishes.
twitter.com/tangibleDAO/status/1691963461327335784?s=20
5️⃣ Conclusion
I believe this is the next evolution in vote escrow tokenomics with its benefits. As I mentioned above, addressing the pain points of ve(3,3),
Caviar will be a great tool for ensuring that a flywheel is created for the benefit of all stakeholders of the Pearl eco.
I will be watching the CVR/vePEARL ratio to observe the dominance of the product. With increasing dominance, the maximization of yield will increase for vePEARL holders.
The ve(3,3) flywheel will be in full swing; therefore, longing $Pearl or minting $CVR would be a luxury.
Betting on the success of the Tangible ecosystem is betting on RWA and the end game for ve(3,3).
Disclosure: This tweet has been made collaboration with Tangible DAO.
I am sharing only projects that has a high quality of product and team.
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