vxPREMIA

vxPREMIA is the omni-chain (LayerZero) voting token of the Premia ecosystem. The token represents a weighted balance of PREMIA tokens and utilizes a voting-escrow model reminiscent of Curve (veCRV). 

Upon locking PREMIA for any duration, vxPREMIA is minted equal to your deposit of PREMIA tokens. This balance is then modified by your lock period, referred to as your “Boost”.

Your balance of vxPREMIA multiplied by your Boost modifier is your “Influence”. Wallet Influence renders a wallet eligible for revenue share, fee discounts, and emissions control within the Premia ecosystem. The specific number and tier of benefits received is determined by the amount of Influence held by a given wallet.

Why is it vx better than traditional ve?

1. Utilization-based rewards mean that vote farming for low-volume pools is not economically viable, and prevents DAO takeover of emissions (see: Balancer, Convex, etc.)
2. Omni-chain means that users can bridge their locked vxPREMIA to any chain supported by LayerZero and vote on emissions or earn rewards on whichever chain they currently see the most benefit. However, the only actively maintained instance of Premia Blue currently exists solely on Arbitrum.
3. Non-transferable (soul-bound until unlocked), means that bribes are disabled by default, enabling healthier emissions governance.
4. USDCe-denominated rewards, compoundable into more vxPREMIA at any time.

• Minimum Lock: 10 days.
• Maximum Lock: 4 years.
• Withdraw Period: 10-day delay after withdrawal is requested.
• Early Unlock Penalty: 25% per year left, maximum 75%.

Influence holders can utilize the Manifold Control to direct their vote to any of Premia's Underwriter Vaults. A Vault's total valve gauge as a percentage of total Influence directs that Vaults share of Options Liquidity Mining rewards.

The Manifold Control does not operate on an epochal system; voting is liquid and applied immediately upon the next pool update transaction.

To incentivize highly utilized pools and reduce the irrational application of influence, there is a mechanism known as the flow-back throttle that creates a synthetic cap on the pressure applied at the valve level.

Flow-back throttle is calculated as (Influence * max(utilization, 0.25)); thus a less utilized pool receives a haircut on votes applied. For example, if 1,000 Influence is applied to pool "A" and the utilization rate of pool "A" is 20%, then the Influence applied to that pool is calculated as 250. If 1,000 Influence is applied to pool "B" and the utilization rate of pool "B" is 85%, then the Influence applied to that pool is calculated as 850.

80% of accrued trading fees each month are distributed to vxPREMIA holders according to their pro-rata share of Influence. For example, if a user owns 20% of the chain's vxPREMIA Influence, they will receive 20% of all trading fees distributed to vxPREMIA holders.

Accrued fees are denominated as USDCe, the Arbitrum-bridged version of USDC. Fees can be claimed or compounded into more vxPREMIA at any time.

There are multiple faucets of protocol fees that are directed to vxPREMIA holders. This includes trading fees and OLM proceeds. See more information regarding Premia Blue's fee schedule here.