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Thetanuts Finance announces the launch of $NUTS governance token

2024-05-09 14:15

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Original source: Thetanuts Finance

In 2024, Thetanuts Finance reached several key milestones:

・It has been 3 years since the launch of Thetanuts Finance v0.

・The v3 version upgrade was launched, supporting users to do long and short operations.

・2024 set a new record for total notional sales and total locked volume (TVL).

・It has been half a year since the release of the Thetanuts Finance incentive Alpha version.

・Our LRT Strategy Vault was launched, allowing users to earn additional income on their LRT assets.

These achievements have helped us become the number one DeFi options protocol by total locked volume, which is the result of more than a year of hard work by the team. Therefore, we think it is time to launch $NUTS, the governance token of Thetanuts Finance, and show our next steps in building a top DeFi options protocol.

Token Utility

$NUTS is the governance token of the Thetanuts Finance ecosystem, used to drive the long-term goals of the protocol, including decentralization, governance, and incentive mechanisms.

Holders will enjoy the following token utilities:

veTokenomics & Gauge Voting

Users holding $NUTS can stake $veNUTS at a 1:1 ratio to participate in weighted voting of various components within the Thetanuts Finance ecosystem.

Governance and Decentralization

Holders of $veNUTS will participate in the governance of Thetanuts Finance and jointly promote the realization of its long-term goals.

Value Accumulation

The fees collected by Thetanuts Finance will be accumulated in the protocol treasury and managed by Thetanuts Finance DAO after the governance function is launched.

Accelerated Emission

Holders can further lock $veNUTS to receive up to 1.5x liquidity incentive accelerated emission on Thetanuts Finance.

$NUTS can be pledged as $veNUTS at a ratio of 1:1, and can then be linearly unlocked into liquid $NUTS over a period of 90 days. $veNUTS holders enjoy the privileges of Thetanuts Finance community members.

$veNUTS can be locked for up to 12 months to obtain accelerated emission, and $veNUTS cannot be unlocked during the lockup period.

Token Allocation

The maximum supply of $NUTS (ERC-20) is set at 10 billion, with an initial circulating supply of approximately 7.5%.

The token distribution of $NUTS is as follows:

・Community: 43.5%

・Investors: 11.9%

・Team: 20%

・Treasury: 20.1%

・Airdrop Season 1: 3.0%

・Public Sale: 1.0%

・Initial Liquidity: 0.5%

Liquidity Incentives

$NUTS is used to support the liquidity of the core components of Thetanuts Finance v3 and to incentivize community members in the long term. Thetanuts Finance refers to Curve's vote-escrow model.

Liquidity incentives will be distributed in the form of $veNUTS on the Ethereum mainnet at the end of each Epoch, and can be used after receiving. Users need to maintain a certain ratio of dLP to TVL throughout the Epoch to meet the $veNUTS incentive conditions.

Users who lock $veNUTS can receive up to 1.5 times the accelerated emission of liquidity incentives. The acceleration value can be calculated according to the following formula. Users can choose to lock $veNUTS that exceeds their $veNUTS lockable threshold, but the acceleration value will be calculated based on the lockable threshold of $veNUTS.

Inspired by Curve, liquidity incentives are expected to be distributed over the long term - 99% of liquidity incentives will be distributed after more than 65 years. Specifically, the emission will decrease by 2^(1/512) per week.

Dynamic Liquidity Provision

Liquidity pools on AMMs are critical to on-chain liquidity, allowing users to trade the protocol's native tokens (including $NUTS) without permission. Users can provide liquidity to the $NUTS pool to Uniswap v2, improving the liquidity and market depth of $NUTS on-chain, while being eligible for trading fees and $veNUTS emissions on Uniswap v2. Users can add $ETH or $NUTS on the Ethereum mainnet and then deposit it into Uniswap v2's $NUTS/$ETH liquidity pool in a 50/50 ratio.

$NUTS Token Airdrop

We designed the $NUTS token airdrop for specific considerations for Thetanuts Finance.

・Thetanuts Finance has been operational since November 2021.

・The v3 upgrade in December 2023 marked the launch of the v3 Incentivized Alpha on Arbitrum, providing rewards to users who provide trading volume and TVL.

・We have over 100k interactions on events across Galxe, Layer3, and Zealy.

・We launched the LRT Strategy Vault in March 2024.

Based on the above, we have determined the following airdrop allocation criteria:

Historical TVL Contribution to the Thetanuts Finance Base Treasury

1.0% of $NUTS will be allocated to users who have interacted with the Thetanuts Finance contract since our inception until the v3 Incentive Alpha version. This allocation is based on the user's time-weighted TVL contribution from November 2021 to December 2023.

Transaction Volume Contribution to Thetanuts Finance v3

0.5% of $NUTS will be allocated based on the user's transaction volume contribution in the v3 Incentive Alpha version, and operations that affect TVL contribution include longs and shorts.

TVL Contribution to Thetanuts Finance v3

1.3% of $NUTS will be allocated based on the user's time-weighted TVL contribution in the v3 Incentivized Alpha version. Operations that affect TVL contribution include Shorts, Boost, Add Liquidity, and Lend.

Participation in Thetanuts Finance's activities on Galxe, Layer3, and Zealy

0.2% of $NUTS will be allocated to users who participated in Thetanuts Finance's tasks on Galxe, Layer3, and Zealy.

Claim Your Airdrop

Recipients will receive rewards in the form of $veNUTS, which is the staking token for $NUTS - users will enjoy the privileges of being a member of the Thetanuts Finance community.

$veNUTS will need to go through an unlocking period before it can be unlocked into $NUTS - currently estimated to be 3 months, however $veNUTS can be unlocked into $NUTS immediately with some slashing.