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Velocimeter on IOTA

Velocimeter has expanded to several chains in its short lifetime. All expansions have been isolated instances and place no risk to deployments on previous chains, but do offer more opportunities for the community. Currently, Velocimeter is deployed on Fantom Opera, Base, Canto, and Mantle. The next expansion is to IOTA EVM.


The IOTA community is eager to learn about DeFi, and Velocimeter thinks they are a suitable project to expose them to some of the features of DeFi. 

What is IOTA?

The IOTA chain has been around for ages in crypto years, being active since 2016. This chain, however, is an isolated ledger, in the same manner that BTC is. With the rise of EVM side chains, IOTA has decided to put its efforts into their own EVM: IOTA EVM.

Some of the main points that set IOTA EVM aside from other sidechains, L2s, and alternate L1s are the following:

  • IOTA will have a long-term focus on RWA adoption.

  • IOTA has a rich network of relationships for which to push for RWA adoption.

  • IOTA is registered as a legal non-profit in Germany.

  • IOTA was the first to have DLT Foundation incorporation in Abu Dhabi which grants it close relationships with the World Economic Forum and ADGM.

  • IOTA team has a rich experience with DeFi and sees Velocimeter as a community that enjoys pushing technology innovation to the forefront.

A great place to start your journey into IOTA would be their home page at https://www.iota.org/

Dates - Wen Ser?

Epoch 0 - Thur Oct 17 00:00 UTC

  • Coupons will start being distributed

  • IVM/wIOTA LP trading is locked so coupons exercise at same rate

  • Core pools are live with gauges

  • Core pools will receive COUPON rewards

Epoch 1 - Thur Oct 24 00:00 UTC

  • 2000 IVM will be minted and distributed based on votes to all the active gauges

  • IVM/wIOTA LP trading will be live, but coupons will still be exercisable at market price

Epoch 2 - Thur Oct 30 00:00 UTC

  • Emissions will scale relative to active gauges with votes (2000 IVM / gauge with => 1% vote)

For more information on how gauges and coupons work see below or read the V4 article here https://paragraph.xyz/@velocimeter/velocimeter-v4

TLDR V4

All the current deployments of Velocimeter are in version 3, but IOTA is the first chain to host version 4.


The following hyperlinked article gives a deeper dive into V4, but here are a few bullets of what Velocimeter will run on IOTA EVM. V4 has:

  • veLPs which are LP backed veNFTs with much shorter lock times

    • On IOTA the veLP will have a lock time of 90 days

  • Options Exercise fees lump sum to LPers

  • No more Rebase

  • Emission scale based on active gauge count

  • Permissionless gauges

  • NFT splitTo()

  • Gaugeless LPs earn fees

  • VMCoupons for giveaways

Basically, the new system rewards the people that provide locked liquidity with all the fees generated by the system.

For more information on Velocimeter V4 feel free to check out this article. https://paragraph.xyz/@velocimeter/velocimeter-v4

V4 Audit

Velocimeter version 4 has successfully completed a full audit with Sherlock.


The audit report can be found here or here.

For more information on Sherlock feel free to check out their site here. https://www.sherlock.xyz/

TLDR on Graphene

Graphene is a licensed fork of Carbon DeFi that allows users to make strategy orders in the following forms: Limit orders, Range orders, Recurring orders, and Overlapping Liquidity (aka Concentrated Liquidity).

The major difference is that Graphene has the ability to reward users with other tokens. This article explains the reward system in more depth. 

https://paragraph.xyz/@velocimeter/graphene-rewarder

Graphene
will be present on IOTA once the arb bot is set up and deployed there.

Tokenomics

The Velocimeter deployment to IOTA will be tighter than all previous deployments. This is mostly due to the veLP design. 

Here are the tokenomics for the initial supply. Keep in mind there is NO MAXSUPPLY and therefore no fully diluted valuation (FDV). 

The token of Velocimeter on IOTA EVM will be known as $IVM

250,000 IVM tokens were be preminted.

  • 150,000 IVM tokens were be paired with ~150,000 usd worth of wIOTA and locked in veLP NFTs locked for 90 days.

    • 8% of these NFTs were deposited in the following safe and set aside for the IOTA foundation, set to auto full lock, and used to vote on core pools. Velocimeter will manage this for them and take a 10% management fee for doing so.

    • 30% of these NFTs were deposited in the following safe and used to vote on core pools. Revenue from these votes will be used to support the team.

    • 22% were granted to Velocimeter and used to vote exclusively on the IVM/wIOTA pair, granting all veLPs liquid VM emissions. wIOTA and IVM from earned will be used to deepen POL.

    • 40% are earmarked for future partner grants. These NFTs will not be used to vote until granted to partners. When granted to partners, veLPs will be deposited into a dedicated vault to retain custody. These veLPs will have auto-relock enabled and managed by Velocimeter. Bribes collected will be sent to the partner occasionally. In some cases, members from the partner team can be added to this safe to propose transactions.

Admin Safe - 0x4983A0E6e221dFb2C864E311a88fA55963513D44
Core Voter Safe - 0x0854D423C7016e281E5e588f47988e1728Ca64A1

IOTA Managed Safe - 0xc05809E1760459e9e380E9bF0B46ef24A46Ee98b
Graphene Tank Safe - 0xb0bb991B8d5CBE2000eBb637810E9F6bdB480D72

100,000 IVM tokens were used to mint VMCoupons and used as rewards for community members and previous veNFT holders on other chains. 

Here is a chart that outlines the distribution of the coupons.

These Community Airdrop coupons are NOT going to be airdropped anonymously, rather granted to people that show up to certain events. Holding veNFTs of other chains will just multiply the amount of coupons you receive. This will be outlined in announcements for events in Velocimeter Discord

Core Pools

To start, IVM will host the following pools in epoch 1 with gauges

  • wIOTA/WETH

  • wIOTA/USDT

  • WETH/USDT

  • IVM/wIOTA

And any partners that reach out to us before then.

During epoch 0, the trading of IVM/wIOTA pool will be paused so that all VMCoupons exercised at that time will be quoted the same price. That said, once epoch 1 starts, and emissions go to gauges, the trading of IVM must be enabled. There will be announcements that give you exact dates.

Init Whitelist Token

In Velocimeter V4, gauges are permissionless so long as the pair is using whitelisted tokens. On IOTA EVM, the initial whitelisted tokens will NOT be enabled. Therefore NO tokens will be whitelisted at first and the team will monitor the situation and decide when permissionless gauges can be enabled.

The following tokens will likely be the first to receive whitelisting:

  • wIOTA

  • USDC

  • USDT

  • IVM

Init Partnerships

Velocimeter’s first partner will be IOLend. IOLend is a novel lending market that is based on the popular Aave system with a significant upgrade. It incentivizes supplying and borrowing with their native $IOL token to users that have locked IOL/wIOTA LP from WAGMI equal to or greater than 5% of their deposits.



The IOTA community has a liquidity bootstrapping initiative, together with IOLend they are bringing about $500k of liquidity to the IOL/wIOTA pair. To further support the growth of this ecosystem liquidity, Velocimeter will be granting IOLend a 1% veLP from the partner supply allocation. 

This 1% veLP will be deposited into the following safe, and managed by Velocimeter
IOLend Safe - 0xb1AD937525F53CC18e55CB39F572E610698d207A



If you have any questions please feel free to join our discord here https://discord.gg/jeqCTChscz
seek
out the IVM channel, and ask.

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