Champion SLNA - cpSLNA
Overcollateralized Champion-escrowed $SLNA & $VESLNA (SOLUNEA DEX - ARBITRUM chain)
$SLNA is the native token of Solunea Dex, a ve(3,3) permissionless liquidity market, community oriented on Arbitrum blockchain. It rewards holders with a share of the platform’s revenues and also acts as a governance token for its weekly pool incentives gauge. $SLNA has a decaying emissions model.
Users can stake and lock their $SLNA tokens on Solunea Dex for a fixed period between 1 week and 4 years, to receive a vote escrow NFT (“veNFT”), which is used to record the amount of $veSLNA held by the user.
$veSLNA holders receive five benefits:
- a share of the trading fees from swaps using the platform’s liquidity pools;
- the ability to direct $SLNA emissions distributed to platform liquidity providers;
- weekly $veSLNA distribution (rebase);
- boosted APR for the Liquidity they owned.
- the opportunity to earn bribes from external parties by voting for their incentivised liquidity pools.
$veSLNA positions can be merged, and sold on the secondary market. $veSLNA time lock period can be extended.
The amount held by a given user decreases steadily to zero as the lock period moves towards its completion. Weekly rebase is to safeguard $veSLNA holders from dilution and to enable a dynamic distribution of $veSLNA among participants over time, the anti-dilution level has been capped at 30%;
$cpSLNA is an Overcollateralized Champion-escrowed version of $SLNA & $veSLNA staked for $cpSLNA to take advantage of the various benefits offered to Solunea Dex stakers.
You can mint $cpSLNA on the $cpSLNA vault page at a fix ratio of 1 $SLNA: 1 $cpSLNA and 1 $veSLNA: 1 $cpSLNA.
Remember to cast vote of your $veSLINA before mint.
You will not able to redeem $cpSLNA to $veSLNA or $SLNA.
There will be incentivised liquidity for $cpSLNA-$ETH LP.
When $cpSLNA value fall down below 90% of the $SLNA value (peg <0.85), the contract will not allow to mint more $cpSLNA from $veSLNA.
User can swap $SLNA to $cpSLNA via smart route in the $cpSLNA vault page. When $cpSLNA is above peg, $SLNA will be used to directly mint mint $cpSLNA at a 1:1 ratio. When $cpSLNA is below peg, $SLNA will be used to directly buy $cpSLNA in the $cpSLNA-SLNA liquidity pool.
From the begining of the contract, $cpSLNA token is fully backed 1:1 by $SLNA.
By the time, with the burning mechanism, when user buy/sell/add & remove liquidity of $cpSLNA and generate fee, half of the fee $cpSLNA will be sent to dead wallet and permanently out of circulating. The back ratio of $cpSLNA will be above 1:1 by $SLNA and $cpSLNA in the contract will become over-collateralized.
The more volume of $cpSLNA → the more fee is generated → the more backed ratio of $SLNA is → the more overcollateralized $cpSLNA is.
When you mint $cpSLNA, the contract will immediately try to stake and lock the deposited $SLNA or merge the deposoted $SLNA into the contract’s $veSLNA with maximum locking time of 4 years.
Once the contract’s $SLNA is staked and locked into $veSLNA, it receives five benefits:
- a share of the trading fees from swaps using the platform’s liquidity pools;
- the ability to direct $SLNA emissions distributed to platform liquidity providers;
- weekly $veSLNA distribution (rebase);
- fee from booster APR of the Liquidity providers;
- the opportunity to earn bribes from external parties by voting for their incentivised liquidity pools.
As the $cpSLNA contract perpetually re-locks its $SLNA deposits, it always strives for the maximum amount of voting power and benefits.
Earned trading fees, bribes and rebase are regularly harvested, swapped for $cpSLNA & $ETH and will be used to bribes $cpSLNA—ETH Pool on Solunea Dex.
Once you’re holding $cpSLNA, you can create $cpSLNA-ETH LP and stake into Solunea Dex to earn more $SLNA.
Where our $cpSLNA contract earns trading fees, rebase and bribes by deploying its $veSLNA on the protocol, those protocol revenues are swapped back to $cpSLNA & $SLNA and use to bribes for $cpSLNA Pool. This maximises the yield for holders above what they could obtain alone from the protocol.
Champion strives to maintain some of the lowest yield-optimizing fees, and charges standard fees on its $cpSLNA vaults.
Total of 6% perfomance fee, including:
- $Cham staker and/or bribes for CHAM pool on Solunea Dex: 2.5%
- CF&DF Treasury: 3%
- Contract’s strategist: 0.5%
Lets detail 3 levels of $cpSLNA peg:
Peg Level | $cpSLNA Peg | Recommendation/Market reaction |
|---|---|---|
1 | Peg > 1.0 |
|
2 | 0.85 < Peg < 1.0 |
|
3 | Peg < 0.85 |
|
$cpSLNA will healthily maintain peg at Level 2 (0.85 < Peg < 1.0).
No. All $SLNA voting power will be used by Champion to vote in the weekly liquidity pool incentives gauge.
Votes will typically be directed either to the liquidity pools offering the most in trading fees and bribes, or to the liquidity pools which support our $cpSLNA token ($cpSLNA-ETH LP).
The $cpSLNA contract will harvest all trading fees, rebase and bribes from the protocol and swap those for more $cpSLNA & $SLNA to bribes for the next epoch on Solunea Dex. Voting on Solunea’s incentivised liquidity pools takes place on its web app.
- If you want liquidity for your $veSLNA to farming more yield and/or to be able to sell to fiat in emergency case.
- If you do not have enough time to do the vote yourself
- If you do not want to provide Liquidity on Solunea Dex but still want to enjoy the boosted APR effect.
- If you want to enjoy “the eighth wonder of the world” — auto-compounding
Then wrappers and optimizers are there for you.
$cpSLNA is one of the solutions.
There are some reasons:
- Protocols with vote-escrowed model normally see wrappers as the exist liquidity for their vote-escrowed tokens.
- All the wrappers and their investors are facing some main difficulties: Losing its peg for the peg model or Drained out its reserve for the reserve model
$cpSLNA is built to solve it and bring a win-win-win relationship to investors, vote-escrowed protocols and Champion
- For investors: with burning mechanism, boosted APR fee, and overcollateralized model, $cpSLNA can maintain a sustainable & high peg value & APR
- For vote-escrowed protocols: Bring constant buy pressure on dex rewards token and with the overcollateralized model, $cpSLNA help to permanently remove certain quantity of $SLNA tokens from circulating supply.
- For Champion: Treasury will generate permanent voting power, maintain a long-term revenue.
$cpSLNA is not the perfect solution, as it can be lost peg and user need to form liquidity in order to take advantage on farming APR.
Last modified 4mo ago