What is esFLUO, stFLUO, and veFLUO?

There are several variations of the FLUO token, let's explain them.

In short, FLUO is the liquid token, esFLUO is escrowed FLUO, stFLUO is liquid staked FLUO, and veFLUO is vote escrowed FLUO.

What is esFLUO?

esFLUO is a non-transferable token and "es" stands for escrowed staked, meaning that $esFLUO is an escrowed version of staked $FLUO (stFLUO).

It can be obtained in one way:

  • Provide liquidity to Fluo vaults and receive esFLUO incentives

Vesting

When you claim esFLUO from Fluo vaults, the esFLUO will automatically deposit into the vesting contract with a 12-month linear vesting period that will be vested into stFLUO. stFLUO can be unlocked and withdrawn into your wallet.

$esFLUO is a locked and non-transferable version of stFLUO, and 1 esFLUO = 1 stFLUO.

Example:

You farmed 1000 esFLUO from Fluo's vaults, and you "claim" them. The 1000 esFLUO gets sent to the 1 year vesting contract and begins vesting.

Half a year later, half the esFLUO is vested into stFLUO, thus when you click 'unlock' you will receive 500 stFLUO.

At any point in time, if you claim esFLUO incentives, it also unlocks and withdraws any stFLUO you have in the vesting contract. Any remaining esFLUO that was not vested will reset its 1-year vesting period again, together with the esFLUO that you just claimed.

There will be two buttons:

  • Claim button - sends esFLUO to the vesting contract and resets esFLUO's existing vesting

  • Unlock button - unlocks stFLUO to the user's wallet

Note: If any amount of esFLUO is added to the vesting contract, it'll reset the vesting period.

esFLUO Contract Address: [TBC]

Converting esFLUO to to veFLUO

Additionally esFLUO can be converted to veFLUO (vote-escrowed FLUO) with a lock duration that is double the remaining vesting duration of esFLUO.

For example: If you have esFLUO that have just started its 1 year vesting, you can turn them into veFLUO that have an escrow duration of 2 years.

More information on veFLUO below.

What is stFLUO?

stFLUO, or staked FLUO, is a transferable liquid staked token (LST) of FLUO.

stFLUO receives FLUO incentives to encourage users to stake FLUO.

This is in the form of a growing stFLUO ratio to FLUO. This happens as the FLUO incentives are sent directly to the stFLUO contract.

stFLUO can be opened in three ways:

  • Claiming or unlocking stFLUO from the esFLUO vesting contract

  • Buying stFLUO from the open market

  • Staking FLUO into stFLUO instantly

Unstaking

You can unstake stFLUO into FLUO at anytime. The unstaking process is not instant and takes 14 days, and the amount of FLUO you get is the ratio of stFLUO : FLUO in the smart contract.

Staking FLUO

FLUO can be freely staked into stFLUO at any time. The process is instant, and the ratio is the prevailing ratio of FLUO : stFLUO.

What is veFLUO?

veFLUO is used for reward boosting and gauge voting.

Any stFLUO holder can vote-escrow their tokens and receive veFLUO at any time, thus veFLUO is vote escrowed stFLUO.

The escrow period (also known as vote-escrowed period, hence the 've' prefix) can be up to 4 years, following the linear relationship shown below:

  • 100 stFLUO escrowed for 4 years will become 100 veFLUO

  • 100 stFLUO escrowed for 1 year will become 25 veFLUO

  • 100 stFLUO escrowed for 1 week will become 0.48 veFLUO

veFLUO gradually converts into stFLUO automatically into a user's wallets as the veFLUO decays.

Additionally, any esFLUO holder can vote-escrow their tokens and receive veFLUO with twice the remaining escrow duration at anytime.

For example if you have farmed 100 esFLUO, instead of going through the 1 year escrow period, if you choose to convert all of it, it will become 50 veFLUO to represent 2 years vote escrow.

The longer the vote escrow period, the higher the weight boost, voting power and bribing rewards the veFLUO holder receives.

veFLUO has a few benefits, from reward boosting, to being able to vote and receive bribes.

LP and Staking Reward Boosting

For LPs: Holding veFLUO allows you to receive up to 2.5x more esFLUO incentives from FLUO LP vaults by boosting the weightage of their LP shares in the pool.

This helps to align long-term believers of the protocol who also provide liquidity to the protocol.

Visit the Yield Boosting page for more information.

Gauge Voting & Receiving Bribes

veFLUO holders also regularly vote on which vaults receive esFLUO emissions. Vaults that receive this emission will have boosted APR which will attract more LPs to deposit into that vault.

In order to attract liquidity, perp DEXs and protocols who want to bootstrap perp liquidity efficiently by using Fluo and incentivize voters to vote on their vault by giving bribes.

Voters will vote on vault with the highest bribe APR, and receive a proportional distribution of the bribes based on their voting power.

Visit the Gauge Voting page for more information.

Claiming stFLUO from veFLUO

As time passes, veFLUO turns into stFLUO which can be claimed on the FLUO staking page.

Summary:

• esFLUO: The escrowed and staked version of FLUO that is given as liquidity incentives

• stFLUO: The liquid staked version of FLUO that is value-accruing from vault fees

• veFLUO: The vote escrowed version of stFLUO that boosts voting power and incentives

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