veLocks and FNFTs
Currently under development for EXODIA, these two concepts will offer new ways to distribute rewards, control dilution, and manage sell pressure from certain market strategies.
A reserve currency’s most important trait is liquidity. Since locked tokens are kept in a contract and can’t be used, you are trading your token's liquidity for yield. In the long term this doesn't make sense. The premise of a Decentralized Reserve Currency is for your tokens to be used as a medium for trading, as collateral, or to store wealth. That’s why veLocks staking will be an important change for Decentralized Reserve Currencies.
VeLocks lock your tokens in a tradable NFT, called a Financial NFT (or FNFT). This brings them out of circulation from the fungible market and gives relief to the liquidity pool. They are then transferred to an NFT marketplace, like Paint Swap, which allows your position to remain liquid while you continue realizing yields.
Depending on market conditions, this innovative tool will allow EXODIA to adjust APY in order to incentivize locked or unlocked staking. It can also make higher yields available for long-term holders, and you can use your locked position in lending protocols. All this while still being able to liquidate your position by selling the FNFT. We are excited by the many opportunities veLocks bring beyond the simple wrapped version of a staked token that currently exists.
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