Introducing Veranta XP: A novel DeFi rewards program

Veranta XP rewards user actions on Veranta with “experience points” (XP), which are off-chain representations of a user’s onchain actions. The goal of XP is to recognize and reward long term behavior and recurring protocol usage from our users.

XP will have a special role in the next phase of Veranta’s decentralization roadmap: The Veranta DAO.

Liquidity XP — Liquidity Providers (LPs)

LPs supply USDC and power all trades on the platform. Every LP accumulates XP, but long term LPs accumulate the most amount of XP.

To earn XP as a liquidity provider:

1. Deposits: Simply deposit USDC into the junior or senior vault. You will accumulate XP each day. Every dollar invested for 1 day in either vault gives you 1 liquidity XP. Note: Senior LPs are more protected than junior LPs in case of losses, so be careful in choosing the right vault based on your risk-tolerance.
2. Long-term LPs (locks): Locking capital (in either vault) gives you a bonus of up to 4x more XP vs unlocked LPs. You will be granted these XP after your lock is completed. The XP multiplier will depend on how long you lock for. Note: if you unlock early, you will lose the boosted XP you were supposed to get and pay an unlock fee, so lock responsibly!

Trading XP — Traders and Referrers

Traders represent the demand side and directly generate fees via leveraged trading. Similarly, referrers indirectly generate fees via referrals to other traders. We want Veranta to be the #1 destination for perpetuals trading on Base and the Superchain. Here are the basics on how to earn trading XP:

1. Trading XP = Referral XP + Volume XP.
2. Volume XP: Every $1 in volume generates at most 1 volume XP.
3. Referral XP: Users can also earn referral XP. A referring user will get 10% of the volume XP generated by the traders they refer in the form of referral XP.

Boosts: Gamified Badges for Additional XP!

XP should be fun! That is why we’ve introduced boosts — quests that offer enhanced XP boosts to the most loyal and adventurous Avanteers. There are two types of boosts:

1. Ongoing Boosts: These are badges that can be acquired via ongoing onchain quests. Examples include degen streak, high roller, locking boosts, RWA sensei and social butterfly!
2. Early bird boosts: These are badges that have been acquired by being early users of Veranta testnet or mainnet, and cannot be acquired again during Season 1. Example of these include the Early LP role in Veranta discord.

Make the most of the badges / boosts, and show them off to your fellow traders and LPs! Read more about boosts in greater detail here.

A note on fungibility

Trading XP is not the same as Liquidity XP. That is — both are not fungible! We care equally about traders and LPs, and have carefully designed Season 1 of our XP campaign to reflect their contributions differently.

Why should you care?

Season 1 will last for at-most 6 months (December 2024), meaning we reserve the right to end the season before that date. Our primary goal is to ensure a smooth transition into the next phase of Veranta: The Veranta DAO.

By joining now — you have an early opportunity to shape the future of Veranta. We are committed to building Veranta to its full potential over the coming months, and your participation is crucial in this journey and will be recognized.

View your current XP!

XP have already been retroactively distributed to active Veranta traders, LPs and referrers. View your XP at: https://veranta.xyz