Joe Wars: Vector enters the Arena
Introduction
Vector Finance is a yield booster for Platypus stablecoins’ trading DEX on Avalanche and will soon (later today) enter the Joe Wars to accumulate veJOE and try to become the Joe Wars’ King. Vector can be seen as Convex for Curve (Vector for Platypus).
Vector has been launched recently and has seen some significant success with Platypus locking. TVL is around $300M USD including their own LPs.
Now let’s analyze the strategy put in place towards veJOE and compare it with yyJOE from Yield Yak released earlier this month.
The idea behind this series of article is to do a deep dive into all Joe Wars contenders and find the winner (see our first deep dive into Yield Yak yyJOE strategy here).
Vector strategy for veJOE accumulation
When: Tuesday, April 19th at 6:00 PM UTC
Vector enters the Joe Wars later today and is the second contender to deploy its strategy after Yield Yak. It introduces the zJOE (veJOE version of Vector).
JOE holders willing to deposit JOE into Vector will receive zJOE on a 1:1 basis (1 JOE for 1 zJOE). To attract JOE holders, Vector has put in place an incentivization program applying for the first 3M JOEs converted into zJOE.
The program consists of 500,000 VTX ( shy of $500K USD worth) so that for each 6 JOEs converted into zJOEs, you get one VTX (locked for 16 weeks to avoid dumping) as incentives. So if you deposit 10,000 JOE ($11.9K USD) you will get around $1.6K USD in VTX (13% theoretical return assuming VTX stays at $0.95 USD)
Once the program closes, zJOE will be tradable against JOE contrarily to Yield Yak yyJOE strategy where they did not say explicitly that we were going to open a trading pool JOE-yyJOE in the near future.
Vector TVL related to Trader Joe is currently $0 USD compared to Yield Yak $65M USD but this is going to change with zJOE as Trader Joe Yield Farmers will have incentives to deposit on Vector to compound their rewards thanks to the veJOE accumulated by Vector. But does it make sense to convert and stake in Vector when Yield Yak is already available?
Here is how Vector plans to split the yield generated by Trader Joe Farmers who stake on Vector:
Trader Joe LP Farmers will keep 82% of their earnings if they stake on Vector (compared to Yield Yak 85%).
12% of the fee generated will go to zJOE stakers (compared to 5% for Yield Yak).
4% will go to VTX lockers.
2% will go to VTX stakers.
Given these precious data, who is gonna win the Joe Wars? Vector or Yield Yak?