# [NIP-12] Fixed yield vaults

**Authors**: [1a35e1](https://twitter.com/1a35e1), bithexall, ar-metaverse

## Background

To reduce the circulating supply and reward long term supportors the authors propose the DAO introduce three vaults that offer fixed yields, denominated in NSFW+ for supporters.

## Schedule

* Complete locking contracts
* Submit contracts for audit
* Launch vaults
* After approximately 30 days calculate tokens in circulation which will inform starting price for the `NSFW+ LP`

## Voting options

There are three considerations for the paramaters for these vaults:

- `Lockup term`, How long a user will have to lock tokens for
- `Vault limit`, Maximum tokens that can be locked up in given vault
- `APY`, Fixed yeild for that given vault

After much consideration the following options have been put forward for the configuration of these vaults

### Option A - "Lower APY"

| Name | Lockup term | Vault limit (NSFW+) | APY |
|:------- |:----------- |:------------------- |:---- |
| Vault A | 3 months | 5MM | 7.5% |
| Vault B | 6 months | 15MM | 10% |
| Vault C | 9 months | 5MM | 12% |

### Option B- "Higher APY"

| Name | Lockup term | Vault limit (NSFW+) | APY |
|:------- |:----------- |:------------------- |:--- |
| Vault A | 3 months | 5MM | 10% |
| Vault B | 6 months | 15MM | 15% |
| Vault C | 12 months | 5MM | 20% |

## Considerations

* "Higher APY" will encorage more locking
* "Lower APY" is more sustainable given locking is a low effort task
* This is a one time lock, with a view to reduce circulating supply

## Appendix

* <https://discord.com/channels/988396783912779776/1014973087910989926>