# vVISR Staking

**VISR** stakers earn 10% of the swap fees that are accrued in the pools Visor manages, distributed in kind as **VISR** tokens that are purchased from the open market. Since launch these buybacks have been returned as a daily transfer to each individual stakers, but as gas fees have risen, this mechanism is no longer economically efficient.

**vVISR** is the new staking mechanism for **VISR**. Rather than distribute the **VISR** buybacks daily, these are accumulated in a pool, of which stakers own a percentage share according to their staked **VISR**. As fees are accrued upon rebalances, the 10% share that goes to **VISR** stakers is deployed to the pool, giving each staker a pro-rata allocation of these tokens.

## Mechanism

When you stake **VISR** you are now issed some amount of **vVISR**, that represents your share of the **VISR** pool that keeps growing as swap fees are earned by the protocol, and the 10% share is used to buy back **VISR**.

The main formulas behing how **vVISR** works are fairly simple. First, the minting of **vVISR** follows

$$ \text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}}$$

Then, the share of the underlying **VISR** a **vVISR** owner can claim is:

$$\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}}$$

Let's provide some simple numerical example of how vVISR works:

### Example 1: Early Minting of vVISR

Suppose you are amongst the earliest stakers before any fees were accrued, so suppose $\text{vVISR Outstanding} = \text{VISR in Pool} = 100$, and you deposit 10 **VISR**:

$$ \text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}} = 10 \cdot \frac{100}{100} = 10$$

Now we have:

- Your $\text{vVISR} = 10$
- $\text{vVISR Outstanding} = 100 + 10 = 110$
- $\text{VISR in Pool} = 100 +10 = 110$

You get back 10 **vVISR**, which now represents $10/110 \approx 9\%$ of the pool. Given the pool has 110 VISR, you are the owner of $9\% \cdot 110 = 10 \text{ VISR}$, what you added to the pool.

### Example 2: Swap Fee Accrual in the Pool

Suppose now that today had tons of volume, and the 10% cut of fees added to the pool is 20, so that now

- Your $\text{vVISR} = 10$
- $\text{vVISR Outstanding} = 110$
- $\text{VISR in Pool} = 110 + 20 = 130$

How much VISR can you claim now?

$$\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}} = 130 \cdot \frac{10}{110} = 11.8181818$$

Therefore you earned $\approx 1.82$ VISR, which is your share of the accrued fees $20 \cdot \tfrac{10}{110} \approx 1.82.$ You can burn any proportion of your vVISR that you wish, which reduces one for one the amount of vVISR outstanding.

### Example 3: Further minting of vVISR

How much vVISR will you get now if you stake more **VISR**? Suppose you want to stake another 10 **VISR**:

$$ \text{vVISR Minted} = \text{VISR Deposit } \cdot \frac{\text{vVISR Outstanding}}{\text{VISR in Pool}} = 10 \cdot \frac{110}{130} \approx 8.46$$

Given that the pool is bigger, you get fewer **vVISR** units than the **VISR** units than you put in, but these **vVISR** still represent at least as much **VISR** as you started with, and a growing amount as swap fees are added to the pool.

Now we have:

- Your $\text{vVISR} = 10 + 8.46 = 18.46$
- $\text{vVISR Outstanding} = 110 + 8.46 = 118.46$
- $\text{VISR in Pool} = 130 + 10 = 140$

Therefore you can claim:

$$\text{Claimed VISR} = \text{VISR in Pool} \cdot \frac{\text{vVISR Redeemed}}{\text{vVISR Outstanding}} = 140 \cdot \frac{18.46}{118.46} \approx 140 \cdot 15.6\% = 21.82$$

## Relevant contract addresses:

While we recommend you use our frontend to interact with our staking framework, here are the relevant addresses for those curious:

- VISR Token: [0xf938424f7210f31df2aee3011291b658f872e91e](https://etherscan.io/address/0xf938424f7210f31df2aee3011291b658f872e91e)
- vVISR Token: [0x3a84ad5d16adbe566baa6b3dafe39db3d5e261e5](https://etherscan.io/address/0x3a84ad5d16adbe566baa6b3dafe39db3d5e261e5)
- Rewards Hypervisor [0xc9f27a50f82571c1c8423a42970613b8dbda14ef](https://etherscan.io/address/0xc9f27a50f82571c1c8423a42970613b8dbda14ef)