Understanding ysCVG

ysCVG stands for yield sharing CVG, and represents a claiming right over treasury's profits that are streamed over 3 months after each TDE (Treasury Distribution Event). ysCVG does not hold any governance right over the Convergence protocol.

ysCVG rewards are initially distributed as CRV, CVX, andFXS. More tokens can be added following DAO's votes.

The amount of ysCVG a user will receive by locking CVG depends on how long CVG are locked. The longer a user locks CVG, the more ysCVG his NFT will receive.

For example:

  1. A user locks 1,000 CVG to ysCVG for 96 cvgCycles: he will receive 1,000 ysCVG (full amount);

  2. A user locks 1,000 CVG to ysCVG for 48 cvgCycles: he will receive 500 ysCVG (full amount).

However, when a lock is created during an ongoing tdeCycle N (1 tdeCycle is equal to 12 cvgCycle), the amount of ysCVG is adjusted to how many cvgCycle the lock will last within the current tdeCycle N. The full ysCVG amount will be updated at the beginning of the tdeCycle N + 1.

For example:

We consider a user who locks 1,000 CVG to ysCVG for 48 cvgCycles, during the tdeCycle N, cvgCycle 6.

His full amount of ysCVG, available for the tdeCycle N + 1, is equal to:

10004896=5001000*\frac{48}{96}=500 ysCVG

His initial amount of ysCVG, available for the tdeCycle N, is equal to:

500612=250500*\frac{6}{12}=250 ysCVG

Unlike veCVG, the full ysCVG amount remains the same until the end of the lock, and does not decrease. Rewards distribution will be done according to users shares of ysCVG.

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