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Currently, you need to lock EQB/xEQB to vlEQB to share in protocol fees and acquire voting power.
The amount of vlEQB you can receive is correlated with the lock period which in turn varies from 1 to 52 weeks.
Assuming the lock period is w weeks, the formula to calculate vIEQB is:
Receiving vlEQB = w * EQB
The amount of vlEQB is the weight for sharing the lock reward and voting power. It will decrease by 1 every week that passes. By the time it can be claimed, the vlEQB will decrease to 0. But users can extend the lock period anytime to re-achieve the maximal vlEQB.
Currently, weeks are calculated from Thursday at 00:00 UTC +0 to the following Wednesday at 23:59 UTC +0. If anyone locks their funds before Thursday at 00:00 UTC+0, they will have to wait for a bootstrapping period till Thursday. During the bootstrapping period, the vlEQB balance won't be updated with a new lock. This means the vlEQB will be ready after the bootstrapping period.
Here is an example to illustrate how this works.
Bob locks 100 EQBs for 5 weeks, and Alice locks 10 EQBs for 50 weeks.
According to the formula above, Bob receives 5100 = 500 vlEQB while Alice receives 5010 = 500 vlEQB. If there is a $100 reward, they will receive $50 for each. Plus, they will have the same voting power.
If Bob has 500 vlEQB balance and locks another 300 EQB for 10 weeks on, let’s say, a Tuesday, he will only have 500 vlEQB balance before Thursday 00:00 UTC +0. After Thursday, he will have 400 + 30010 = 3400 vlEQB. Because 500 vlEQB has passed one week, it will decrease to 4100 = 400 vlEQB.
A few key points:
- The protocol fee reward will be paid out in the form of ePENDLE. Every user can lock multiple times.
- The locks will be merged if they have the same expiry time.