Unveiling Our New Liquid Staking Product and Changes to zJOE

Vector Finance
3 min readJun 7, 2023

Vector Finance is thrilled to announce significant enhancements to our DeFi protocol, which includes the introduction of a groundbreaking Liquid Staking Token (LST) product based on sJOE. We are confident that these changes will boost yields for our stakers, flexibility for new users, and elevate Vector Finance’s position in DeFi yield boosting.

Changes to the veJOE Program

In light of the recent end of the veJOE program on Trader Joe, we will be ending our veJOE program by unstaking from it and concluding all Trader Joe pools on Vector (With the exception of zJOE staking and incentivized liquidity for zJOE.)

New LST Product: zJOE

At the core of our transformation is the introduction of a unique Liquid Staking Token product. This product will utilize zJOE and is meticulously designed to generate the highest possible yield for our zJOE stakers. With this approach, the JOE behind zJOE will be staked in Trader Joe’s sJOE and start earning USDC on whichever chain it is staked — whether it be Arbitrum, Avalanche, or any other chain. Our LST product will automatically manage the JOE based on whichever sJOE bucket is the most profitable. To simplify the process for our users, our protocol will automatically manage all bridging and fees, with all yield being bridged back and distributed on Avalanche.

Adjustments to VTX Emissions and Yield Distribution

VTX emissions on zJOE will be terminated when we switch to the new system. We will however continue to incentivize liquidity for zJOE. The yield from staked JOE will be channeled towards zJOE stakers, and will be distributed based on epochs. As long as you remain staked, you will be eligible to receive these rewards of USDC.

This change in the veJOE program means we will be lowering our current performance fee for Trader Joe/zJOE from 20% to 10%. This fee will be distributed to VTX lockers (and a smaller portion to the Vector Finance team treasury to support ongoing operations). We’re excited to see USDC start being distributed as a reward!

Epoch-based Rewards

With the change to how zJOE works we will need to also update how our rewards for staking are distributed. Rewards will still display as an APR, but will be added and distributed in 2-week epochs. That means during the transition, for the first two weeks, there will be no rewards of USDC distributed. Instead, we will accrue those over the two weeks, then distribute them during the next 2-week epoch. Don’t worry though, as long as you remain staked you’ll have your appropriate rewards streamed to you. During the first two weeks when no USDC rewards are being streamed you will still receive rewards of VTX (which will terminate once USDC rewards are streaming).

Creating a Floor Price for zJOE

We are also crafting a buyback system for zJOE when it falls below a certain ratio. This system will serve to establish a floor price for zJOE, thereby ensuring stability for the zJOE liquidity ratio and protecting the value of our token. More details on this initiative will be provided by the Vector Finance team in due course.

Conclusion

In summary, Vector Finance is embarking on a new chapter in our journey. These changes, including the unveiling of our LST product based on sJOE, and the creation of a floor price for zJOE, are designed to deliver superior yield and more flexibility for our stakers.

While these changes signify a shift in strategy, our commitment to our users remains unwavering. We are enthusiastic about the road ahead and believe these changes will reinforce Vector Finance as a leading light in the DeFi space.

As always, we extend our sincere thanks to our community for your continued support and trust. Together, we look forward to pioneering the future of DeFi

About Vector Finance

Vector Finance is the number one yield booster on Avalanche. We’re building unique DeFi strategies to for our users to earn more on their assets!

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