NFT & Boosting

NFT

veSLNA tokens are NFTs, enabling integration with other NFT-related protocols. A notable benefit of veSLNA is the ability to attach the NFT to a user's LP positions for boosted rewards. Users can possess multiple NFTs with varying veSLNA amounts and lock durations. Although multiple NFTs offer flexible management, concentrating veSLNA in a single NFT is more effective for LP boosting, as only one NFT can be attached to a gauge.

Boosting

The larger your veSLNA position relative to your staked LP and other veSLNA holders in the pool, the higher your boost, up to a maximum of 2.5x. Solunea's LP pools have a base boost of 1.0x, with a maximum of 2.5x depending on factors such as NFT (veSLNA) size and the staked LP amount relative to the total pool. This results in an effective APR range of (1->2.5x), or more precisely (0.4x->1x).

The ultra-simplified boost formula for SLNA is as follows:

min((user*0.4) + (lp_total * user_locked / toatl_locked) * 0.6, user)

- user = LP amount the user has deposited - lp total = Total LP staked - user locked = user's locked SLNA (veSLNA) - total locked = total locked SLNA (veSLNA)

Merging

To merge NFTs:

1. To merge NFTs, users need to detach NFT 1 by resetting votes and unstaking LP.

2. All token amounts in NFT 1 are merged into NFT 2, which doesn't require any detachments.

3. Since NFT 1's votes are reset during the merge and the NFT is burned, bribes no longer apply. NFT 1's veSLNA rewards will also be lost.