TOWN HALL: Liquidity Mining 2.0 with Polygon & Vesq 2.0 Update

19 min readFeb 19, 2022


SV joins Jarod in our third Town Hall with the Vesq community on Discord with exciting updates about Vesq 2.0 & more information on our Liquidity Mining 2.0 partnership with Polygon. He also shares details on various topics including the transition from Vesq 1.0 to Vesq 2.0, staking lock up periods, a Diamond Hand NFT, & VC onboarding. Lots of new info being dropped in this one!

Transcript by Decise (中文翻译)

General Update by SV before AMA section starts:

Everything mentioned during past Town Halls are still in progress. More marketing content being worked on, even talking with a TikTok marketing agency. VCs are still working on onboarding, it’s taking time because of various legal structures and regulations Vesq is required to meet, but progress is being made. Not much else new aside from a few partnerships are being made, and Liquidity Mining 2.0 (LM 2.0) is coming. Partnerships and VCs will be shared when ready.

NFTs are being made and minted, and will be airdropped to your wallets. Certain NFTs will have special features like APY increase. These NFTs are for the Diamond Hand holders who have been here since the beginning and still with us today. SV has been working personally on it to ensure it’s pushed out really soon. APY is still high to push us to the cap we will set on VSQ tokens. It has not been set but expect it to be around 100,000,000 VSQ tokens. Then, we will start with deflationary measures and strategies once that is reached.

Question 1: (Jarod) First questions are about LM 2.0, the polygon liquidity mining program. What will Vesq and VSQ holders get from this program?

SV: There’s two benefits Vesq will have. One is MATIC rewards, and these will be distributed directly to our holders. So you will be earning dual rewards before dual rewards even starts. The other is that Vesq will have massive exposure from being an exclusive partner with Polygon.

That includes ALL future Liquidity Mining programs from Polygon and other incentives or programs that Polygon provides, as well as Vesq being fully-involved within Polygon’s DeFi ecosystem, while having a pivotal part to play in these programs with this partnership.

Vesq will be the first protocol to have access to all these rewards from Polygon, which means sVSQ holders will also be the first to benefit from access to all these programs and incentives from Polygon.

Q2: (J) So Polygon will do these airdrops?

SV: We get the rewards, but redistribute it to sVSQ holders.

J: Ok, so we will need to let our sVSQ holders know in advance in case they need to move their funds from Entropyfi.

SV: Yes, that will happen, we will let them know.

Q3: (J) How much do we qualify for on the LM 2.0 program?

SV: There are a few KPI (Key Performance Indicator) metrics that are taken into consideration. There is the amount of active users, TVL, and a few other background metrics. Treasury is included as well. The amount that is locked in the treasury, the amount of sVSQ, VSQ, and wsVSQ, on top of our amount of users, actually sets us quite high on their grading system from the conversations with Polygon team members that I’ve had. How much exactly will be available and publicly released when it’s officially announced, but it is a very very nice amount.

Vesq will get an additional reward as well from Polygon, it was meant to go to me but I have decided it will be going to our sVSQ holders. That will also be a nice amount. So again, thats even more rewards on top of the rewards for LM 2.0.

Q4: (J) Do you have a rough date for LM 2.0 to start?

SV: Rough date — some time next month (March).

Q5: (J) Related to LM 2.0 mining, are we building a DAPP for other platforms to use for this, or is Polygon building one?

SV: We are actually building everything for Polygon. In terms of token and staking and the DAPP itself, for this we will be heavily rewarded, that will also go back to sVSQ holders.

Q6: (J) How long do you have to stake to qualify for the Diamond Hands NFT?

SV: From when we launched until now. Then we will set up a time period for more later on, say 4 or 6 months in the future. But for this time it’s from launch until now.

J: So it’s not even 2 months?

SV: exactly!

Q7: (J) Can you explain how current VSQ and sVSQ holders will transition to Vesq 2.0 in terms of lockups and new liquidity?

SV: So how it would work is that as soon as the lockers are out, you will migrate yourself. You will set the time frame, it’s not set by us. We will only provide guidelines on what time frame to set. Could be a week, 3 weeks, a month, 6 months, a year, up to 3 years. Depends on what the user prefers. The longer you lock up the more rewards you get and the more APY you get. It’s a simple migration of locking up your own VSQ to migrate. You don’t have to lock it up if you don’t want to, but you will not earn additional rewards.

Q8: (J) So will we need to let everyone know before the migration happens?

SV: Oh yeah, we won’t suddenly just announce “here you go guys” and there it is. It will be a transitional period where there will be frequent updates on what exactly is happening and what you will need to do.

J: And you get to decide on your own on how long you want to lock up?

SV: Yes we will offer rough guidelines on what the choices are. Can even just be 1 week or even 1 day if you really wanted to.

Q9: (J): Talking about lockers and their basket rewards, how will rewards from the protocol and airdrops like FPI be distributed?

SV: protocol rewards and most other rewards will be added to your locker and basket of rewards. Airdrops like FPI that are rewarded to us will mostly be sent straight to your wallets.

J: So you can claim the locker rewards only when the lock up is over?

SV: Yes.

Q10: (J) With the new supply cap coming in place, how will the remainder of pVSQ be distributed in Vesq 2.0?

SV: There are two solutions we are looking at when dealing with this. The first is to clear all pVSQ to pave way for the VCs, where the VCs will be clearing out the pVSQ holders themselves. The second option we are looking at is an allocation of a portion of the max cap that would be needed for pVSQ to be redeemed. We are trying to push the first option to avoid diluting further than is needed.

Q11: (J) Polygon is paying bribes for QiDao votes, will Vesq participate in the Qi wars?

SV: Yes, we are looking into multiple ways to participate after seeing this news.

Q12: (J) How are infrastructure costs covered? How much of a financial runway do we have? How will Vesq sustain itself without selling VSQ to cover costs?

SV: All of our development team have been fully paid for 1 year. So we have a 1 year runway regarding that. Everything else is paid for by me personally. Whatever it may be, like marketing or other side expenses, it is paid for by me. Not using my VSQ for that, none of our founders have sold anything yet, but I pay for things directly with my own funds. That’s where the VCs will be helping with as well, when they are onboarded.

Q13: (J) What is considered “Day 1” for the Diamond Hands NFT? Since whitelist, or when Vesq launched or went live?

SV: When the DApp went live. 1st of January.

Q14: (J) Re: Diamond Hands. What if people sold and bought back in through bonds for VSQ?

SV: You would lose your Diamond Hand status, since you would have not had any sVSQ in your wallet for a period of time. As long as you have just 1 sVSQ or even a fraction of a sVSQ at that time, you will be fine.

Q15: (J) Re: Diamond Hands. What about people that took their sVSQ and put it all in Entropyfi?

SV: We’re willing to take that into consideration.

J: So they won’t lose their Diamond Hands status?

SV: No they won’t.

Q16: (J) When will the locking system be implemented, and will lending be available at the same time?

SV: The locking system will be in place at the same time we estimated: by the end of this month with Vesq 2.0. The lending market will come shortly after that is all released, we need to make sure the lending market will be safe as well.

Q17: (J) Re: Diamond Hands. People who found out at Day 2 or 3 or came in later — will they be able to qualify for Diamond Hands status?

SV: Unfortunately no, they will have to qualify for the next round of Diamond Hands giveaways.

Q18: (J) Do you think the rewards for locking of sVSQ will make the protocol less appealing than others?

SV: It depends on how you look at it. If you’re here for the short term, to gain some rewards and then dump and disappear, it may not be as appealing. If you’re here for the long term and have a commitment to the project, that’s what we want. You can still earn rewards short term, but it will be nowhere near as much as long term lockers will be earning.

So yes it might be less appealing to those degens looking to make a quick buck, but that’s what we want to change. We want long term sustainability, like I always say, we want to be here for 3,4,5 years or longer.

Q19: (J) A question about the new upcoming UI, will we have a calculator?

SV: As we saw from Wonderland, the calculator is a false guarantee. We will provide in depth analytics on ROI and such, so you can better judge what you’ll make as opposed to a calculator. With a calculator you can easily overpromise on certain things, but with each locker and each time period, it will have its own analytics provided to you before you lock up.

Q20: (J) Any new marketing strategy to blow up Vesq for new investors?

SV: Yes, as I’ve mentioned at the beginning, I’ve been in contact with various influencers and PR agencies involving social media like TikTok. We want to be in multiple different avenues for retail investments. Aside from that the CEX listings will be going ahead soon. That should bring in an influx of users from their side. We will be going out with marketing going forward when Vesq 2.0 launches.

J: Will it just be TikTok or Youtube or…?

SV: TikTok, Youtube, articles, news media, interviews, podcasts, as many things as we can hit as possible.

J: A lot of co-marketing with upcoming partners and projects too?

SV: Yes 100%

Q21: (J) Is there any updates on VC situation since last AMA?

SV: Like I had said earlier, there’s a lot of legal structure and framework that we need to comply with. There’s a lot more required than people think, we can’t just say ok buy some tokens and that’s it, but we are progressing day by day.

Q22: (J) How much power will VCs have in terms of treasury management decisions and governance?

SV: None, they will have no power over that. Their tokens will be locked in what is called a SAFT or Simple Agreement for Future Tokens. So they will have zero voting power in terms of critical governance. That is given to the community, who have a certain lock period in order to vote.

Q23: (J) Will the VCs tokens be awarded rebases?

SV: Certain amounts will, as they unlock. After some tokens are unlocked they can use those and lock it up in lockers themselves to earn rewards.

Q24: (J) Why don’t the VCs just buy at market price?

SV: It’s specifically for the long-term holders. Anyone can come and buy from the market, any whale can come up and buy from the market, but the VCs want to be part of Vesq and Vesq’s future, and to do that they want to go through typical VC routes to fund us directly which will allow Vesq to have a larger runway in terms of lasting the next 3–5 years at the least. It’s just much easier for their company or legal holdings to go this route in terms of regulations.

Q25: (J) Is it possible to know the names of the VCs?

SV: You’ve heard of one that will be coming on board. There’s a few others, and once they have been successfully onboarded they will also be named.

Q26: (J) In Vesq 2.0, if we lock up VSQ, will we still be able to participate in Entropyfi games?

SV: Thats a mechanic we will have to work with Entropyfi to get sorted out. Once we do, we can let you know further about it.

Q27: (J) Can we get an idea of some of the previous work our developers have done?

SV: In terms of seeing their previous work, I’ll have to ask. One of our main devs is from another active project and they have an NDA (Non Disclosure Agreement) so he cannot talk about it. The others have worked on Sushiswap and various Polygon-based projects. We are also bringing on another developer for NFT work too.

Q28: (J) When will the next round of Diamond Hands rewards be?

SV: I can’t give an exact answer as of now, maybe 2–3 months down the line.

Q29: (J) In the last 15 days or so some funds were withdrawn from treasury, can we have details?

SV: It was for an ongoing purchase involving the curve wars we are preparing. It will be resupplied back to the treasury as cvxCRV and FXS. Otherwise no other funds are being used for any other reason.

J: So when it is ready that is when it will be announced?

SV: Yes, like we do with everything, wait until it’s ready.

Q30: (J) When will giveaway winners get their VSQ?

SV: As soon as possible!

Q31: (J) Do we have any new partners coming soon?

SV: Yes, always. We always have partnerships coming in.

Q32: (J) Will community members be able to suggest ideas for the protocol that would receive an incentive if the idea is used?

SV: All ideas are considered and looked at by the team. Since you’re bringing more positive value to the project, it raises the value of VSQ to you and others.

Q33: (J) Could you give a summary of the vision of Vesq and what Vesq wants to become?

SV: Imagine you’re just getting into crypto, you look into DeFi and you want to have access to all these tokens for projects but not have to deal with each one individually. Vesq will be your access and gateway to all these different projects, all from holding or locking up one token.

Vesq will have a vast network of protocols and projects that you can take part in just from being a part of Vesq. A one-stop shop of DeFI on Polygon and even ETH mainnet projects or any project that comes to Polygon through Vesq. That is why we are calling ourselves the Amazon, or the Wallstreet of Polygon. Whether it is tokens or NFTs or anything that comes our way, you will have access to it through Vesq.

J: Very interesting! So we are partnering with an NFT project?

SV: Haha, you would know about that wouldn’t you, Jarod?

Q34: (J) Have we started auditing for 2.0? Also are we holding any of Polygon’s funds through our partnership with them? What will happen if it is stolen or hacked?

SV: From the beginning, we have been focused mainly on security. We will ALWAYS be security focused. Everything we make will have to go through rigorous tests, simulations, and auditing to ensure our funds are safe.

As of now nothing has happened to us and, God Willing, nothing will happen to us. We will always be monitoring things and tracking down and eliminating every attack vector, making sure what has happened to others does not happen to us.

Safety and security is also a main part of what helps us get our great partnerships. It’s part of what Polygon themselves noticed about us for our collaboration and partnership.

Q35: (J) Was Vesq ever offered to be bought out by a larger project?

SV: No, at least not that I’m aware of.

Q36: (J) Will we be loading up on more FXS to get extra FPI?

SV: We will be, yes.

Q37: (J) If we lock up tokens for 3 years, is there some way to get a kind of passive income drip?

SV: Yeah you could provide your veVSQ to a lending platform and borrow tokens off it. Otherwise, the only other way would be the airdrops that go directly to your wallet and can be used how you want, when you like.

Q38: (J) Will we offer insurance to our users for their funds?

SV: That can be done through a 3rd party, but we will release information about insurance very soon. In case of death or something, you might want to consider making a will or leaving instructions for someone to be able to claim the funds in your wallet in the event of your passing.

Q39: (J) Will we be making adjustments to the treasury for Vesq 2.0?

SV: There will be some adjustments related to the assets currently held, but otherwise, mostly just getting more FXS for the future airdrop. There will definitely be more strategies made and shared with the community in the future.

Q40: (J) Do we have any updates on our Learn2Earn program?

SV: That will be made after Vesq 2.0 is completed. It will be a large program and will involve a lot of third parties.

Q41: (rundysey) I am coming from Entropyfi, I don’t understand the idea behind the ROI 5-day statistic, can someone explain what that is to me?

SV: The Entropyfi partnership is for utility for sVSQ. A use case. It just gives you something to do with your sVSQ. Whether you want to do it for fun or to try to get more than your normal APY staking at Vesq. We want to make sVSQ usable instead of just something that sits there.

J: The game is very simple, just try to guess if the price is going higher or lower. Currently SV is seeding some sponsor funds, about 10000 sVSQ, of which the rebases will be given as additional reward to winners. Rewards on the game are really high now so a lot of our members are playing it now. A lot of the numbers like the ROI is displayed on their website itself.

SV: The ROI is also based on the fact that you win every guess for those 5 days constantly.

(rundysey): Thank you Syed. I also want to thank you guys. You are very transparent in your dealings. I have been in some projects but they are not as transparent as you are.

SV: Thank you. We try to always be more transparent, as much as possible. If I fall ill or the other founder falls ill, we need to have transparency and automation as much as possible so the project can continue on without us.

Q42: (Retrohwcm) When launching Vesq 2.0, have we moved away from the previous talk about a mandatory lockup? Are we going to reset the price differently when liquidity is rebooted?

SV: The core team members are running simulations on the best course of action for that. One of the scenarios is to relaunch liquidity at a different price point to launch Vesq 2.0. That doesn’t mean the VCs will have better prices or someone else will have better prices; everyone will be at the same price.

VC lockup is different; community lockup will be user-decided. VC-based lockup is time-locked for a long period. Some VCs have mentioned they will be doing market buying too, but that is not related to the deals we are giving them. Closer to the time of release, we will reveal the route we will take. Mandatory lockup will not happen, only user-based lockup.

Q43: (SV) Re: Diamond Hand — What about people who bonded on Day 1?

SV: Yes, you will get the Diamond Hands reward for that

Q44: (J) Is there a similar model to Vesq on other blockchains? Will we build on other blockchains?

SV: When that moment in the future comes, we as a community can decide whether to build on another chain. Currently, we want to focus on Polygon, and build out a product here first that is fully-working, audited, and safe and secure before we move elsewhere.

For our OHM-fork model, yes of course, but for what Vesq 2.0 will be, I don’t know of any others. If someone finds one, let me know.

Q45: (Retrohwcm) After we have lockers, is there still a rebase component tied to sVSQ in addition to the locker rewards?

SV: Yes, until we reach the max cap. After the max cap, we will focus on deflationary ways to provide value like buybacks and distribution.

Retrohwcm: Let’s say the lockup period for 1 year is 1000% APY, so does the 1000% APY account for rebase rewards and the other rewards or just VSQ?

SV: No, the 1000% APY is for the rebase of sVSQ. There will be other APYs for the other tokens. You will see on the UI all the values for each reward. Like it will show 1000% for sVSQ, 10% for MATIC, etc. So you would be able to obtain more than 1000% realistically.

Retrohwcm: If those rewards are rebasing, will the rebase rewards be placed in the locked portion of the locker?

SV: Yes, you will have rewards added into the locker for those rebase rewards. It autocompounds inside the locker. So you earn on top of rewards, instead of just the initial capital.

Retrohwcm: At the end of the year long lock up, you’ll be able to unlock your total sVSQ and then the rest of the assets in the locker too?

SV: Yes, exactly how that works. Think of it as a smart wallet. It’s doing all these different things automatically in the background to earn you more and more compounding rewards.

Q46: (J) Will the new smart contracts be open sourced in github?

SV: Yes, everything we make will be open source.

J: The reason he is asking is because he doesn’t want people to make forks!

SV: Oh yeah well, it’s only going to be available after we bring it out. We are getting audited so we have to make the core contracts available to the public. We are getting peer-reviews as well, for example by AAVE. So we will provide publicly available contracts to them for security reasons. So yes it will be open source, if someone wants to fork it, so be it.

J: We are also setting up Immunifi Bug Bounties right?

SV: Yes yes yes

Q47: (SV) A member asked will there always be just 1 treasury? Or will there be various versions of the treasury?

SV: We will always have our treasury, we do have further plans to bring out inside portfolios of the treasury as an index token. It will be different versions of the treasury like different portfolios of the tokens within that people can buy. There will be options for people to buy or stake their tokens for that index token itself. But that’s all still in a research and development phase, but something we are looking at.

Q48: (sun safe) Is there a chance the Diamond Hands NFT can be pushed to the point of where people who bought at around $100 or higher can have a chance to get one?

SV: Ok, let’s set up a poll with the community! Let’s see what the community thinks. I don’t want to make a big decision on my own for something like this, we are going to set up a poll for everyone to vote on what defines Diamond Hands.

Q49: (J) Are we going to get rid of gOHM?

SV: No we won’t be getting rid of it. We have plans for gOHm as well. There is a LOT of information at this time that I can’t share, but there are some crazy big things coming for Vesq. Big things.

Q50: (Max One) Any more information about Vesq 2.0 as a whole?

SV: We will be bringing out comprehensive roadmaps and individual documents on each part of Vesq 2.0 after it comes out.

Q51: (SV) A member asked if the big news mentioned earlier is on Polygon?

SV: Yes, it is also about Vesq.

Q52: (rundysey) Are there any incentives for new members that joined recently?

SV: As a new member, you may not receive it now, but you stick around and you may qualify for the Diamond Hands NFT down the line 3 or so months from now. As long as you’re here to stay you’ll eventually always be able to take part in our giveaways, contests, and other provisions.

rundysey: Do we have to keep VSQ staked for that?

SV: Yes, that will be a requirement.

Q53: (sun safe) Is the backing price accurate? I have heard talk in the past about it being inaccurate.

SV: Yes, you’re right, as our treasury has a large portion of tokens that do not have prices configured for Polygon, our backing price is certainly higher than what our UI shows currently. We have never traded below backing price, so that’s a good sign.

Q54: (SV) A member asked if we could have weekly or biweekly community calls or town hall calls?

SV: Yes I’m definitely happy to have a regular call schedule for the community!

Q55: (J) Wen Vesq Merch?

SV: Waiting on the delivery! Everything is all set for the first batch just waiting for it to arrive.

Q56: (Retrohwcm) What is the giveaway you guys mentioned will happen in the town hall about?

SV: I was waiting for someone to mention that! Stay tuned, the very end of the call we will have it. You have to be in the call to participate, give us a minute to set it up.

Q57: (rundysey) How are we going to stop inflation of tokens?

SV: The max cap will stop inflation once reached, after that happens we will deploy deflationary measures.

Q58: (rundysey) I heard there would be VCs soon, will they be earning from the buybacks?

SV: No, the VCs will only be buying in through SAFTs, which are unlocked linearly over 3 years and won’t be sellable until after the 3 years have ended. That’s it. If they want to renegotiate terms after the 3 years, they can. But we always have the best interest of the Vesq community itself first in our mind as opposed to those of the VCs.

Q59: (rundysey) Will there be any kind of tax education on how to pay tax on earnings we make?

SV: Unfortunately that sounds like financial advice and that is something we are not certified to give, when we speculate or share info about our personal financial habits or decisions, we will always say “NFA” or “Not Financial Advice” alongside it. We’d prefer to not go to jail over something like that. I recommend contacting a legitimate financial advisor.

Q60: (J) Regarding Vesq 2.0, was this direction always the plan?

SV: Yes of course. It happened much earlier than anticipated, but it was always the plan to move to Vesq 2.0.

J: It’s good that we did!

Q61: (SV) A member asked if we mind if he makes a cap with a Vesq logo on it.

SV: No, not at all. You can create your own merch as much as you like. Just don’t start making profit off it! Just kidding! Our logos are available on our docs, you can find high quality images there.