1. Motivation for Introducing New Assets
To drive the expansion of the Inertia DeFi ecosystem, we are introducing a new asset that will drive further growth through enhanced VIP scores. This new asset is Inertia’s innovative $sLP. As a strategic starting point for growth, these assets will be allocated VIP Scores and Inertia points to incentivize early adoption, fostering increased liquidity and user engagement from the outset.
2. Overview of sLP
sLP: A lending asset paired as USDC-INIT, designed to enhance lending efficiency within the platform.
3. Current VIP Score Calculation Framework
VIP Scores are currently computed based on historical Total Value Locked (TVL) data from the previous stage, ensuring continuity and fairness. The formulas are as follows:
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VIP Score per Second from Supplying:
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VIP Score/sec (INIT Supply) = (Total INIT Supplied_{previous stage} × 4) / 1,209,600
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VIP Score/sec (sINIT Supply) = (Total sINIT Supplied_{previous stage} × 4) / 1,209,600
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VIP Score per Second from Borrowing:
- VIP Score/sec (INIT Borrow) = (Total INIT Borrowed_{previous stage} × 2) / 1,209,600
VIP Score/sec (sINIT Borrow) = (Total sINIT Borrowed_{previous stage} × 2) / 1,209,600
- VIP Score/sec (INIT Borrow) = (Total INIT Borrowed_{previous stage} × 2) / 1,209,600
Note: All “Total Amounts” are derived from end-of-stage values from the prior period. The denominator of 1,209,600 represents the total seconds in a two-week stage.
4. Proposed Adjustments for sLP VIP Score Calculation
Given the initially limited TVL expected for sLP, we have designed a progressive scaling mechanism to fairly allocate VIP Scores:
Progressive Scaling Phase:
For the first five VIP stages after implementation, sLP’s VIP Score calculation references sINIT’s TVL with incremental scaling factors. The scaling factors progressively increase by 20% each VIP stage, achieving a 1:1 ratio with sINIT in the fifth and final phase.
The formula during this phase:
- VIP Score/sec (sLP Supply) : (Total sINIT Supplied_{previous stage} × scaling factor × 4) / 1,209,600
Transition to Direct TVL Reference:
From the 6th stage onward, or as soon as sLP TVL equals or surpasses sINIT TVL within the initial five stages, the calculation transitions directly to:
VIP Score/sec (sLP Supply) : (Total sLP Supplied_{previous stage} × 4) / 1,209,6004. Target Implementation
5. Strategic Benefits and Conclusion
This framework ensures transparent, fair VIP Score distribution, strategically rewarding early contributors and accelerating balanced asset growth.
By incentivizing adoption during the initial phase and scaling rewards as TVL matures, Inertia positions itself for sustainable expansion, enhanced liquidity, and long-term value creation for all stakeholders in the DeFi ecosystem.