{"id":20867,"date":"2026-06-25T02:38:05","date_gmt":"2026-06-25T02:38:05","guid":{"rendered":"https:\/\/cryptoted.net\/index.php\/2026\/06\/25\/upgrade-verse-staking-rewards-program-to-increase-capital-efficiency-you-decide\/"},"modified":"2026-06-25T02:38:05","modified_gmt":"2026-06-25T02:38:05","slug":"upgrade-verse-staking-rewards-program-to-increase-capital-efficiency-you-decide","status":"publish","type":"post","link":"https:\/\/cryptoted.net\/index.php\/2026\/06\/25\/upgrade-verse-staking-rewards-program-to-increase-capital-efficiency-you-decide\/","title":{"rendered":"Upgrade Verse Staking Rewards Program to Increase Capital Efficiency? You Decide"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<figure><img decoding=\"async\" alt=\"\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1024\/1*zFL6N60b2rGPXrNTJqIsdA@2x.png\" \/><\/figure>\n<p>Greetings Verse Community,<\/p>\n<p>We are thrilled to bring you another exciting proposal as we continue to shape the future of <a href=\"http:\/\/Bitcoin.com\">Bitcoin.com<\/a>\u2019s Verse Ecosystem.<\/p>\n<p><strong>Verse Staking\u00a0V1<\/strong><\/p>\n<p>In April 2023, we launched the Verse Staking Program which rewarded participants with VERSE for staking their VERSE on Ethereum.<\/p>\n<p><strong>Verse Staking\u00a0V2<\/strong><\/p>\n<p>In 2024, we introduced the next iteration of the program\u200a\u2014\u200a<em>Stake VERSE, Earn BTC<\/em>\u200a\u2014\u200awhich rewarded participants with tBTC for staking their VERSE. The Verse Staking Program was also expanded to Polygon. <a href=\"https:\/\/branch.wallet.bitcoin.com\/lDPudUcZKNb\">Bitcoin.com<\/a> attracts a large amount of users who want BTC, due to our domain. By aligning the Verse Ecosystem with more Bitcoin opportunities, we attracted users who are interested in holding and earning BTC, into the <a href=\"http:\/\/Bitcoin.com\">Bitcoin.com<\/a> and Verse Ecosystem.<\/p>\n<p>To date, we\u2019ve achieved:<\/p>\n<ul>\n<li>$755k+ in Total Value Locked (TVL) with 870+ participants across Ethereum and\u00a0Polygon<\/li>\n<li>$180k+ in new TVL per month (last 3\u00a0months)<\/li>\n<li>13% month-over-month user growth (last 3\u00a0months)<\/li>\n<li>USD $82,352 worth of VERSE rewards distributed in the Verse Staking Program across Ethereum and\u00a0Polygon.<\/li>\n<\/ul>\n<p>While the \u201cStake Verse Earn BTC\u201d is an attractive value proposition as evident from the high participation rate, the liquidity locked in v2 of the Verse Staking Program is not capital efficient. The liquidity is not used to support trades on any of the VERSE routes, nor liquidity for bridging across\u00a0chains.<\/p>\n<p><strong>Proposal: Verse Staking\u00a0V3<\/strong><\/p>\n<p>As in V2, Verse Staking V3 will continue to be an opportunity for users to Stake VERSE to earn BTC, to maintain alignment of the Verse Ecosystem with Bitcoin opportunities. The underlying staking contract will be upgraded for improved liquidity and capital efficiency.<\/p>\n<p>In Verse Staking\u00a0V3:<\/p>\n<ol>\n<li>users would deposit VERSE to participate<\/li>\n<li>a proportion of the deposit will be swapped to\u00a0tBTC<\/li>\n<li>both VERSE and tBTC will be deposited into a 80\/20 VERSE-tBTC Balancer\u00a0Pool<\/li>\n<li>the associated LP tokens will deposited into the Verse Staking V3\u00a0contract<\/li>\n<li>the user would earn variable APY on the staked LP\u00a0tokens<\/li>\n<li>if the user withdraws from Verse Staking\u00a0V3:<\/li>\n<li>VERSE and tBTC will be redeemed using the LP tokens, which includes any rewards earned from providing liquidity on the VERSE-tBTC Balancer\u00a0Pool<\/li>\n<li>tBTC will be swapped to\u00a0VERSE<\/li>\n<li>VERSE will be sent to the user, along with any variable APY earned for the duration of the\u00a0stake.<\/li>\n<\/ol>\n<p>On Ethereum:<\/p>\n<ol>\n<li>Launch an 80\/20 VERSE-tBTC Balancer V3 Pool. Learn more about <a href=\"https:\/\/docs.balancer.fi\/concepts\/core-concepts\/introduction.html\">Balancer Pools\u00a0here<\/a>.<\/li>\n<li>Create a seamless upgrade contract to migrate Verse Staking V2 positions into Verse Staking V3 positions. For users who migrate via this contract, a proportion of the position will be swapped into tBTC and deposited into the 80\/20 VERSE-tBTC Balancer V3 Pool\u00a0above<\/li>\n<li>Halt rewards on the Verse Staking V2 Program on\u00a0Ethereum<\/li>\n<li>Double voting power (2x) for V3 participants in Verse Community Proposals.<\/li>\n<\/ol>\n<p>On Polygon:<\/p>\n<ol>\n<li>Create an 80\/20 VERSE-tBTC Balancer V2 Pool. Learn more about <a href=\"https:\/\/docs.balancer.fi\/concepts\/core-concepts\/introduction.html\">Balancer Pools here<\/a>.a. Note: Balancer V3 is not available on Polygon at the time of writing. It is expected to be available within 2025. As such, we will use Balancer V2 in the\u00a0interim.<\/li>\n<li>Create a seamless upgrade contract to migrate Verse Staking V2 positions into Verse Staking V3 positions. For users who migrate via this contract, a proportion of the position will be swapped into tBTC and deposited into the 80\/20 VERSE-tBTC Balancer V2 Pool\u00a0above<\/li>\n<li>Halt rewards on the Verse Staking V2 Program on\u00a0Polygon<\/li>\n<li>Double voting power (2x) for V3 participants in Verse Community Proposals.<\/li>\n<\/ol>\n<p>Note:<\/p>\n<ol>\n<li><a href=\"https:\/\/verse.bitcoin.com\/farms\/eth\/\">Farming rewards on Ethereum<\/a> will still continue.<\/li>\n<\/ol>\n<p><strong>Pros<\/strong><\/p>\n<ul>\n<li>Capital-efficient use of staked\u00a0funds:<\/li>\n<li>Based on the current TVL of $700k+ in Verse Staking V2, this amount of liquidity in a VERSE-tBTC pool would make it a very healthy pool with enough depth to support trades. This would encourage more traders on the\u00a0pool.<\/li>\n<li>Additional Rewards:<\/li>\n<li>Participants in Verse Staking V3 would earn additional rewards on their staked liquidity as LP providers, proportional to the swap volume that takes place on the VERSE-tBTC liquidity pool.<\/li>\n<li>Reduction in freeloaders:<\/li>\n<li>Verse Staking V3 would no longer reward users for simply depositing idle funds for free money. Everyone\u2019s participation would now contribute to the liquidity depth in the VERSE-tBTC pool.<\/li>\n<li>Strengthened governance through increased voting\u00a0power:<\/li>\n<li>We recognize the commitment to the Verse Ecosystem from participants in Verse Staking V3, and they would have a greater voice in our community proposals.<\/li>\n<li>Balancer Hooks would provide us a way to supercharge the experience for Verse Staking V3 participations. We will explore levering hooks for use cases such\u00a0as:<\/li>\n<li>Dynamic Fee Adjustments<\/li>\n<li>Adjusting trading fees based on based on market conditions, trade size, or for holding VERSE, Verse Voyagers, or related Verse Ecosystem tokens eg.\u00a0POAPs.<\/li>\n<li>Participation Rewards<\/li>\n<li>Distribute VERSE or NFTs for swapping over a specified volume eg. 10 Verse Scratchers for swapping over $150 of\u00a0volume.<\/li>\n<li>Risk Management<\/li>\n<li>Implement circuit breakers to pause trading during abnormal market conditions.<\/li>\n<li>Governance and\u00a0Voting<\/li>\n<li>Enable token-based governance mechanisms where liquidity providers can vote on pool configurations or protocol\u00a0changes.<\/li>\n<li>Advanced Liquidity Provider Incentives<\/li>\n<li>Calculate and distribute dynamic yield boosts based on time-weighted contributions or other engagement metrics.<\/li>\n<\/ul>\n<p><strong>Cons<\/strong><\/p>\n<ul>\n<li>Existing participants in Verse Staking V2 may have difficulty migrating, leading to a loss of participation in Verse Staking V3. This is mitigated by the upgrade contract which would facilitate migration.<\/li>\n<li>Prospective users of Verse Staking V2 may have difficulty participating:<\/li>\n<li>We will explore wrapper contracts to simplify swapping and depositing the correct amounts of VERSE\/tBTC, in addition to enabling gas-less transactions for users without\u00a0gas.<\/li>\n<li>As the underlying staked asset is a LP token, participants in Verse Staking V3 are exposed to Impermanent Loss (IL), which occurs when the value of assets provided to a liquidity pool changes relative to simply holding them, leading to potential losses for liquidity providers when prices diverge significantly. <a href=\"https:\/\/support.bitcoin.com\/en\/articles\/8198424-verse-dex-pools-and-how-to-use-them#h_ac8733d513\">Learn more about IL here<\/a>. However, IL is less for an 80\/20 Balancer pool compared to a traditional 50\/50 pool because the pool is weighted more heavily toward one asset (80%) rather than requiring equal exposure. This reduces the need for frequent rebalancing as prices fluctuate, minimizing the divergence between the pool\u2019s asset ratio and market prices. As a result, price changes have a smaller impact on the pool\u2019s value, lowering the extent of IL. Read more about <a href=\"https:\/\/docs.balancer.fi\/concepts\/explore-available-balancer-pools\/weighted-pool\/weighted-pool.html#impermanent-loss\">how Balancer reduces IL\u00a0here<\/a>.<\/li>\n<\/ul>\n<p>Note:<\/p>\n<ol>\n<li>Verse Staking V3 rewards may change from time to time. Currently it\u2019s tBTC at 20%+ APY but this will\u00a0change.<\/li>\n<\/ol>\n<p><strong>Option 1: Yes,\u00a0proceed<\/strong><\/p>\n<p><strong>Option 2: No, do not\u00a0proceed<\/strong><\/p>\n<p>Each option brings its own set of strengths and considerations. It\u2019s an exciting opportunity to shape the relevance of the Verse Ecosystem, and we look forward to the community\u2019s active participation in making this decision.<\/p>\n<p>Now, it\u2019s up to you, the Verse community, to\u00a0decide.<\/p>\n<p><strong>Voting Period<\/strong><\/p>\n<p><strong>\ud83d\udc49<\/strong><a href=\"https:\/\/vote.verse.bitcoin.com\/#\/proposal\/0x7eca96be2d84999783ba0d029520bec953e4c9328f16b9dec584076d2360df9b\"><strong>VOTE HERE<\/strong><\/a><strong>\ud83d\udc48<\/strong><\/p>\n<p>The voting period for this proposal commenced on <strong>8 February 2025<\/strong> and will conclude on <strong>22 February 2025<\/strong>. During this time, we encourage all members of the Verse community to express their preferences and actively contribute to this significant decision.<\/p>\n<p><strong>Don\u2019t have VERSE\u00a0yet?<\/strong><\/p>\n<p>You need VERSE to vote on Verse Proposals. You can get VERSE in the <a href=\"https:\/\/branch.wallet.bitcoin.com\/BI751XGp0Kb\">wallet app<\/a>, on our <a href=\"https:\/\/buy.bitcoin.com\/verse\/\">website<\/a>, <a href=\"https:\/\/verse.bitcoin.com\/\">Verse DEX<\/a>, or on <a href=\"https:\/\/www.kucoin.com\/r\/af\/rMD41MP\">Kucoin Exchange.<\/a><\/p>\n<p><strong>Discussion<\/strong><\/p>\n<p>To share your thoughts, suggestions, and feedback regarding the proposal, please join the conversation in the Verse Lounge, our verified community Telegram group. Visit <a href=\"https:\/\/guild.xyz\/verse\">guild.xyz\/verse<\/a> to connect and contribute to the dialogue.<\/p>\n<p>Your involvement is crucial in determining the direction of the Verse Ecosystem. We appreciate your dedication to the Verse community and look forward to hearing from\u00a0you!<\/p>\n<p>Thank you for being an integral part of the Verse journey. Together, let\u2019s create something extraordinary!<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/medium.com\/_\/stat?event=post.clientViewed&amp;referrerSource=full_rss&amp;postId=825098fe832d\" width=\"1\" height=\"1\" alt=\"\"><\/p>\n<hr>\n<p><a href=\"https:\/\/blog.bitcoin.com\/upgrade-verse-staking-rewards-program-to-increase-capital-efficiency-you-decide-825098fe832d\">Upgrade Verse Staking Rewards Program to Increase Capital Efficiency? You Decide<\/a> was originally published in <a href=\"https:\/\/blog.bitcoin.com\">Bitcoin.com<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>\n<p><br \/>\n<br \/><a href=\"https:\/\/blog.bitcoin.com\/upgrade-verse-staking-rewards-program-to-increase-capital-efficiency-you-decide-825098fe832d?source=rss----b32abb2c5b2c---4\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Greetings Verse Community, We are thrilled to bring you another exciting proposal as we continue to shape the future of Bitcoin.com\u2019s Verse Ecosystem. Verse Staking\u00a0V1 In April 2023, we launched the Verse Staking Program which rewarded participants with VERSE for staking their VERSE on Ethereum. Verse Staking\u00a0V2 In 2024, we introduced the next iteration of [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":20868,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[21],"tags":[],"kronos_expire_date":[],"class_list":["post-20867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin"],"_links":{"self":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/20867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/comments?post=20867"}],"version-history":[{"count":0,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/20867\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media\/20868"}],"wp:attachment":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media?parent=20867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/categories?post=20867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/tags?post=20867"},{"taxonomy":"kronos_expire_date","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/kronos_expire_date?post=20867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}