veSAIL is the vote escrowed token of AdmiralDAO. It enables SAIL holders to stake their tokens in an escrow account to earn additional SAIL, further increasing their voting rights and giving governance participants a vested interest in managing the DAO.
How veSAIL Works
SAIL holders stake their SAIL in the escrow account and receive veSAIL in return. veSAIL can be used in governance, just like SAIL.
To convert veSAIL back to SAIL and redeem rewards, depositors burn their veSAIL. The exchange rate between veSAIL and SAIL changes over time, depending on how much additional SAIL (for rewards) resides in the redemption contract.
Is There a Lockup Period?
Currently, there is no required lock-up period for veSAIL, similar to the 0-day lock-up for xSushi. However, a lock-up parameter may be implemented by DAO governance in the future.
Note that although there is no required lockup period, the longer a deposit is left in the escrow contract the more rewards it accrues.
Where Do the SAIL Rewards Come From?
A portion of Clipper’s protocol fees will be used to purchase SAIL off the open market. This SAIL is then deposited into the redemption contract and distributed as rewards to veSAIL holders. In the future, SAIL rewards may be vested over a long timeframe to ensure long-term incentive alignment of governance participants.