Marionette (veNFT wrapper)

Unlocking the Power of Your Votes and Rewards

Marionette is a cutting-edge service built on the ERC721 standard, designed to effortlessly integrate with a variety of voting escrow protocols. It improves the user experience in these protocols by providing features like:

• Bribe optimization

• Reward consolidation

• Automatic compounding

• Simplifying the functionality of veNFTs

Key Features

1. Vote Optimization: Marionette executes voting strategies for multiple veNFTs, increasing users' rewards.

2. Reward Consolidation: Users can consolidate their rewards into a single token, reducing complexity.

3. Auto Compounding: Marionette increases the voting power of users' veNFTs by compounding rewards into the protocol's tokens.

4. Duration Management: Users can automatically extend the lock period of their veNFTs to maintain or maximize voting power.

Who is Marionette for?

Marionette is for veNFT holders who want to increase rewards and voting power in different protocols. Marionette makes voting, rewards, and veNFT functions easier for veNFT holders to use.

How it Works

1. A veNFT holder initiates the process by either approving or depositing their veNFT into Marionette, based on integration or user preferences, to start earning rewards and optimize voting.

2. Once the veNFT is approved/deposited, Marionette executes a customized voting strategy for the veNFT. The aim is to maximize the rewards, including bribes, in the voting process.

3. (Optional)

   1. If the user has opted for reward consolidation, Marionette collects the rewards earned from multiple voting rounds and consolidates them into a single token. This simplifies reward management for the user.

   2. For users who have chosen auto compounding, Marionette automatically swaps the rewards collected for the protocol's token. This process increases the voting power of the veNFTs, enhancing the user's influence in the protocol.

   3. Marionette can automatically extend the lock period of the veNFTs, either to maintain or maximize voting power. This is an optional feature that some users may choose to enable.

4. Over time, the user accumulates rewards, including bribes and other incentives by engaging with various protocols, thanks to Marionette's voting and reward optimization. The user can periodically harvest these rewards.

5. When the user decides to access their accumulated rewards or to withdraw their veNFT from Marionette, they can initiate a withdrawal request. Marionette will facilitate the process, ensuring that the user receives their rewards and veNFT safely.

Fees

For the time being, there are no fees associated with the Thena integration so users can maximize their voting power rewards

Marionette will tax 10% of all voting power that is delegated to it. This taxed voting power will be allocated by the Redacted Strategic Asset committee, with the goal of incentivizing Redacted-aligned pools containing assets such as BTRFLY, pxETH, DINERO, etc.

Note that in the setup of a ve(3,3) DEX like Thena, the voting power being taxed by Marionette still translates into the relevant swap fees and bribes for the veTOKEN holder.

For users that opt-in to “Reward Harvester” and “Autocompound” modes, a maximum of 10% fees will be charged to cover costs to claim, swap, etc., and to prevent attacks aimed at gaming the reward distribution cycles. The costs to operate Reward Harvester and Autocompound modes will vary depending on the specific market and the network’s gas costs. In practice, these fees would likely be lower 10% on L2 and alt-L1 networks that don’t have high gas costs. For illustrative purposes, a potential fee structure for the THENA market could be:

• 5% swap fee, for both Reward Harvester and Autocompound modes (can vary for the two)

• 5% vote fee, that applies to the vote power and can generate rewards from the protocol's trading fees and bribes (if any)