The Metavault protocol creates value via bonds, staking and returns from investments, as well through partner protocols and platforms e.g., the trading platform. These different options are discussed.
Bonding allows you to receive discounted MVD tokens sold directly through the protocol. The protocol sells bonds in return for tokens such as DAI or USDC, with the discounted MVD tokens released to the bonder over the vesting period. Bonding requires you to actively manage your MVD portfolio, which, if done intelligently, can result in high rewards being generated quickly. Bonding supports the growth of Metavault since it is the mechanism that finances the protocol's treasury.
Staking is Metavault’s profit distribution model and is a good way of earning passive income. Staking involves locking your MVD in the Metavault ecosystem, in return for which you will receive compounding rewards in gMVD, generated through subsidiary Platforms, at a ratio of 1:1. gMVD tokens cannot be transferred or traded—their sole purpose is to afford the holder a portion of the platform profits. These profits are distributed when the Metavault rebasing mechanism creates new MVD tokens, which are then distributed to stakers.
Staking reduces your exposure risk and generates more profit, since the amount of MVD being staked grows over the time with the increased number of stakers, reducing selling pressure on the MVD token and simultaneously decreasing supply. An increasing personal stack of MVD tokens can also work as protection against any negative price action, while the reduced inflation mechanisms are doing their part to keep the MVD price from declining excessively. Optionally, you can wrap your sMVD to receive an amount of gMVD and lock it for 28 days, which would then make you eligible for extra perks in addition to the staking rewards. These include 20% of protocol's total revenue, including returns from the Metavault Trade platform as well as a portion of profits generated by Metavault partner platforms and protocols, which are platforms into which Metavault has invested via its VC investment arm, Metavault VC. Potential VC investments are voted on by stakers using the weight of their staked and locked gMVD.