VIRTUS PROTOCOL OVERVIEW
1. Introduction
- 1.1 What is VIRTUS Protocol
- 1.2 Core Architecture
- 1.3 Deployed on Base
- 1.4 Contract Addresses
2. Dashboard
- 2.1 Overview
- 2.2 Protocol Metrics
- 2.3 User Portfolio
- 2.4 Weekly Epoch Cycle
3. Swap
3.1 LP Swap
- 3.1.1 How It Works
- 3.1.2 Supported Pairs
- 3.1.3 Trading Fees
- 3.1.4 Slippage & Price Impact
3.2 Multichain Swap
- 3.2.1 How It Works
- 3.2.2 Supported Chains & Tokens
- 3.2.3 Exchange Fee
- 3.2.4 Integrated Providers
- 3.2.5 Multichain Swap vs LP Swap
3.3 Wallet Integration
4. Pool
4.1 Liquidity
- 4.1.1 Pool Types
- 4.1.2 Blue Fish Pools
- 4.1.3 Fee Tiers
- 4.1.4 Fee Routing
- 4.1.5 Gauges & Emissions Routing
- 4.1.6 User-Created Pools
4.2 Deposit
- 4.2.1 How to Provide Liquidity
- 4.2.2 Position Management
- 4.2.3 Locked Positions (VRT → veVRT)
- 4.2.4 Claiming Rewards
4.3 Protocol Fee Structure
5. Governance
5.1 Lock
- 5.1.1 Create Lock
- 5.1.2 Manage Your Locks
- 5.1.3 Voting Power Decay
5.2 Vote
- 5.2.1 How Voting Works
- 5.2.2 Voting Rewards
- 5.2.3 What if You Don’t Vote?
- 5.2.4 Voting Pools
5.3 VRT Exchange
- 5.3.1 How It Works
- 5.3.2 Pricing by Lock Duration
- 5.3.3 Key Details
5.4 Bribes & External Incentives
- 5.4.1 How Bribes Work
5.5 Emission Schedule
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5.5.1 Phases
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5.5.2 Emission Distribution
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5.5.3 Design Principles
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5.6 Token Whitelist
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5.7 Weekly Tasks
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5.8 Emergency Council
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5.9 Anti-Capture Mechanisms
6. Points
- 6.1 How Points Are Earned
- 6.1.1 Liquidity Pool Points
- 6.1.2 Multichain Swapper Points
- 6.2 VRT Exchange via Points
- 6.3 Vesting Terms
- 6.4 Points-to-VRT Conversion
- 6.5 Use of Funds
- 6.6 Points Program Initial Allocation
- 6.7 What Happens After the Points Program
7. Tokenomics
- 7.1 Token Overview
- 7.2 Supply Model
- 7.3 Initial Distribution (200M VRT)
- 7.4 Emission Schedule
- 7.5 VRT Fed (Democratic Monetary Policy)
- 7.6 Revenue
- 7.7 Protocol Fee Structure
8. Roadmap
- 8.1 Phase 1: Liquidity Pool Launch & Soft TGE
- 8.2 Phase 2: Points Program
- 8.3 Phase 3: Emission Start
- 8.4 Phase 4: Vote & Lock Activation
- 8.5 Phase 5: DEX Listing
- 8.6 Future: VRT Fed Activation
9. Security
- 9.1 Smart Contract Audits
- 9.2 Smart Contract Immutability
- 9.3 Multisig Controls
- 9.4 Emergency Council
- 9.5 Non-Custodial Architecture
- 9.6 On-Chain Transparency
- 9.7 Risk Disclosures
10. Legal
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10.1 Legal Disclaimer
- 10.1.1 Scope and Definitions
- 10.1.2 Non-Custodial Nature
- 10.1.3 No Financial Advice
- 10.1.4 Protocol and Interface Distinction
- 10.1.5 User Representations and Warranties
- 10.1.6 Integrated Partners
- 10.1.7 Usage Restrictions
- 10.1.8 Who May Use the Services
- 10.1.9 Wallet Integration
- 10.1.10 Investment Risks
- 10.1.11 No Warranties
- 10.1.12 Security
- 10.1.13 Limitation of Liability
- 10.1.14 Tax Obligations
- 10.1.15 Dispute Resolution and Arbitration
- 10.1.16 Prohibited Activities
- 10.1.17 Third-Party Services
- 10.1.18 Intellectual Property
- 10.1.19 Changes
- 10.1.20 Contact
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10.2 Terms of Service
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10.3 Privacy Policy
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10.4 MiCA White Paper
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10.5 Restricted Jurisdictions
11. Resources
- 11.1 Official Links & Media
- 11.2 Contract Registry
- 11.3 FAQ
1. Introduction
1.1 What is VIRTUS Protocol
VIRTUS Protocol is a decentralized exchange and liquidity marketplace deployed on Base, an Ethereum Layer 2 Optimistic Rollup. It combines automated market maker (AMM) functionality with a vote-escrow governance model (ve(3,3)), enabling users to swap tokens, provide liquidity, and participate in protocol governance — all without intermediaries or centralized custody.
The protocol operates without venture capital backing and without token sales. It is maintained and governed by its community of token holders and liquidity providers.
Tagline: A token of integrity — Powered by us.
1.2 Core Architecture
VIRTUS Protocol inherits its smart contract architecture from Velodrome V2, one of the most widely adopted ve(3,3) DEX implementations on Optimism. The codebase was audited by Spearbit during February–March 2023, covering 119 findings: 1 critical (fixed), 8 high (all fixed), 19 medium (16 fixed, 3 acknowledged).
How It Works
The protocol consists of five core layers that work together:
Dashboard — A unified view of protocol metrics (TVL, volume, fees) and individual portfolio positions.
Swap — Users trade tokens through two engines: an on-chain LP Swap for pairs hosted in VIRTUS liquidity pools, and a Multichain Swap aggregator (powered by Rango and LiFi) for cross-chain routing across supported networks.
Pool — Liquidity providers deposit assets into pools and earn either trading fees (if unstaked) or VRT emissions (if staked in a gauge). Pool types include stable (correlated assets, e.g. USDC/USDT), volatile (standard x*y=k for uncorrelated assets), and concentrated liquidity (Slipstream CL pools for capital-efficient price ranges). Blue Fish Pools (WETH/USDC, cbBTC/USDC, WETH/cbBTC) serve as the protocol's primary liquidity backbone.
Governance — VRT holders lock tokens to receive veVRT (an ERC-721 NFT), which grants voting power over gauge emission allocations. Voters select pools, set relative weights, and earn voting rewards: trading fees from pools they vote for plus any external bribes deposited to attract votes. Voting runs weekly from Thursday 00:00 UTC to Wednesday 23:59 UTC.
Points — A 6-month incentive program that rewards early liquidity providers and swapper users with Points, which convert to VRT under predefined vesting and conversion rules after the program concludes.
ve(3,3) Model
The ve(3,3) mechanism aligns incentives across all participants:
- Liquidity Providers (unstaked) earn 100% of trading fees from their pool, proportional to their share.
- Liquidity Providers (staked in gauge) forgo trading fees and instead earn VRT emissions directed to that pool's gauge.
- veVRT Voters direct emissions to pools by voting on gauges and earn 100% of trading fees from voted pools plus any external bribes deposited for those gauges.
- veVRT Lockers (non-voters) receive rebases (anti-dilution rewards in VRT) that protect voting power from dilution, but earn no trading fees or bribes.
- Traders access deep liquidity with competitive fees.
The protocol charges no fees and takes no automatic cut from trading — this is by design. To earn as protocol, the team creates veNFTs, votes on gauges, and receives fees and bribes like any other voter. Team funding comes from up to 5% of weekly emissions allocated via the Minter.
Voters who lock longer receive proportionally more voting power (up to 4-year maximum lock). Voting power decreases linearly as the lock period expires.
1.3 Deployed on Base
VIRTUS Protocol is deployed exclusively on Base, an Optimistic Rollup built on the OP Stack that settles to Ethereum Mainnet.
| Property | Detail |
|---|---|
| Network | Base (Chain ID: 8453) |
| Settlement Layer | Ethereum Mainnet (Proof-of-Stake) |
| Rollup Type | Optimistic Rollup (OP Stack) |
| Block Time | ~2 seconds |
| Consensus | Inherits Ethereum PoS security; no independent consensus mechanism |
| Token Standard | ERC-20 (VRT), ERC-721 (veVRT) |
| Smart Contract Language | Solidity |
Base provides low transaction costs, fast confirmation times, and Ethereum-grade security through periodic state commitment and fraud proof mechanisms.
Energy & Sustainability
As a Layer 2 protocol, VIRTUS does not operate independent validators or miners. Estimated annual energy consumption is 50,000–150,000 kWh (0.1–0.5% of Ethereum's total), producing approximately 18–54 tonnes CO2e per year. Methodology follows the Crypto Carbon Ratings Institute (CCRI) framework adapted for L2 networks.
1.4 Contract Addresses
All core contracts are deployed on Base and are publicly verifiable.
| Contract | Address |
|---|---|
| VRT Token (ERC-20) | TBA |
| veVRT (VotingEscrow, ERC-721) | TBA |
| Minter | TBA |
| Emergency Council | TBA |
Wallet Architecture
| Wallet | Purpose |
|---|---|
| Operational Wallet | Holds genesis VRT allocation; funds operations, grants, liquidity incentives |
| Team Wallet | Holds team VRT for Lock & Vote; holds Points Program allocation |
| Deployment Wallet | Executed genesis mint only; no long-term custody or spending role |
Official Links
| Channel | Link |
|---|---|
| App | https://app.virtus-protocol.com |
| Telegram Bot | https://t.me/VirtusProtocol_bot |
| X (Twitter) | https://x.com/VirtusCEO |
| Discord | https://discord.gg/VirtusProtocol |
| Contact | mailto:VIRTUSplatform@proton.me |
2. Dashboard
2.1 Overview
The Dashboard is the central interface for monitoring VIRTUS Protocol activity. It surfaces real-time protocol-wide metrics and individual portfolio data in a single view, giving users immediate visibility into protocol health and their own positions.
Access the Dashboard at app.virtus-protocol.com — no account or login required. Connect a wallet to view personal portfolio data.
2.2 Protocol Metrics
The Dashboard displays aggregate on-chain data across all VIRTUS pools and gauges:
| Metric | Description |
|---|---|
| Total Value Locked (TVL) | Combined USD value of all assets deposited across liquidity pools |
| Trading Volume | Cumulative swap volume across LP Swap and protocol pools |
| Fees Generated | Total trading fees accrued by the protocol's pools |
| Total veVRT | Aggregate veVRT voting power locked across all participants |
| Current Epoch | Active weekly voting epoch (Thursday 00:00 UTC – Wednesday 23:59 UTC) |
All data is sourced directly from on-chain state — no off-chain databases or proprietary APIs.
2.3 User Portfolio
When a wallet is connected, the Dashboard provides a personal summary of all active positions and rewards:
- Liquidity Positions — Active deposits across pools, showing current value, pool type (stable / volatile / concentrated), staking status, and accrued fees or emissions.
- veVRT Locks — All veNFT positions held by the connected wallet, including remaining lock duration, current voting power, and decay status.
- Voting Activity — Gauges voted on during the current epoch, weight allocations, and projected voting rewards (trading fees + bribes).
- Claimable Rewards — Pending rewards available for claim: trading fees (for unstaked LP positions or voters), VRT emissions (for staked positions), rebases (for veVRT holders), and external bribes (for voters).
- Locked Deposits — Positions with active lock periods, showing expiration dates and available actions. Locked deposits can be staked/unstaked if staking rewards are available, and owners can opt to use accrued fees or rewards as incentives for the pool where they originated.
- Points Balance — During the Points Program, accumulated Points from LP activity and Multichain Swapper usage, along with conversion eligibility status.
2.4 Weekly Epoch Cycle
The Dashboard reflects the protocol's weekly epoch cycle, which governs emission distribution and voting:
| Step | Description |
|---|---|
| Start Epoch | New epoch begins, previous votes are finalized |
| Distribute | VRT emissions are distributed to gauges based on vote results |
| Update Claimables | Reward balances are recalculated for voters and stakers |
| Checkpoint | On-chain state is checkpointed for accurate reward accounting |
These functions run automatically via keeper bots but can be manually triggered if needed. The Dashboard displays the current epoch phase and countdown to the next transition.
3. Swap
VIRTUS Protocol offers two swap engines, accessible from the Swap menu: LP Swap for on-chain trading through VIRTUS liquidity pools, and Multichain Swap for cross-chain token routing via integrated aggregators.
3.1 LP Swap
LP Swap executes trades directly through VIRTUS Protocol's native liquidity pools on Base. Orders are routed on-chain with no intermediary — the user signs a transaction, and the smart contract settles the swap atomically.
3.1.1 How It Works
- Select the input and output tokens.
- The router identifies the optimal path across available pools (stable, volatile, and concentrated).
- Review the quoted output amount, price impact, and fees.
- Sign and submit the transaction from your connected wallet.
- Tokens are swapped atomically in a single on-chain transaction.
3.1.2 Supported Pairs
LP Swap supports any token pair for which a liquidity pool exists on VIRTUS Protocol. This includes protocol-deployed Blue Fish Pools and any user-created pools. If no direct pair exists, the router may route through Multichain Swapper to complete the swap.
3.1.3 Trading Fees
Fees are set per pool and vary by pool type:
| Pool Type | Description | Default Fee |
|---|---|---|
| Stable | Correlated assets (e.g. USDC/USDT) | Lower default fee |
| Volatile | Uncorrelated assets (e.g. ETH/USDC), standard x*y=k curve | Higher default fee |
| Concentrated (CL) | Slipstream pools with custom price ranges | Varies per pool |
Fee mechanics:
- Default fees apply to all pools of a given type (stable or volatile) unless overridden.
- Custom pool fees completely replace the default fee for that specific pool — they do not add to it. For example, if the default volatile fee is 0.30% and a custom fee of 0.05% is set on a pool, that pool charges 0.05%.
- Setting a custom fee to 0 removes the override and returns the pool to the default fee.
Where trading fees go depends on whether LP tokens are staked:
| LP Status | Trading Fees Go To |
|---|---|
| Not staked (no gauge or not deposited) | 100% to LP holders, proportional to pool share — claimable anytime |
| Staked in a gauge | 100% to veVRT voters who voted for that pool's gauge — LP stakers receive VRT emissions instead |
3.1.4 Slippage & Price Impact
- Slippage tolerance can be configured before submitting a swap. If the final execution price deviates beyond the tolerance, the transaction reverts.
- Price impact is displayed before confirmation, reflecting how much the swap moves the pool price relative to the quoted rate. Larger trades in lower-liquidity pools produce higher price impact.
3.2 Multichain Swap
The Multichain Swap is a cross-chain token aggregator integrated directly into the VIRTUS interface. It routes swaps across multiple blockchains through external bridge and DEX aggregation providers.
3.2.1 How It Works
- Select the source chain and token.
- Select the destination chain and token.
- The aggregator queries available routes across integrated providers and returns the best quote.
- Review the output amount, route path, estimated time, and fees.
- Sign and submit the transaction from your connected wallet.
- The swap is executed across chains — bridging and swapping are handled automatically by the routing provider.
3.2.2 Supported Chains & Tokens
The Multichain Swap supports tokens and chains available through its integrated routing providers. The set of supported networks and assets expands as providers add coverage. Any token with sufficient liquidity on a supported chain can be routed.
3.2.3 Exchange Fee
The Multichain Swap applies an exchange fee on each executed swap. This fee is collected by the protocol. The fee percentage may be adjusted by the Protocol Administrator as required.
3.2.4 Integrated Providers
| Provider | Role |
|---|---|
| Rango Exchange | Cross-chain DEX and bridge aggregator — routes swaps across chains with optimal path selection |
| LiFi | Multi-bridge, multi-DEX aggregation protocol — provides additional routing options and liquidity sources |
Both providers are external services. VIRTUS Protocol does not custody funds during cross-chain swaps — all execution is handled by the respective provider's smart contracts. Users should review provider-specific risks including bridge security, finality times, and potential slippage on destination chains.
3.2.5 Multichain Swap vs LP Swap
| LP Swap | Multichain Swap | |
|---|---|---|
| Scope | Base only | Cross-chain |
| Execution | VIRTUS pool contracts | External aggregators (Rango, LiFi) |
| Fee | Per-pool trading fee (to LPs or voters) | Multichain Swap fee |
| Settlement | Atomic, single transaction | May involve bridging delays |
| Custody | Non-custodial (VIRTUS contracts) | Non-custodial (provider contracts) |
| Points | Yes (during Points Program) | Yes (during Points Program) |
3.3 Wallet Integration
Both swap engines require a connected wallet to sign and submit transactions. Supported wallet connections include:
- WalletConnect
- Coinbase Wallet
- Gnosis Safe
VIRTUS Protocol never has access to private keys, seed phrases, or wallet passwords. All transactions are draft messages generated by the interface — the user signs and broadcasts them independently.
4. Pool
The Pool section of VIRTUS Protocol is where liquidity lives. It covers two functions accessible from the Pool menu: Liquidity (browse and manage existing pools) and Deposit (provide liquidity to a pool). Users can also create new pools for any token pair.
4.1 Liquidity
4.1.1 Pool Types
VIRTUS Protocol supports three pool types, each designed for different asset characteristics and LP strategies:
Stable Pools — For correlated assets that maintain similar prices (e.g. USDC/DAI). These pools use a curve optimized for tight price ranges, enabling low-slippage swaps between pegged or near-pegged assets. Lower default trading fees.
Volatile Pools — For uncorrelated assets with varying prices (e.g. ETH/USDC). These pools use the standard constant product formula (x * y = k), suitable for general-purpose trading pairs. Higher default trading fees.
Concentrated Liquidity (Slipstream CL) — Allows liquidity providers to concentrate capital within specific price ranges rather than across the full price curve. This significantly improves capital efficiency — LPs earn more fees per dollar deposited when the trading price stays within their selected range. Fees vary per pool.
4.1.2 Blue Fish Pools
Blue Fish Pools are VIRTUS Protocol's flagship liquidity pools, designed around highly liquid, low-volatility and volatility asset pairs to attract long-term capital and generate sustainable trading volume.
| Pool | Type | Trading Fee |
|---|---|---|
| WETH / USDC | Concentrated | 0.037% |
| cbBTC / USDC | Concentrated | 0.0348% |
| WETH / cbBTC | Concentrated | 0.0337% |
These pools form the foundation for protocol volume, fee generation, and governance activation. They are configured with wide-range concentrated liquidity to balance capital efficiency with broad price coverage.
4.1.3 Fee Tiers
Trading fees are configurable at two levels:
Default fees are applied globally to all pools of a given type (stable or volatile) unless explicitly overridden.
Custom pool fees replace the default fee entirely for a specific pool. They do not stack on top of the default. Setting a custom fee to 0 removes the override and reverts the pool to the default fee.
Example: If the default volatile fee is 0.30% and a custom fee of 0.05% is set on a specific volatile pool, that pool charges 0.05% — not 0.35%.
4.1.4 Fee Routing
Where trading fees go depends on whether the LP position is staked in a gauge:
| Scenario | Trading Fees | LP Receives |
|---|---|---|
| LP tokens NOT staked | 100% to LP holders, proportional to pool share | Trading fees (claimable anytime) |
| LP tokens staked in gauge | 100% to veVRT voters who voted for that gauge | VRT emissions (instead of fees, claimable anytime) |
This is the core ve(3,3) trade-off: LPs choose between direct fee income (unstaked) or VRT emission rewards (staked), while voters earn the fees from pools they support.
4.1.5 Gauges & Emissions Routing
Each pool can have an associated gauge — a smart contract that distributes weekly VRT emissions to staked LP positions. Emission allocation is determined by veVRT voter weights:
- veVRT holders vote for gauges during each weekly epoch.
- Votes are weighted proportionally based on each voter's allocated weights across selected pools.
- At epoch end, VRT emissions are distributed to gauges in proportion to total votes received.
- Staked LPs in each gauge claim their share of emissions proportional to their liquidity contribution.
Only pools with whitelisted tokens can receive gauge incentives. The Governor address has exclusive permission to manage the token whitelist, preventing spam tokens from entering the voting system.
4.1.6 User-Created Pools
Anyone can deploy a new liquidity pool for any token pair through the Create Pool interface:
- Select two tokens for the pair.
- Choose the pool type:
- Basic AMM (Stable) — for correlated assets
- Basic AMM (Volatile) — for regular trading pairs, standard x * y = k
- Concentrated Liquidity — Slipstream CL with custom price ranges
- For volatile pools, enter one token amount — the other is auto-calculated based on the initial price set.
- Deploy the pool contract.
Pool creation is fully permissionless. Once a pool is created, it is immediately available for trading and liquidity provision. A gauge can be attached through governance to enable emission rewards for the pool.
The protocol also locks VRT into user-created pools using maximum voting power as a governance support mechanism, allowing ecosystem expansion without governance risk while maintaining controlled incentives.
4.2 Deposit
4.2.1 How to Provide Liquidity
- Navigate to Pool → Deposit or select a pool from the Liquidity page.
- Select the pool you want to deposit into.
- Enter the amount for one or both tokens (depending on pool type).
- For concentrated liquidity pools, set your desired price range.
- Review the position details and confirm the transaction.
- Sign the transaction from your connected wallet.
Once deposited, your LP position appears on the Dashboard with real-time tracking of value, accrued fees, and staking status.
4.2.2 Position Management
Staking — After depositing, you can stake your LP tokens in the pool's gauge (if available) to earn VRT emissions. Staking redirects trading fees to voters — you receive emissions instead.
Unstaking — LP tokens can be unstaked at any time to stop earning emissions and revert to direct fee accrual.
Adding Liquidity — Additional liquidity can be added to an existing position at any time, including locked positions.
Withdrawing — Remove part or all of your liquidity from a pool. Withdrawal returns both tokens proportional to your pool share at current prices. Locked positions cannot be withdrawn until the lock expires.
Price Range Adjustments — For concentrated liquidity positions, the price range is fixed at deposit time. To change the range, withdraw and re-deposit with a new range. Locked deposits do not allow price range changes.
4.2.3 Locked Positions (VRT → veVRT)
Locking is the mechanism for earning voting power and governance rights. Users lock VRT tokens to receive veVRT — a vote-escrow NFT that represents locked VRT with governance weight.
Create Lock — Lock VRT → veVRT. Longer lock periods grant more voting power, up to a maximum of 4 years.
Manage Locks — From the Dashboard, users can view and manage all their locked positions:
- Add VRT to an existing locked position to increase voting power.
- Extend lock duration to maintain or increase voting power as time passes.
- Withdrawals are only available after the lock period has ended.
- Voting power decreases linearly as the lock period expires.
Vote on Gauges — Once VRT is locked as veVRT, the holder can vote on pool gauges to direct weekly VRT emissions. Voting Pools shows where votes are currently allocated. To receive trading fees and bribes, veVRT holders must actively vote — non-voters receive only rebases (anti-dilution rewards).
4.2.4 Claiming Rewards
Rewards accrue continuously and can be claimed at any time:
| Reward Type | Who Earns | Condition |
|---|---|---|
| Trading Fees | LP holders (unstaked) | Proportional to pool share |
| VRT Emissions | LP stakers (staked in gauge) | Proportional to staked liquidity |
| Rebases | veVRT holders | Automatic anti-dilution, no action required |
| Bribes | veVRT voters | Proportional to voting weight on the gauge |
If a referral or beneficiary share is set on a position, the respective share of fees or staking rewards is calculated and redirected at claim time automatically.
4.3 Protocol Fee Structure
The protocol charges no automatic fee cut from trading. This is by design under the ve(3,3) model.
| Revenue Source | Destination |
|---|---|
| Trading fees (unstaked pools) | 100% to LP holders |
| Trading fees (staked pools) | 100% to veVRT voters for that gauge |
| VRT emissions | To staked LPs via gauges, up to 5% to team via Minter |
| Protocol treasury | No automatic cut — team earns by creating veNFTs, voting on gauges, and receiving fees and bribes like any other participant |
Team emissions are configurable: the Minter can allocate up to 5% of weekly emissions to the team address via setTeamRate.
5. Governance
VIRTUS Protocol's governance is built on the ve(3,3) model: lock VRT to receive veVRT voting power, vote on pool gauges to direct weekly emissions, and earn rewards for active participation. Governance is accessed through two sub-pages — Lock and Vote — plus supporting systems including the VRT Exchange, Token Whitelist, and Weekly Tasks.
5.1 Lock
5.1.1 Create Lock
Locking is the entry point to governance. Users lock VRT tokens to receive veVRT — an ERC-721 NFT representing locked VRT with voting power.
- Navigate to Governance → Lock.
- Enter the amount of VRT to lock.
- Select the lock duration.
- Confirm and submit the transaction.
- Receive a veVRT NFT in your wallet.
Lock duration: Minimum 1 week (1 epoch). During the Points Program, the minimum lock period is 3 months. Maximum lock is 4 years.
Longer lock = more voting power. A 4-year lock grants maximum voting power per VRT locked. Voting power decreases linearly as the remaining lock duration shortens.
5.1.2 Manage Your Locks
From the Lock page, users can view and manage all locked positions:
Add VRT — Increase the VRT amount in an existing lock to boost voting power. Available at any time during the lock period.
Extend Duration — Extend the lock period to maintain or increase voting power as time passes. The lock can be extended up to the 4-year maximum.
Withdraw — Available only after the lock period has ended. Partial or full withdrawal of VRT is possible once the lock expires.
Transfer — veVRT NFTs can be transferred to other wallets as standard ERC-721 tokens.
5.1.3 Voting Power Decay
Voting power is not static. It decays linearly from the moment of locking:
• A 4-year lock starts at maximum voting power and declines to zero over 4 years.
• A 1-year lock starts at 25% of maximum voting power and declines to zero over 1 year.
• To maintain voting power, users can extend their lock duration at any time.
This design rewards long-term commitment and ensures that governance influence reflects ongoing alignment with the protocol.
5.2 Vote
5.2.1 How Voting Works
Once VRT is locked as veVRT, holders can vote on pool gauges to determine how weekly VRT emissions are distributed across liquidity pools. Voters earn rewards in return — trading fees from voted pools plus any external bribes deposited for those gauges.
- Navigate to Governance → Vote.
- Select one or more pools from the available gauge list.
- Set relative weights for each selected pool. Voting power is distributed proportionally based on the weights you assign.
- Confirm and submit your vote.
Votes are active for the current weekly epoch (Thursday 00:00 UTC – Wednesday 23:59 UTC). At epoch end, emissions are allocated to gauges in proportion to total votes received.
5.2.2 Voting Rewards
Voters earn two types of rewards for each gauge they vote on:
Trading Fees — When LP tokens are staked in a gauge, 100% of that pool's trading fees are redirected to the veVRT voters who voted for that gauge. Fees are distributed weekly, proportional to each voter's share of total votes on that gauge.
External Bribes — Anyone can deposit tokens into a gauge to attract votes. Projects and protocols use bribes to direct VRT emissions toward their pools. Bribe rewards are distributed proportionally to voters on that gauge.
Example: If you control 10% of all votes for Pool X, you receive 10% of Pool X's weekly trading fees plus 10% of any bribes deposited for Pool X.
5.2.3 What If You Don't Vote?
veVRT holders who do not vote receive rebases only — anti-dilution rewards in VRT that protect voting power from being diluted by new emissions. Rebases are automatic and require no action, but they carry no trading fees or bribe income. To earn trading fees and bribes, you must actively vote.
5.2.4 Voting Pools
The Voting Pools view shows all pools where your votes are currently allocated, including your weight distribution, projected rewards, and epoch status.
5.3 VRT Exchange
The VRT Exchange allows users to acquire veVRT directly by exchanging tokens — offering better rates for longer commitment periods.
5.3.1 How It Works
- Enter the amount to exchange.
- Select a commitment period — longer periods unlock better rates.
- VRT is converted to veVRT with corresponding voting power.
- Participate in governance: vote for gauges and earn rewards.
5.3.2 Pricing by Lock Duration
| Commitment Period | Price per VRT |
|---|---|
| 4 years (maximum) | $0.0100 |
| 1 year | $0.0400 |
| 3 months (minimum) | $0.0700 |
Pricing scales linearly between these reference points. Longer commitment = lower exchange rate to VRT, rewarding participants who align with the protocol long-term.
5.3.3 Key Details
• Accepted assets: all types of tokens, converted to USDC via LP Swap or Multichain Swap.
• veVRT received represents locked VRT that cannot be transferred until the commitment period ends.
• Voting power decreases linearly as time passes.
5.4 Bribes & External Incentives
Bribes are a core mechanism for aligning external protocols with VIRTUS governance. Any participant — projects, DAOs, or individual users — can deposit tokens as incentives to attract veVRT votes toward specific pool gauges.
5.4.1 How Bribes Work
- A project deposits tokens (any whitelisted asset) into a gauge as a bribe.
- veVRT voters see available bribes when selecting gauges to vote on.
- Voters who allocate weight to that gauge earn a proportional share of the deposited bribe.
- Bribes are distributed weekly alongside trading fees at epoch end.
Bribes create a competitive market for emissions: pools that generate more value (fees, volume, or strategic importance) attract more bribe capital, which attracts more votes, which directs more emissions — reinforcing a flywheel of liquidity and activity.
5.5 Emission Schedule
Upon completion of the Points Program, the Protocol Administrator manually initiates VRT token weekly emission. Emissions then follow a predefined schedule with variable weekly minting governed by fixed coefficients — not subject to manual adjustment.
5.5.1 Phases
| Phase | Period | Weekly Emission | Coefficient |
|---|---|---|---|
| Points Program | Weeks 1–24 | 0 VRT | — |
| Initiation | Weeks 25–40 | Starting at 10,000,000 VRT, increasing weekly | 1.03 per week |
| Elevation | Weeks 41–50 | Stabilized | 1.0 per week |
| Perfection | Weeks 51–∞ | Gradually decreasing | 0.99 per week |
The emission pool is not limited to a fixed period and continues throughout the full lifecycle of the protocol.
5.5.2 Emission Distribution
| Recipient | Share |
|---|---|
| Liquidity Providers (staked in gauges) | ~95% of weekly emissions |
| Team (via Minter setTeamRate) | Up to 5% of weekly emissions |
5.5.3 Design Principles
• Early-stage emissions are intentionally conservative to limit sell pressure during low-liquidity phases.
• Emissions increase as protocol usage, liquidity, and fee revenue expand.
• Emissions peak in the mid-cycle and then progressively decline, reinforcing scarcity and long-term alignment.
• VRT emission is unlimited in duration and follows predefined emission coefficients rather than a fixed supply cap. This ensures predictability, transparency, and alignment between token supply growth and real protocol activity.
5.6 Token Whitelist
The Token Whitelist controls which tokens can participate in gauge-incentivized pools.
• Only whitelisted tokens can be used in pools that receive voting incentives and VRT emissions.
• This prevents spam tokens from entering the voting system and diluting governance quality.
• The Governor address has exclusive permission to add or remove tokens from the whitelist.
Non-whitelisted tokens can still be used in pools, but those pools cannot receive gauge emissions or be voted on.
5.7 Weekly Tasks
Protocol maintenance runs on a weekly cycle, aligned with the voting epoch. These functions execute automatically via keeper bots but can be manually triggered if needed.
| Step | Order | Description |
|---|---|---|
| Start Epoch | 1 | Begins a new epoch; finalizes previous votes |
| Distribute | 2 | Distributes VRT emissions to gauges based on vote results |
| Update Claimables | 3 | Recalculates reward balances for voters and stakers |
| Checkpoint | 4 | Checkpoints on-chain state for accurate reward accounting |
The sequence must execute in order: Start Epoch → Distribute → Update Claimables → Checkpoint.
5.8 Emergency Council
The Emergency Council is a multisig contract with limited powers designed to protect the protocol under exceptional circumstances.
| Property | Detail |
|---|---|
| Contract | TBA |
| Type | Multisig |
| Scope | Emergency actions only — cannot modify core protocol parameters, emission schedules, or user funds |
The Emergency Council exists as a safety mechanism during the protocol's early growth phase. Its powers are intentionally constrained and subject to progressive decentralization as governance matures.
5.9 Anti-Capture Mechanisms
VIRTUS Protocol employs multiple safeguards to prevent early governance capture:
Protocol-Owned Voting Power — The protocol locks VRT with maximum voting power across all pools, ensuring that reward allocation remains filtered and conservative during early stages. This dilutes the influence of any single large participant.
Progressive Governance Introduction — Governance power is introduced gradually and defensively, remaining capital-backed and protocol-stabilized. Users who seek greater influence must exchange their tokens to VRT and lock VRT themselves, creating organic demand.
Predefined Emission Coefficients — Emission rates follow hardcoded coefficients (1.03 → 1.0 → 0.99) that cannot be altered after deployment. This removes discretionary control over supply growth and ensures emissions remain predictable and transparent.
Result — Governance cannot be easily captured, rewards remain economically justified, and VRT price stability is preserved during the critical growth phase.
6. Points
The Points Program is VIRTUS Protocol's early participation mechanism. It runs for 6 months from protocol deployment and rewards users for real activity across Liquidity Pools and the Multichain Swapper. Points represent deferred protocol ownership — they convert to VRT under predefined rules after the program concludes.
During the Points Program, no VRT emissions occur (0 VRT per week). Weekly emission begins only after the program ends.
6.1 How Points Are Earned
Points are earned through two channels:
6.1.1 Liquidity Pool Points
Liquidity Providers earn Points for maintaining capital in pools over time. Points are calculated using the following formula:
Points = LP Position × Liquidity Pool Volume × Epoch Multiplier
The Epoch Multiplier rewards longer-held positions:
| Epochs Active | Multiplier |
|---|---|
| Less than 1 epoch | 0 |
| 1 epoch | 0.0001 |
| 2 epochs | 0.0002 |
| 3 epochs | 0.0003 |
| 4 epochs | 0.0004 |
| More than 4 epochs | 0.0005 |
This model rewards larger and longer-held positions, participation in higher-activity pools, and long-term liquidity commitment rather than short-term farming.
Example:
An LP with a 10,000 USDC position in a pool with 50,000 USDC volume, active for 12 epochs (multiplier: 0.0005):
Points = 10,000 × 50,000 × 0.0005 = 250,000 Points
6.1.2 Multichain Swapper Points
Points are credited to users based on the USDC-equivalent value of each executed swap.
Fixed accrual rate: 1 USDC of swap value = 1 Point
• A user swaps 4,000 USDC → ETH: the user receives 4,000 Points.
• A user swaps Token X → Token Y: the user receives Points equal to the USDC value of Token X at the time of execution.
6.2 VRT Exchange via Points
During the Points Program, early participants can acquire VRT through the VRT Exchange page. Users exchange any supported token (converted to USDC via LP Swap or Multichain Swap) and receive veVRT NFTs with a direct lock.
Rate of VRT by Lock Duration
| Lock Period | VRT Price |
|---|---|
| 4 years (maximum lock) | USDC 0.01 per VRT |
| 1 year | USDC 0.04 per VRT |
| 3 months (minimum during Points Program) | USDC 0.07 per VRT |
Shorter lock periods result in a higher rate per VRT. Rating scales linearly between reference points, rewarding participants who commit for longer durations with a lower exchange rate to VRT.
Example
A user exchanges 100 USDC with a 4-year lock:
• 100 USDC = 10,000 VRT at USDC 0.01/VRT
• 10,000 VRT locked for 4 years → 9,980 veVRT
• Distributed as 6 veVRT NFTs, each representing 1,663.33 veVRT
• NFTs unlock linearly over 6 months after a 1-month cliff
6.3 Vesting Terms
Vesting rules differ by participant type to ensure fairness and alignment with actual contribution to the protocol.
VRT Exchange Participants
| Parameter | Value |
|---|---|
| Cliff | 1 month |
| Vesting | 6 months, linear, in equal parts |
| Distribution | 6 veVRT NFTs, unlocking monthly after cliff |
Unlock schedule example (for a purchase made at program start):
| NFT | Unlocks After |
|---|---|
| 1st | 3 months |
| 2nd | 4 months |
| 3rd | 5 months |
| 4th | 6 months |
| 5th | 7 months |
| 6th | 8 months |
Liquidity Providers
| Parameter | Value |
|---|---|
| Cliff | 6 months |
| Vesting | 12 months, linear, in equal parts |
LP vesting reflects the longer-term nature of liquidity provision and ensures sustained capital commitment.
6.4 Points-to-VRT Conversion
After the Points Program concludes, Points convert to VRT. Conversion rules differ by participant type.
VRT Exchange Participants
Fixed conversion rate:
1 Point = 1 VRT
Example:
250,000 Points → 250,000 VRT
This provides full transparency and certainty for early capital contributors, subject to the predefined vesting schedule.
Liquidity Providers
Conversion is calculated proportionally, based on each participant's share of total issued Points relative to the remaining conversion allocation.
VRT = (User Points / Total Issued VRT) × (Emission Pool − VRT Exchanged)
| Parameter | Example Value |
|---|---|
| User Points | 250,000 |
| Total Emission Pool | 100,000,000 |
| VRT Exchanged | 20,000,000 |
VRT = 250,000 / (100,000,000 − 20,000,000) × (100,000,000 − 20,000,000) = 250,000 VRT
This structure ensures that Liquidity Providers receive ownership proportional to their relative contribution, without diluting early investors or exceeding the allocated conversion pool.
Adjustment Clause
The final Points-to-VRT conversion parameters may be reviewed and fine-tuned based on actual protocol usage and volume, sustained liquidity depth, and fee generation performance. Any adjustments are intended to preserve economic fairness and long-term sustainability, not to retroactively disadvantage participants.
6.5 Use of Funds
All USDC raised through the VRT Exchange during the Points Program is received into the Operations Wallet. Funds are allocated exclusively to:
• Deepening protocol liquidity
• Strengthening trading depth
• Reducing market volatility
6.6 Points Program Initial Allocation
| Allocation | Amount | Wallet |
|---|---|---|
| Points Program supply | 30,000,000 VRT | Team Wallet |
Points are minted at protocol deployment and distributed to participants based on activity throughout the 6-month program duration. No additional VRT are minted after the initial allocation.
6.7 What Happens After the Points Program
Upon completion of the Points Program:
- Points-to-VRT conversion is executed according to the rules above.
- Vesting schedules begin for all participants.
- The Protocol Administrator manually initiates weekly VRT emission.
- Vote & Lock governance becomes available (if activation conditions are met).
- The protocol transitions from the Points phase to the Initiation emission phase (Weeks 25–40, starting at 10,000,000 VRT/week with a 1.03 coefficient).
7. Tokenomics
This section defines the supply logic, distribution model, emission mechanics, revenue structure, and wallet architecture of the VIRTUS Protocol token system. The model is designed around no presale, no community token sale, controlled issuance, and transparent on-chain governance.
7.1 Token Overview
VRT (ERC-20)
| Property | Detail |
|---|---|
| Token Name | VIRTUS |
| Ticker | VRT |
| Standard | ERC-20 (with multichain support via bridges) |
| Chain | Base (Chain ID: 8453) |
| Contract | TBA |
| Maximum Supply | Unlimited |
| Supply Model | Two-phase minting |
veVRT (ERC-721)
| Property | Detail |
|---|---|
| Token Name | Vote-Escrowed VRT |
| Ticker | veVRT |
| Standard | ERC-721 (NFT) |
| Chain | Base (Chain ID: 8453) |
| Contract | TBA |
| Purpose | Governance voting power, emission direction, fee/bribe rewards |
| Created By | Locking VRT for a chosen duration (1 week – 4 years) |
veVRT is non-fungible — each lock position is represented as a unique NFT with its own lock amount, duration, and decaying voting power.
7.2 Supply Model
VRT uses a two-phase minting model. There are no private rounds, no public sales, and no fundraising allocations.
Phase 1: Genesis Mint
200,000,000 VRT minted at protocol deployment. Executed by the Deployment Wallet. The Deployment Wallet has no long-term custody or spending role.
Phase 2: Weekly Emission
Unlimited VRT supply minted gradually in accordance with the Emission Schedule. Minting is activity-based, tied to real protocol usage. Parameters are governed by predefined coefficients. If protocol activity declines, emission growth slows accordingly through the coefficient structure.
Weekly emission is started manually by the Protocol Administrator upon completion of the Points Program.
7.3 Initial Distribution (200M VRT)
| Allocation | Amount | Wallet | Action |
|---|---|---|---|
| Operations | 100,000,000 VRT | Operational Wallet | Supplied to Liquidity Pools, Covers Points Program incentives and funds external/internal contributors expanding protocol functionality, adoption, security, and integrations |
| Lock & Vote (Team) | 100,000,000 VRT | Team Wallet | Locked for maximum duration |
Additionally:
| Allocation | Amount | Wallet | Action |
|---|---|---|---|
| Points Program | 30,000,000 VRT | Team Wallet | Distributed to early participants based on LP and Swap activity |
| Initial Liquidity | 50,000,000 VRT | Smart Contract | Supplied to Liquidity Pools |
| Grants | 20,000,000 VRT | Operational Wallet | External/internal contributors expanding protocol functionality |
7.4 Emission Schedule
Emissions follow a predefined schedule with hardcoded coefficients. Once initiated, the coefficients cannot be altered.
| Phase | Period | Weekly Emission | Coefficient |
|---|---|---|---|
| Points Program | Weeks 1–24 | 0 VRT | — |
| Initiation | Weeks 25–40 | Starting at 10,000,000 VRT, increasing weekly | 1.03 per week |
| Elevation | Weeks 41–50 | Stabilized | 1.0 per week |
| Perfection | Weeks 51–∞ | Gradually decreasing | 0.99 per week |
The emission pool is not limited to a fixed period and continues throughout the full lifecycle of the protocol. VRT emission is unlimited in duration and follows predefined emission coefficients rather than a fixed supply cap.
7.5 VRT Fed (Democratic Monetary Policy)
The VRT Fed is a future governance mechanism that introduces democratic control over emission parameters. It activates approximately at epoch 100–110, when weekly emission reaches ~9,000,000 VRT per week.
Once active, veVRT holders vote on whether to increase, decrease, or maintain the weekly emission rate. This transitions monetary policy from a fixed coefficient model to a community-governed model, where supply growth is determined by the collective decision of locked token holders.
7.6 Revenue
VIRTUS Protocol revenues ensure transparency, security, and auditability.
Use of Protocol Revenue
Protocol revenue is used exclusively to:
• Maintain protocol operability
• Fund ongoing development and improvements
• Support advertising and strategic collaborations
• Cover salaries for core team members
Protocol revenue may also be used for manual VRT buyback operations, subject to internal controls and performance considerations.
7.7 Protocol Fee Structure
The protocol charges no automatic fee cut from trading. This is by design under the ve(3,3) model.
| Source | Where It Goes |
|---|---|
| Trading fees (LP unstaked) | 100% to LP holders |
| Trading fees (LP staked in gauge) | 100% to veVRT voters who voted for that gauge |
| Weekly VRT emissions | ~95% to staked LPs via gauges, up to 5% to team via Minter |
| Multichain Swapper fees | Operation needs |
| VRT Exchange proceeds | Operation needs |
To earn as protocol, the team creates veNFTs, votes on gauges, and receives fees and bribes like any other participant. Team emissions are configurable via the Minter's setTeamRate (up to 5% of weekly emissions).
8. Roadmap
VIRTUS Protocol follows a phased deployment strategy designed to build liquidity depth, establish price stability, and activate governance progressively — each phase unlocking the next only when on-chain conditions support it.
8.1 Phase 1: Liquidity Pool Launch & Soft TGE
The protocol launches its core liquidity infrastructure together with a Soft Token Generation Event. The Soft TGE establishes operational stability and incentive alignment without introducing public market pressure or speculative distribution.
Actions:
• 200,000,000 VRT minted to the Operations Wallet to support protocol-owned liquidity, infrastructure costs, ecosystem growth, and strategic reserves.
Structure:
• 100,000,000 VRT minted to the Team Wallet, allocated exclusively for Lock & Vote purposes.
• 30,000,000 Points minted to dedicate the Points Program.
• 50,000,000 VRT supplied to initial Liquidity Pools.
• 20,000,000 VRT allocated to Grants.
No public VRT sale, airdrop, or unrestricted distribution occurs at this stage. All remaining unlimited VRT supply is reserved for controlled, long-term emission governed by the emission schedule.
8.2 Phase 2: Points Program
The Points Program starts upon protocol deployment and runs for 6 months. During this period, users earn Points for activity on the Multichain Swapper, LP Swap, and Liquidity Pools.
Initial State:
• Vote and Lock pages are visible in the interface but marked "Blurred" and remain inactive.
• The VRT Exchange page is introduced for early participants to acquire veVRT using any supported tokens (converted to USDC) with a direct lock mechanism.
Active During This Phase:
• LP Points accrual (Position × Volume × Epoch Multiplier)
• Multichain Swapper Points accrual (1 USDC = 1 Point)
• VRT Exchange (tiered pricing: USDC 0.01 at 4-year lock → USDC 0.07 at 3-month lock)
• Blue Fish Pools operational (WETH/USDC, cbBTC/USDC, WETH/cbBTC)
Weekly VRT emission: 0 VRT throughout the entire Points Program (Weeks 1–24).
8.3 Phase 3: Emission Start
Upon completion of the Points Program, the Protocol Administrator manually initiates weekly VRT emission. The protocol transitions to the Initiation emission phase.
Actions:
• Points-to-VRT conversion executed for all participants.
• Vesting schedules begin (VRT Exchange: 1-month cliff / 6-month linear; LPs: 6-month cliff / 12-month linear).
• Weekly emission starts at 10,000,000 VRT/week with a 1.03 coefficient, increasing each week.
• ~95% of emissions directed to Liquidity Providers staked in gauges, up to 5% to team via Minter.
8.4 Phase 4: Vote & Lock Activation
Governance becomes fully operational. Vote and Lock pages transition from "Blurred" to active.
Actions:
• veVRT holders can vote on pool gauges to direct weekly emissions.
• Voters begin earning trading fees and external bribes from voted pools.
• Weekly epoch cycle fully active (Start Epoch → Distribute → Update Claimables → Checkpoint).
• Protocol locks its own VRT into all existing pools with maximum voting power as an anti-capture mechanism.
• VRT / USDC Governance Pool created (up to 10,000,000 VRT) as the primary pricing reference and governance liquidity anchor.
• Protocol extends governance support to user-created pools with maximum voting power.
8.5 Phase 5: DEX Listing
The listing of VRT on decentralized exchanges is executed as a strategic expansion step, not as an initial launch mechanism. The objective is to provide organic market access only after liquidity depth, pricing stability, and governance foundations are in place.
Listing Approach:
• Direct collaboration with selected Decentralized Exchanges (DEXs).
• Listings prioritize deep liquidity, capital-efficient pools, and transparent fee structures.
• Initial listings focused on VRT / USDC and other strategically aligned pairs.
Timing:
• After core liquidity pools are active and stable.
• After Vote & Lock governance is operational.
• After initial Points-to-VRT conversion rules are clearly defined.
• No rushed or hype-driven listings.
Objectives:
• Enable fair price discovery.
• Minimize volatility and early manipulation.
• Support long-term holders and liquidity providers.
8.6 Future: VRT Fed Activation
Approximately at epoch 100–110, when weekly emission reaches ~9,000,000 VRT/week, the VRT Fed activates. This transitions emission control from predefined coefficients to democratic governance — veVRT holders vote on whether to increase, decrease, or maintain the weekly emission rate.
This milestone marks the protocol's shift to fully community-governed monetary policy.
9. Security
VIRTUS Protocol inherits its smart contract architecture from Velodrome V2, one of the most battle-tested ve(3,3) DEX implementations in production. Security is enforced through professional auditing, immutable contracts, multisignature custody, and transparent on-chain operations.
9.1 Smart Contract Audits
Velodrome V2 (Core Protocol)
The core codebase was audited by Spearbit, a leading smart contract security firm, during February–March 2023.
| Severity | Found | Resolved |
|---|---|---|
| Critical | 1 | 1 (fixed) |
| High | 8 | 8 (all fixed) |
| Medium | 19 | 16 fixed, 3 acknowledged |
| Low | 37 | 25 fixed, 12 acknowledged |
| Informational | 54 | 24 fixed, 30 acknowledged |
| Total | 119 | — |
All critical and high severity issues were fully resolved prior to deployment. Acknowledged findings were reviewed and determined to present acceptable risk within the protocol's design parameters.
Aerodrome
Additional audits were completed for the Aerodrome codebase, from which VIRTUS Protocol also inherits components. These audits further validate the security of the underlying smart contract architecture.
Pool Launcher
The Pool Launcher module was audited by MixBytes. The audit took place between 12th September and 3rd October 2025.
• MixBytes Audit Report (https://github.com/mixbytes/audits_public/tree/master/Velodrome/Pool%20Launcher)
• Pool Launcher Codebase (https://github.com/velodrome-finance/pool-launcher)
• Contracts (https://github.com/velodrome-finance/pool-launcher/tree/develop/deployment-addresses)
9.2 Smart Contract Immutability
Core protocol smart contracts are deployed as immutable — once on-chain, the contract logic cannot be modified, upgraded, or replaced by any party, including the protocol team.
This means:
• No admin backdoors or upgrade proxies in core contracts.
• Emission coefficients (1.03 → 1.0 → 0.99) are hardcoded and cannot be altered after deployment.
• Pool logic, voting mechanics, and fee distribution operate autonomously without manual intervention.
• Users interact directly with verified, immutable code — not with changeable proxy contracts.
The protocol is fully permissionless. Anyone can interact with the deployed smart contracts directly, without relying on the VIRTUS interface.
9.3 Multisig Controls
All protocol wallets holding VRT or revenue use multisignature security to prevent single points of failure.
The Deployment Wallet executed the genesis mint only and retains no long-term custody or spending role.
Multisig wallets are operated via Gnosis Safe, requiring multiple independent signers to approve any transaction before execution. This protects against unauthorized access, compromised keys, and unilateral fund movements.
9.4 Emergency Council
The Emergency Council is a dedicated multisig contract with strictly limited powers, designed to protect the protocol under exceptional circumstances.
| Property | Detail |
|---|---|
| Contract | TBA |
| Type | Multisig |
| Scope | Emergency actions only |
The Emergency Council cannot modify core protocol parameters, emission schedules, or user funds. Its powers are intentionally constrained and subject to progressive decentralization as governance matures.
9.5 Non-Custodial Architecture
VIRTUS Protocol is entirely non-custodial. At no point does the protocol, the interface, or any team member have access to user funds.
• The interface generates draft transaction messages — users sign and broadcast them from their own wallets.
• Private keys, seed phrases, and wallet passwords are never collected, stored, or transmitted.
• All swaps, deposits, locks, and votes are executed by the user directly against on-chain smart contracts.
• Cross-chain swaps via the Multichain Swapper are handled by external provider contracts (Rango, LiFi) — VIRTUS does not custody funds during cross-chain execution.
9.6 On-Chain Transparency
All protocol operations are fully verifiable on-chain:
• Token minting, emission distribution, and fee collection are recorded on the Base blockchain.
• Wallet balances, lock positions, voting weights, and reward claims are publicly visible.
• Smart contract source code is verified and readable on block explorers.
• No off-chain databases or proprietary APIs are involved in core protocol logic.
9.7 Risk Disclosures
Despite security measures, users should be aware of inherent risks in decentralized protocols:
Smart Contract Risk — While audited, no audit guarantees the absence of all vulnerabilities. Undiscovered bugs could result in loss of funds.
Blockchain Risk — Base network congestion, outages, or consensus failures could temporarily prevent transactions or cause delays.
Bridge Risk — Cross-chain swaps via Multichain Swapper rely on external bridge infrastructure (Rango, LiFi). Bridge exploits or failures are outside VIRTUS Protocol's control.
Economic Risk — Token prices are volatile. VRT value may fluctuate significantly. Liquidity positions are subject to impermanent loss. There are no guarantees of returns.
Governance Risk — veVRT voting power concentration could influence emission distribution. Anti-capture mechanisms mitigate but do not eliminate this risk.
Regulatory Risk — The legal and regulatory environment for DeFi protocols is evolving. Changes in law or enforcement actions could affect protocol access or operations in certain jurisdictions.
Cryptographic Risk — Advances in cryptography, including quantum computing, could theoretically compromise the elliptic curve cryptography underpinning blockchain security. This is a long-term, industry-wide risk.
Users are solely responsible for conducting their own due diligence and assessing whether participation in the protocol is appropriate for their circumstances.
10. Legal
VIRTUS Protocol operates under a comprehensive legal framework designed to protect users, maintain regulatory compliance, and clearly define the rights and obligations of all parties. The following subsections summarize the core legal documents governing access to and use of the Protocol.
Full legal documents are available at https://app.virtus-protocol.com and within the documentation portal.
10.1 Legal Disclaimer
The Legal Disclaimer is the first document users encounter when accessing the VIRTUS Protocol interface. By using the Website and clicking past the Legal Disclaimer page, users confirm acceptance of the Legal Disclaimer, Privacy Policy, and Terms of Use.
10.1.1 Scope and Definitions
The Legal Disclaimer governs access to and use of https://app.virtus-protocol.com and any website mirrors. All products, features, interfaces, smart contracts, documentation, and tools made available through the Website are collectively referred to as the "Services."
The agreement is entered into between the Website user ("You") and the VIRTUS Protocol operators (the "Operator").
10.1.2 Non-Custodial Nature
VIRTUS Protocol is a non-custodial decentralized protocol. The Operator:
• Does not hold, control, manage, or custody user funds or digital assets.
• Does not have access to users' private keys or wallets.
• Does not execute trades on behalf of users.
• Does not operate or manage any liquidity pools on the Protocol.
All interactions with the Services are executed directly by users via self-custodied wallets on public blockchain networks.
10.1.3 No Financial Advice
Nothing on the Website or within the Services constitutes investment advice, financial advice, legal advice, tax advice, or a recommendation to acquire, hold, or dispose of any digital asset. The Services do not constitute an offer or solicitation of securities, financial instruments, or regulated products within the meaning of Regulation (EU) 2023/1114 (Markets in Crypto-Assets Regulation — MiCA) or any other applicable law.
Users are solely responsible for assessing the merits and risks of any activity and should consult their own legal, financial, tax, or other professional advisers.
10.1.4 Protocol and Interface Distinction
The Website and Services are distinct from the Protocol and represent one — but not the exclusive — means of accessing the Protocol. The Protocol itself consists of self-executing smart contracts deployed on public blockchains such as Ethereum and Layer 2 networks. No party can control or operate the immutable smart contracts that comprise the core Protocol functionality.
When using the Services, users acknowledge that:
• They are not buying or selling digital assets from the Operator.
• Trading fees are distributed to voters and/or liquidity providers in accordance with the Protocol's rules.
• All liquidity providers are independent third parties.
10.1.5 User Representations and Warranties
By accessing the Services, users represent and warrant that they:
• Are of legal age to form a binding contract.
• Have not been previously suspended or removed from using the Services.
• Have full power and authority to enter into the agreement.
• Will fully comply with all applicable laws and regulations.
• Will not use the Services to conduct, promote, or facilitate any illegal, unlawful, or prohibited activity.
If accessing on behalf of a legal entity, the user further represents that the entity is duly organized and validly existing, and the user is duly authorized to act on its behalf.
10.1.6 Integrated Partners
By using the Website, users also agree to comply with the requirements of VIRTUS Protocol's integrated partners:
• Aerodrome Finance — https://aerodrome.finance/legal
• Rango Exchange — https://docs.rango.exchange/terms-of-use
• LiFi — https://li.fi/legal/privacy-policy/
10.1.7 Usage Restrictions
The Services are not available to users residing in, incorporated in, or otherwise subject to the jurisdiction of Restricted Territories, including but not limited to:
Afghanistan, Abkhazia, Angola, Belarus, Bosnia and Herzegovina, Burundi, Central African Republic, China, Congo (Republic of the Congo), Crimea and Sevastopol, Cuba, Democratic Republic of Congo, Ethiopia, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Ivory Coast (Côte d'Ivoire), Lebanon, Liberia, Libya, Mali, Moldova, Montenegro, Myanmar (Burma), Nicaragua, Niger, North Korea, Northern Cyprus, Russian Federation, Serbia, Somalia, Somaliland, South Ossetia, South Sudan, Sudan, Syria, Tunisia, Turkey, Ukraine (Donetsk and Luhansk regions), United States, Venezuela, Yemen, Zimbabwe.
This list also includes any jurisdiction subject to sanctions, embargoes, or restrictive measures administered or enforced by the Office of Foreign Assets Control (OFAC) or other applicable governmental authorities.
Users must be 18 years of age or older and must not be a Prohibited Person — any individual or entity listed on sanctions lists maintained by the U.S., EU, UK, or UN, or located in, resident in, or organized under the laws of any Prohibited Jurisdiction.
10.1.8 Who May Use the Services
The Operator may use technical and compliance measures, including IP-based geofencing, to enforce geographic restrictions. Additional information or documentation may be required where applicable law demands it, or where there are reasonable grounds to believe a wallet is being used for money laundering or other illegal activity.
10.1.9 Wallet Integration
To access the Services, users must use non-custodial wallet software that enables interaction with public blockchain networks. The relationship with any wallet provider is governed solely by that provider's terms of service. The Operator has no custody or control over wallet contents.
Supported wallet integrations include:
• WalletConnect — Privacy Policy
• Coinbase Wallet — Legal Agreements
• Gnosis Safe — Privacy Policy
10.1.10 Investment Risks
Investment in cryptocurrencies involves a high degree of risk and may result in the partial or total loss of funds. Digital asset prices are highly volatile. Users are solely responsible for understanding all risks and conducting their own due diligence.
The Protocol consists of immutable smart contracts that the Operator does not control. Liquidity pools are permissionless and may be created by third parties. When interacting with tokens on the Protocol, users are interacting with and relying upon independent third parties.
10.1.11 No Warranties
The Website and Services are provided on an "as is" and "as available" basis, without warranties of any kind. Website functionality is not guaranteed and may be suspended, limited, or disabled at any time without prior notice.
All trades or transactions submitted through the Services are unsolicited and initiated solely by the user. The Operator does not perform any suitability, appropriateness, or risk assessment of any transaction.
10.1.12 Security
Security audits do not eliminate all risks. The Services are strictly non-custodial — the Operator does not at any time have custody, possession, or control over user digital assets. Users are solely responsible for safeguarding cryptographic private keys, seed phrases, and credentials.
10.1.13 Limitation of Liability
To the fullest extent permitted by law, the Operator will not be liable for financial losses, loss of use, data, business, or profits, or indirect, special, consequential, exemplary, punitive, or any other damages arising out of or relating to the Services.
The Operator's cumulative total liability for any action arising out of use of the Services is capped at $100.00 USD.
Users agree to defend, indemnify, and hold harmless the Operator and its affiliates from and against any claims, liabilities, damages, or fees arising out of violation of the Terms or use of the Services.
10.1.14 Tax Obligations
Users are solely responsible for determining what taxes apply to their cryptocurrency holdings, transactions, or activities. The Operator is not responsible for determining, calculating, reporting, withholding, or remitting any applicable taxes.
10.1.15 Dispute Resolution and Arbitration
Any dispute arising out of or relating to the Services shall be resolved through binding arbitration administered by Judicial Arbitration and Mediation Services (JAMS) in accordance with its Comprehensive Arbitration Rules and Procedures.
Users agree to arbitrate solely on an individual basis. Class arbitration, class actions, collective actions, and representative proceedings are not permitted.
10.1.16 Prohibited Activities
Users must not engage in intellectual property infringement, cyberattacks, fraud and misrepresentation, market manipulation (including rug pulls, pump and dump, wash trading), securities and derivatives violations, sale of stolen property, data mining or scraping, or any other unlawful conduct.
10.1.17 Third-Party Services
The Website may contain content or services provided by third parties. The Operator does not control, endorse, or adopt any third-party content and assumes no responsibility for such content.
10.1.18 Intellectual Property
The Website and its contents are owned by the Operator and protected by intellectual property laws. Users are granted a limited, revocable, and nonexclusive right to access and use the Website in accordance with the Terms.
10.1.19 Changes
The Operator may revise the Terms of Use at any time. All changes are effective immediately when posted. Continued use of the Website following changes constitutes acceptance of the revised terms.
10.1.20 Contact
For questions or concerns regarding the Legal Disclaimer:
Email: VIRTUSplatform@proton.me
11. Resources
Stay connected with the VirtUs community and ecosystem across all platforms:
App: https://app.virtus-protocol.com
Telegram Bot: https://t.me/VirtusProtocol_bot
X (Twitter): https://x.com/VirtusCEO
Discord: Virtus Protocol Discord