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What are Varla Gems?

Varla Gems are off-chain points that track your contribution to the Varla ecosystem. At TGE (Token Generation Event), Gems convert 1:1 to VRLA tokens from the community allocation (30% of total supply).

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How Gems Are Earned

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1. Lending Gems (40% of pool)

Earn Gems by supplying liquidity to VarlaPool. 
Daily Gems = (time_weighted_deposit / $1,000) × base_rate × duration_multiplier
Hold DurationMultiplier
< 7 days0.5×
7–30 days1.0×
30–90 days1.25×
> 90 days1.5×
Rules:
  • Balance snapshots taken at random times within each 24h period
  • Must maintain position for ≥24h to earn for that period
  • Withdrawals reset your duration multiplier to 1.0×
Time-weighted balances prevent deposit/withdraw loops. You earn based on how long you hold, not how many times you deposit.

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2. Borrowing Gems (30% of pool)

Earn Gems by borrowing against collateral. 
Daily Gems = (time_weighted_debt / $1,000) × base_rate + (interest_paid × 10)
Why interest paid matters: The protocol enforces a 1-minute minimum borrow duration, but real anti-gaming comes from the interest paid bonus. Paying 1inactualinterestismuchhardertofakethanborrowing1 in actual interest is much harder to fake than borrowing 1,000 for 1 minute. Rules:
  • Daily snapshots of outstanding debt
  • Interest paid earns 10× bonus multiplier
  • Full repayment doesn’t lose accumulated Gems

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3. Collateral Gems (20% of pool)

Earn Gems by depositing prediction market positions as collateral. 
Daily Gems = (time_weighted_collateral_value / $1,000) × base_rate × tier_multiplier
Collateral Risk TierLTVMultiplier
Conservative80%1.0×
Moderate65%1.25×
Risk50%1.5×
Why tier multipliers? Higher-risk collateral = more commitment = more Gems. Depositing positions in the Risk tier means you’re accepting lower borrowing power, demonstrating stronger conviction.

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4. Referral Gems (10% of pool)

Earn Gems when your referrals use the protocol. 
Referral Gems = referee_earned_gems × 0.10 (10%)
Rules:
  • One level only (no MLM chains)
  • Referee must earn minimum 100 Gems before referrer gets credit
  • Max 50 credited referrals per wallet

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Epoch System

Each week (epoch) distributes a fixed pool of 10 million Gems. Your share depends on your activity relative to all participants in that epoch.
ParameterValue
Total Gems300,000,000
Epochs30 weeks
Gems per epoch10,000,000
How distribution works: 
your_gems = (your_weighted_activity / total_weighted_activity) × 10,000,000
Week 1 distributes the same total Gems as Week 30. The difference is competition—if fewer users participate early, each active user earns a larger share of that epoch’s pool.
No early-adopter multipliers. Every epoch distributes the same total Gems. Your share depends only on your activity relative to others in that epoch.

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Anti-Gaming Design

The Gems system is designed to resist common exploit vectors:

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Wash Trading

Attack: Deposit/withdraw loops to inflate “volume”
Defense: Time-weighted balances only count sustained positions

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Borrow/Repay Loops

Attack: Borrow → repay → repeat to farm points
Defense: Interest paid (real cost) is the primary borrower metric

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Sybil Attacks

Attack: Split activity across many wallets
Defense: Per-wallet caps and diminishing returns at scale

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Last-Minute Farming

Attack: Rush in right before snapshot
Defense: Random snapshot times + duration multipliers

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Flash Loan Attacks

Attack: Inflate position for a single block
Defense: 24h minimum hold periods + protocol’s 1-minute borrow duration

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Claiming VRLA

1

Gems accumulation ends

After 30 weeks, no more Gems can be earned.
2

Claim window opens

150-day window to claim your VRLA.
3

Choose when to claim

Claimable % scales linearly from 0% to 100% over 150 days. Earlier claims receive less.
4

Unclaimed tokens

Any portion you don’t claim goes to the Treasury.

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Patience Vesting

Instead of traditional vesting, Varla uses patience vesting: your claimable percentage scales linearly with time.
Claim DayClaimable %1,000 Gems =
Day 10.67%6.67 $VRLA
Day 1510%100 $VRLA
Day 3020%200 $VRLA
Day 7550%500 $VRLA
Day 10066.7%667 $VRLA
Day 150100%1,000 $VRLA
Formula: 
claimable_percent = (days_since_claim_window_opened / 150) × 100%
claimable_tokens = gems_earned × claimable_percent
If you claim on Day 30, you receive only 20% of your earned tokens. The remaining 80% goes to the Treasury. This is irreversible.
Why patience vesting?
  • Rewards conviction: Long-term holders get full allocation
  • Reduces sell pressure: Early sellers take a penalty, not a bonus
  • Funds protocol development: Unclaimed tokens strengthen the Treasury
  • Simple and fair: No complex vesting schedules or unlock cliffs

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Timeline Summary

PhaseDurationWhat Happens
Earning30 weeksEarn Gems through protocol activity
SnapshotEnd of Week 30Final Gem balances recorded
Claim Window150 daysClaim VRLA with patience vesting
Window ClosesDay 150Unclaimed tokens go to Treasury

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FAQ

Q: Can I see my Gems balance? A: Yes, once the dashboard launches. Your activity is tracked from day one. Q: Do Gems expire? A: No. Gems earned during any epoch are permanent until the claim window closes. Q: What if I’m already using the protocol? A: All historical activity from protocol launch counts toward your Gems total. Q: Can I claim multiple times? A: Yes. You can claim portions at different times, but each claim is subject to the patience vesting rate at that moment. Q: What’s the optimal claim strategy? A: If you believe in Varla long-term, wait until Day 150 for 100%. If you need liquidity earlier, you accept a haircut.