Varla
OverviewWhat it is and why it matters.How It WorksLending against prediction markets, step by step.FeaturesLending, borrowing, leverage, and risk management.Supported MarketsPolymarket, Opinion, Kalshi, and more.
DocumentationProtocol docs, guides, and architecture.Smart ContractsPool, Collateral Manager, Oracle, Liquidation Engine.SDK ReferenceTypeScript SDK for protocol interactions.API ReferenceREST and GraphQL endpoints for market data.
BlogLatest news and announcements from Varla.FAQsFrequently asked questions about the protocol.Security & AuditsProtocol security, audits, and trust assumptions.Brand AssetsLogos, colors, and typography guidelines.
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Varla
Protocol
Overview What it is and why it matters.
How It Works Lending against prediction markets, step by step.
Features Lending, borrowing, leverage, and risk management.
Supported Markets Polymarket, Opinion, Kalshi, and more.
Developers
Documentation Protocol docs, guides, and architecture.
Smart Contracts Pool, Collateral Manager, Oracle, Liquidation Engine.
SDK Reference TypeScript SDK for protocol interactions.
API Reference REST and GraphQL endpoints for market data.
Resources
Blog Latest news and announcements from Varla.
FAQs Frequently asked questions about the protocol.
Security & Audits Protocol security, audits, and trust assumptions.
Brand Assets Logos, colors, and typography guidelines.
Sign up

Introduction

Overview
Varla 101

Protocol

Overview
Lending Model
Supply & Borrow Interest Rates Reserves
User Positions
Open Positions Supply Assets Borrow Assets Withdraw Assets Repay Loans
Risk Engine
Health Factor LTV & Thresholds Liquidations Market Resolution Oracle System

Markets

Overview
Polymarket
Opinion
Kalshi
Adapters

Token

Overview
Distribution
Utility & Governance
Varla Gems

Security

Overview
Trust Assumptions
Risk Disclosure
Risk Parameters

Resources

FAQ
Glossary
Links
Brand Assets

Getting Started

Overview
TypeScript SDK
GraphQL API
Smart Contracts

Smart Contracts

Overview
Core Protocol
VarlaPool VarlaOracle Interest Rate Liquidators Market Adapters
Governance & Access
Governance

References

SDK Reference
API Reference

Operations

Testing & Debugging
Contract Addresses

Security

Overview
Trust Assumptions
Risk Disclosure
Risk Parameters

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).
✦ Key Takeaways
  • Earning period — 30 weeks (epochs)
  • Conversion — 1 Gem = 1 $VRLA
  • Patience rewards — claimable % scales 0→100% over 150 days
  • Sybil-resistant — time-weighted balances + interest-based metrics

How Gems Are Earned

Lending Gems (40% of pool)

Earn Gems by supplying liquidity to VarlaPool.

Formula
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×

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×.

Borrowing Gems (30% of pool)

Earn Gems by borrowing against collateral.

Formula
Daily Gems = (time_weighted_debt / $1,000) × base_rate + (interest_paid × 10)

The protocol enforces a 1-minute minimum borrow duration, but real anti-gaming comes from the interest paid bonus. Paying $1 in actual interest is much harder to fake than borrowing $1,000 for 1 minute.

Daily snapshots of outstanding debt. Interest paid earns 10× bonus multiplier. Full repayment doesn't lose accumulated Gems.

Collateral Gems (20% of pool)

Earn Gems by depositing prediction market positions as collateral.

Formula
Daily Gems = (time_weighted_collateral_value / $1,000) × base_rate × tier_multiplier
Collateral Risk TierLTVMultiplier
Conservative80%1.0×
Moderate65%1.25×
Risk50%1.5×

Higher-risk collateral = more commitment = more Gems. Depositing positions in the Risk tier means you're accepting lower borrowing power, demonstrating stronger conviction.

Referral Gems (10% of pool)
Formula
Referral Gems = referee_earned_gems × 0.10 (10%)

One level only (no MLM chains). Referee must earn minimum 100 Gems before referrer gets credit. Max 50 credited referrals per wallet.


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
Distribution formula
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.

ℹ Fair distribution
No early-adopter multipliers. Every epoch distributes the same total Gems. Your share depends only on your activity relative to others in that epoch.

Anti-Gaming Design

The Gems system is designed to resist common exploit vectors:

AttackVectorDefense
Wash TradingDeposit/withdraw loops to inflate "volume"Time-weighted balances only count sustained positions
Borrow/Repay LoopsBorrow → repay → repeat to farm pointsInterest paid (real cost) is the primary borrower metric
Sybil AttacksSplit activity across many walletsPer-wallet caps and diminishing returns at scale
Last-Minute FarmingRush in right before snapshotRandom snapshot times + duration multipliers
Flash Loan AttacksInflate position for a single block24h minimum hold periods + protocol's 1-minute borrow duration

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.

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
Patience vesting formula
claimable_percent = (days_since_claim_window_opened / 150) × 100%
claimable_tokens  = gems_earned × claimable_percent
⚠ Early claim haircut
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?

BenefitHow
Rewards convictionLong-term holders get full allocation
Reduces sell pressureEarly sellers take a penalty, not a bonus
Funds protocol developmentUnclaimed tokens strengthen the Treasury
Simple and fairNo complex vesting schedules or unlock cliffs

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

FAQ

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

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