VestingTokens are open and composable, meaning any ERC20 token can be wrapped inside of them. As VestingTokens themselves are ERC20 tokens, they can be nested infinitely. This means that there is no limit to the number of times a VestingToken can be wrapped inside another VestingToken, allowing for limitless possibilities. Some things to consider:
  • While nesting multiple layers of VestingTokens is possible, it offers limited utility. The benefits of VestingTokens, including prevention of DEX selling/redemption of the LP, introduction of transfer friction, and a predictable unlock schedule, are all achieved with the first layer of wrapping. Therefore, any subsequent wraps are redundant.
  • Additionally, transfer fees accrue each time a VestedToken is moved between wallets or contract addresses. Moving a vestingToken into a new VestingToken contract will result in fees accruing both ways, which can become cumbersome with many layers of nested VestingTokens.