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Value Accrual to VOLT with ve (3,3)
As a governance token with ownership of the protocol, the main purposes of the VOLT token are to incentivize liquidity providers on the Voltswap as well as getting as many users involved as possible in the governance of the protocol.
Currently VOLT has three main uses: voting, vesting and boosting. Those three things will require you to vote-lock your VOLT and acquire veVOLT. veVOLT stands for vote-escrowed VOLT NFT, it is simply VOLT locked for a period of time. The longer you lock VOLT for, the more veVOLT you receive.
VOLT can now be vested (locked as veVOLT) to receive 100% of the swap fees from Voltswap.
One of the main incentives for VOLT is the ability to boost your rewards on provided liquidity. Vote locking VOLT allows you to acquire voting power to participate in the VOTE and earn a boost of up to 2.5x on the liquidity you are providing on Voltswap. The calculation are like the following: 40% of the distribution weight is based on the user's share of liquidity provider token (LPs) in the staking pool; 60% of the weight is based on user's share of votes among the total votes for the pool (up to its LP share percentage). Therefore the profit maximizing strategy is to match your votes in the pool with the amount of liquidity you provided in the pool.
Once VOLT holders vote-lock their veVOLT as NFT, they can start voting on the weekly emissions, governance proposals and pool parameters.