The key stakeholders in the ve (3,3) model are;
The protocol owners (veNFT Holders) can vest their governance token over a specific period (1 week to 4 years) to receive veNFT.
Vesting the governance token to get veNFT enables the users to;
- 1.Vote to whitelist which tokens can be added to the Voltswap DEX for trading
- 2.Vote to direct the weekly emission to pools of their choice. Conversely, veNFT holders also have the ability to downvote votes to prevent spam liquidity pools
- 3.Earn 100% of swap fees from the pool on which they have voted
- 4.Earn additional bribes by users/ protocols from weekly governance vote and whitelist when available
- 5.Earn up to 2.5x boost on emission if the user also provides liquidity on the DEX
- 6.Earn a portion of the token emission
Note: By specifying the lock expiry date, the veNFT holders can vest their governance token for any period ranging from 1 day to 4 years
While playing the key role to provide liquidity to the DEX with the ve (3,3) model, the incentive design for Liquidity Providers changes from the traditional Uniswap style liquidity provisions.
What LPs earn;
- 100% of the weekly token emissions
- Boost of up to 2.5x if vesting veNFT
What LPs do not earn;
- Swap fees (100% fees go to veNFT holders)
IMPORTANT: LPs can vest tokens sourced from the weekly emission or market into veNFT to earn higher revenue (Swap fees + Emission + Boost) from the protocol.
Independent Protocol can participate in a number of ways in ve (3,3);
- Yield optimization by vesting governance token into veNFT and earning swap fees from VOLTSWAP
- Liquidity Enhancement by bribing veNFT holders to whitelisting the protocol token as well as direct weekly emission to the protocol tokens