Token & Lock Types
Flexible, modular ways to participate.
Last updated
Flexible, modular ways to participate.
Last updated
Hydrex introduces a modern token structure built to support sustainable growth and flexible participation. At the core of the system are three components: liquid HYDX, options tokens (oHYDX), and veToken-based lock types.
The ve(3,3) model combines two major innovations in DeFi: vote-escrow (ve) mechanics, which reward users for locking tokens, and the (3,3) game theory from Olympus DAO, which incentivizes cooperative staking behavior.
In this system, users lock tokens into NFTs (veTokens) to gain governance power and earn protocol rewards. The longer the lock, the greater the influence and yield. At the same time, emissions are directed toward the most productive liquidity, aligning incentives between voters, LPs, and protocols.
ve(3,3) creates a powerful flywheel: lock tokens, vote for pools, attract liquidity, generate fees, and repeat. When executed well, it sustains deep liquidity, boosts protocol alignment, and rewards long-term participants.
Hydrex builds on this foundation with tiered lock types, liquid-backed emissions, and a UX that finally makes the model accessible to everyone.
oHYDX is the options token earned through liquidity mining and other protocol incentives. It can be redeemed in two ways: permalocked into a veNFT for long-term rewards, or unlocked into liquid HYDX by paying USDC. This model gives users a choice between immediate liquidity and deeper protocol alignment.
Hydrex supports two primary lock types, both represented as veNFTs.
Locked Accounts represent full, irreversible commitment. These are created when users convert their oHYDX rewards directly into veNFTs without supplying any USDC backing. Once created, they cannot be withdrawn, but they receive permanent voting power in the Hydrex protocol at a 1:1 ratio with the underlying veTokens that were locked.
Flex Accounts are created by locking liquid HYDX for a one-year term. These accounts offer elevated rewards and voting power. Here are the nuances of how they work:
Upon locking for 1 year, they have 1:1.3 voting power, a 30% boost over locked accounts.
Upon locking for 1 year, the HYDX start vesting. 50% of the underlying HYDX is accessible immediately if the user chooses to exit. Upon exit they forfeit the rest of their HYDX & it is burned. They will no longer have voting power.
Over the span of 1 year, the liquid HYDX vest increases, while the voting power decreases proportionally to the duration that has elapsed. Users always have the option to "relock" at 1 year to retain full voting power.
Together, these lock types offer a spectrum of engagement — from liquid, to flexible, to fully committed — allowing users to optimize for accessibility, yield, or alignment. Every path feeds into the broader ve(3,3) flywheel, reinforcing the strength and sustainability of the Hydrex ecosystem.
Liquid HYDX is the base token of the protocol, but it doesn’t enter circulation freely. Each HYDX must be backed by at least 1 USDC (see ), ensuring a hard price floor and protecting against runaway inflation. Users can access liquid HYDX by redeeming oHYDX and supplying the USDC backing, or by participating in Flex lock positions.
