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veHYDX

Vote-Escrowed HYDX

veHYDX - ERC-721 NFT Governance Token

veHYDX is the vote-escrowed version of HYDX. Users can lock their HYDX tokens for up to 2 years to get veHYDX. The longer the lock, the higher the amount of veHYDX voting power received.

To encourage continuous locking and sustained participation from stakeholders, the veHYDX balance of users declines over time until it reaches zero at the conclusion of the initial locking period. veHYDX positions can be increased, split, and resold on a secondary market.

veHYDX Utility

  • Protocol revenue access: veHYDX holders can vote for gauges on a weekly basis, and access 100% of the trading fees and 100% of the bribes for the associated pool.

  • Governance participation: veHYDX holders can partake in governance and cast votes for the protocol improvement proposals.

  • Rebases: Weekly veHYDX distribution

veHYDX Specifications

  • ve(3,3) Mechanics: The Olympus DAO anti-dilution method, commonly known as the rebase mechanism, is combined with Curve's vote-escrowed model in the Solidly-initiated ve(3,3) Mechanics concept. To safeguard veHYDX holders from dilution and to enable a dynamic distribution of veHYDX among participants over time, the anti-dilution level has been capped at 52% and decreases by 1% per week over 52 weeks.

  • Gauge: A pool with dynamic HYDX rewards based on veHYDX weekly voting allocation. No negative voting.

  • Bribes: The custom amount of tokens paid by a third party on a gauge to veHYDX holders in exchange for their votes.

  • Max Lock: 2 years.

  • Flexibility: veHYDX positions can be merged, split, and sold on the secondary market.

Rewards

Voting holds several enticing benefits that you should consider:

  1. Directing HYDX Incentives: Your vote influences the allocation of HYDX token incentives. By voting according to your preferences, you shape the distribution of rewards.

  2. Pro-rata Share of Trading Fees: When you vote on a pool, you become eligible for a pro-rata share of all trading fees generated by that pool. This benefit applies exclusively to LPs staked to receive HYDX rewards.

  3. Pro-rata Share of Bribes: Voting on a pool also grants you a pro-rata share of all bribes added to the pool by third parties. Throughout an epoch, bribes can be contributed at any time. A snapshot of votes is taken at the end of each epoch (time to be set).

Remember: Casting your vote before the epoch snapshot is crucial to qualify for rewards. Remember, voting transactions do incur gas fees. If you skip voting in any week, while rewards will still go to the gauge, you'll miss out on your proportional share of those rewards.

  • Trading fees and bribes are claimable as a lump sum after the epoch has ended.

  • You have to vote weekly in order to be eligible for the fees and bribes.

  • You can change or reset your vote at any time.

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Last updated 3 months ago