Rebase Protection

Lynex blends Olympus DAO's anti-dilution rebase mechanism with Curve's vote-lock model, inspired by Solidly's ve(3,3) concept. This setup protects veLYNX holders from dilution by adjusting allocations over time, with a starting anti-dilution cap of 52% decreasing by 1% weekly for a year to ensure fairness.

The duration of veLYNX locks affects the rebases received, promoting long-term participation. Dilution protection rebases are awarded each epoch, encouraging early locking of tokens.

A practical example to give you a better understanding of how the system works:

EXAMPLE: 52% Dilution Protection:

Note: Lynex has a 52% rebase, decreasing 1% per epoch for 52 epochs.

  • You have 1000 LYNX, which is 10% of the total supply of 10,000 LYNX at the time.

  • During this epoch, another 10,000 LYNX was emitted to gauges, pushing the total supply of LYNX to 20,000

  • You can claim your rebase after the epoch ends and receive 500 extra LYNX added to your position. This makes you now have 7.5% of the total supply, at 1500 LYNX out of 20,000 LYNX

The above is a crude but straightforward example that should simply explain the ideology and functionality of the rebase.

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