# Flywheel Fundamentals

The Lynex ecosystem thrives on synergy and balance, combining the efforts of users, protocols, and liquidity providers to propel our liquidity strategy. This collaborative approach creates positive feedback loops, boosting platform functionality and value.

<figure><img src="/files/IMi0mjngt65OBOmlcyOr" alt=""><figcaption><p>Lynex Flywheel</p></figcaption></figure>

### **Liquidity Providers**

At the heart of our DEX, liquidity providers offer seamless trading by utilizing a concentrated liquidity model. This not only improves capital efficiency but also increases fee generation, outperforming traditional DEX models. Providers are rewarded with oLYNX tokens, giving them flexibility to meet their goals.

### Traders

Traders enjoy a vibrant trading environment with ample liquidity and minimal slippage, ensuring competitive rates. All trading fees go directly to veLYNX voters, rewarding those who actively contribute to our growth.

### Protocols

Protocols can kickstart their liquidity by incentivizing veLYNX voters to support their pools. This increases emissions to those pools, enhances APR, and attracts more liquidity providers, making protocols an essential piece of our ecosystem.

### veLYNX Voting

veLYNX voters play a critical role, receiving 100% of trading fees and bribes from protocols to prioritize certain pools. This system allows them to guide emission rewards to preferred pools, creating a dynamic liquidity landscape.

Lynex adopts ve(3,3) mechanics, combining Vote-Escrow (inspired by Curve) for long-term engagement and (3,3) game theory (from Olympus DAO) for stake-based rewards. This encourages liquidity provision, strategic LYNX locking, and active governance participation, enriching our ecosystem for all stakeholders.


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