veLYNX

Amplifying Governance

veLYNX— ERC-721 governance token in the form of an NFT (non-fungible token)

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

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

veLYNX Token Address: 0x8D95f56b0Bac46e8ac1d3A3F12FB1E5BC39b4c0c

veLYNX Utility

  • Protocol revenue access: veLYNX 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: veLYNX holders can partake in governance and cast votes for the protocol improvement proposals.

veLYNX voters receive:

  • Trading fees generated by the pool(s) they vote for

  • Bribes deposited for the pools they vote for

  • Weekly veLYNX distribution (rebase)

veLYNX 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 veLYNX holders from dilution and to enable a dynamic distribution of veLYNX 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 LYNX rewards based on veLYNX weekly voting allocation. No negative voting.

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

  • Max Lock: 2 years.

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

veLYNX holders play a crucial role in determining the allocation of emissions among liquidity pools during each epoch. By voting on their preferred liquidity pool gauges, they influence the distribution of LYNX emissions.

The emissions are proportionally distributed based on the total votes received by each liquidity pool. This ensures a fair and democratic process in determining the rewards.

In return for their participation, voters receive 100% of the trading fees and bribes collected from the liquidity pool they have voted for. This incentivizes active engagement and enables voters to benefit directly from their chosen pool's activity.

Rewards

Voting holds several enticing benefits that you should consider:

  1. Directing LYNX Incentives: Your vote influences the allocation of LYNX 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 LYNX 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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