🦄TOKENOMICS AND EMISSIONS

TOKENOMICS

Apex Vault utilizes two tokens for managing its utility and governance:

• $APXV— ERC-20 utility token of the protocol

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

$APXV is utilized for providing liquidity providers with rewards through emissions

$veAPXV is utilized for governance purposes. Any $APXV holder has the ability to vote-escrow their tokens and receive a $veAPXV (also referred to as veNFT) in return. Additional tokens can be added to the $veAPXV NFT at any time.

The lock period for vote-escrowed tokens is referred to as the vote-escrowed period (indicated by the "ve" prefix) and can last up to four years, following a linear relationship as depicted below:

• 100 $APXV locked for 4 years will become 100 $veAPXV

• 100 $APXV locked for 1 year will become 25 $veAPXV

The longer the vesting time, the higher the voting power (voting weight) and rewards the $veAPXV holder receives.

ve(3,3) MECHANICS

Apex Vault mechanics incorporate a blend of two DeFi concepts:

• Vote-Escrow — first introduced by Curve to bolster incentives for long-term token holders

• Staking/Rebasing/Bonding or (3,3) game theory — designed by Olympus DAO

The ve(3,3) mechanism serves as a combination of rewarding behaviors that are associated with Velodrome's prosperity, including liquidity provision and long-term token holding. Liquidity providers are rewarded with $APXV emissions, while $veAPXV holders receive protocol fees, bribes, rebases, and governance authority.

GAUGE VOTING

Within each epoch, $veAPXV token holders vote on their preferred liquidity pool gauges to determine which liquidity pools will receive emissions.

In exchange for their votes, $veAPXV holders receive 100% of the trading fees and bribes collected through the liquidity pool they have voted for.

WHITELISTING

Although Apex Vault permits permissionless liquidity pools, only whitelisted tokens may be included in gauge creation. As part of the partner onboarding program, tokens may be whitelisted as necessary. Partners may also request the whitelisting of additional tokens.