🦄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.
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