ve(3,3) Model
Last updated
Last updated
In the world of cryptocurrencies, liquidity is key, and aligning incentives is vital. Traditional decentralized exchanges (DEXs), like Uniswap, face hurdles in motivating LPs and governance token holders. The ve(3,3) model addresses these challenges by introducing a unique fee and incentive system. It balances inflating governance token rewards with encouraging holders to lock assets, reducing selling pressure and maintaining token value and APR.
The ve(3,3) model tackles the complex issue of incentivizing liquidity providers (LPs) who receive rewards as an inflating asset, all while managing persistent selling pressure. Our innovative approach creates a self-sustaining system that fosters growth and stability by offering predictable rewards.
This approach involves:
Motivating LPs with unlocked governance tokens.
Redirecting trade fees to veToken holders who lock their tokens.
Allowing uneven protocol emission distribution, empowering protocols to influence emissions allocation to specific pools.
The ve(3,3) model aligns incentives for all Yaka ecosystem participants, including veYAKA voters, LPs, traders, and protocols.
veYAKA Holders: Encouraged to vote for high-volume pools or those incentivized by protocols. Fees and bribes create fairness.
Liquidity Providers (LPs): Motivated by $YAKA Holders: Encouraged to vote for high-volume pools or those incentivized by protocols. Fees and bribes create fairness. emissions, which can be locked for additional incentives.
Traders: Enjoy reduced slippage and efficient swap algorithms.
Protocols: Access cooperative liquidity, capital-efficient trading, and the ability to incentivize liquidity through bribes. This empowers them to manage their liquidity effectively.
