YAKA & veYAKA

Overview

Yaka Finance uses two tokens to manage its utility and governance:

  • $YAKA — Utility token of the protocol

  • $veYAKA — Governance token in the form of an NFT (non-fungible token)

$YAKA is distributed to liquidity providers through emissions.

$veYAKA is used for governance. Any $YAKA holder can vote-escrow their tokens and receive a $veYAKA (also known as Lock or veNFT) in exchange. Additional tokens can be added to the $veYAKA NFT at any time.

The lock period can be up to 2 years, following the linear relationship shown below:

  • 100 $YAKA locked for 2 years will become 100 $veYAKA

  • 100 $YAKA locked for 6 months will become 25 $veYAKA

The longer the vesting time, the higher the voting power (voting weight).

$veYAKA Utility

  • Protocol revenue access: $veYAKA holders can vote for gauges on a weekly basis, and access 100% of the trading fees and the bribes for the associated pool.

  • Governance participation: $veYAKA holders can partake in governance and cast votes for the protocol improvement proposals.

$veYAKA voters receive:

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

  • Bribes deposited for the pools they vote for

  • Weekly veYAKA distribution (rebase)

$veYAKA 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.

  • Gauge: A pool with dynamic $veYAKA rewards based on $veYAKA weekly voting allocation. No negative voting.

  • Bribes: Custom amount of tokens paid by a third party on a gauge to $veYAKA holders in exchange for their votes.

  • Max Lock: 2 years.

Voting

For voting, you need to be aware of epochs. Each epoch lasts for 7 days, after which the bribes and trading fees are distributed. You earn only from the gauges (pools) you have voted for.

  • Trading fees and bribes are claimable as a lump sum after the next Epoch has ended (n+2)

  • 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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