Bribes
The introduction of veSTELLA brings an exciting feature for protocols and token issuers keen on increasing their overall liquidity on StellaSwap. Partnering protocols can attract deep liquidity and grow exposure by participating in veSTELLA.
veSTELLA is StellaSwap's vote-escrow token model that introduces governance, incentivize long-term engagement, and democratize token emissions distribution. By locking STELLA, users receive veSTELLA, an ERC-721 token, with voting power determined based on the duration and amount of the lock.
Voting Escrow (VE) model allows protocols to:
Acquire STELLA and vote directly for their own pool to boost emissions.
Mobilize their community to vote for their pool on veSTELLA by sharing it across their channels.
Provide bribes to attract external voters – any user can vote for their pool to receive both the bribe and STELLA incentives.
More votes = More emissions = More incentives on your pool.
veSTELLA holders vote to direct weekly STELLA emissions toward liquidity pools, with rewards distributed pro rata based on votes. This model revolutionizes StellaSwap’s incentivization strategy as veSTELLA holders control 100% of StellaSwap's emissions. Protocols can directly add bribes to their pools or use veSTELLA voting to direct emissions themselves in the pursuit of boosting their pool TVL. This creates a flywheel effect, aligning incentives across the platform for greater participation and sustainable growth.
Each week a number of STELLA tokens - starting from 280,000 STELLA - is up for vote. Bribes will be the most efficient way to attract TVL towards a pool; provided expected market conditions bribes will be:
Cheaper than acquiring STELLA, Locking it for veSTELLA and voting with it
More efficient in attracting TVL when pools are rewarded with STELLA vs protocol token
More visibility for protocol token and pair
Interact directly with StellaSwap community and veSTELLA holders
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