Rewards
There are 3 types of rewards on veSwap.
80% of total weekly
$VESW emissions are allocated to liquidity providers in gauges, which is then split up and distributed by the results of the periodic $veVESW gauge voting.These rewards are streaming and are available for claim as these accrue.
Represent liquidity pool trading fees distributed to voters in a gauge or to liquidity providers in a pool ( e.g., if the pool is
VESW/USDC the distributed tokens are $VESW and $USDC).These rewards are available for claim as they accrue. They do not need to be claimed each epoch.
The concept of bribes was made by popular by Convex which came to control a large share of Curve voting power. As users kept chasing high CRV rewards, protocols realized they could grow their protocol and on-chain liquidity by bribing veCRV holders to vote for their pool.
veSwap natively supports anyone to attach bribes onto a gauge and those who vote for it are then able to claim them. Bribes are distributed only to voters on that pool, proportionally to their share of pool votes.
These rewards are available for claim after the epoch flips and are proportional to the voting power cast by a voter (
$veVESW).Liquidity Providers can attach a
$veVESW NFT to any number of gauges to receive a boosted reward rate on deployed liquidity. The reward boost is subject to a variable rate that depends on several factors including the current prices of tokens, the token boosted APR, the $VESW locked in your veVESW, the % of TVL using $veVESW, and total gauge TVL.Since all the elements mentioned above influence the dynamics of boosting some gauges will become easier to boost than others. Boosting is calculated according to the following formula:
It is necessary to pay attention to the mechanics of
$veVESW NFTs in order to properly utilize the boosting system. A $veVESW NFT can be attached to any number of gauges, but a gauge can only have one $veVESW NFT attached, so the user gets the most reward boost by concentrating all their VESW into a single $veVESW NFT.In order to concentrate the power of separate veVESW NFTs you can merge them together to achieve a higher reward boosting rate.
If a majority of the TVL is farming without
$veVESW, a user that uses a $veVESW will receive the maximum reward boost. The difference between minimum and maximum APR will always be 2.5x, but the numbers will vary based on how many other $veVESW is deployed.Last modified 5mo ago