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    • veHLDR and Gauges
      • veHLDR
        • How veHLDR Works
        • How To Use veHLDR
        • How veHLDR Boosting Works
          • Working Supply
          • Calculating My Boost
          • Minimum veHLDR for Max Boost
      • Gauges
        • How Gauges Work
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  • How is veHLDR different from veCRV?
  • Voting Power
  • Protocol Revenue Distribution
  1. Ecosystem
  2. veHLDR and Gauges
  3. veHLDR

How veHLDR Works

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Last updated 2 years ago

How is veHLDR different from veCRV?

There are a few modifications that set veHLDR apart:

  • Instead of locking pure HLDR, users obtain veHLDR by locking Holdr Pool Tokens (HPTs). This ensures that even if a large portion of HLDR tokens are locked, there is deep trading liquidity.

  • veHLDR's maximum locking period is 1 year, a decrease from veCRV's 4 year period. The minimum locking period is 1 week. DeFi moves quickly, and in the event governance decides to use a new voting system, this allows for a shorter, but still sufficiently long, waiting period to transition.

Voting Power

All votes, whether on-chain or on Snapshot, consider veHLDR voting power. In addition to typical DAO votes, veHLDR is used to vote on Liquidity Mining Distribution with .

Voting power scales linearly with amount of BPT locked and with amount of remaining lock time.

Example

If a user locks 1 HPT of 80/20 HLDR/wNEAR for the maximum time of one year, they will receive 1 veHLDR; however, this veHLDR quantity starts immediately decaying with time. If the user does not extend the lock period, this will decay to 0 after the year is complete, at which point the user can redeem their 1 HPT of 80/20 HLDR/wNEAR

Protocol Revenue Distribution

veHLDR holders are entitled to a share of 75% of collected protocol fees. Users can collect their proportional share (veHLDRuserveHLDRtotal\frac{veHLDR_{user}}{veHLDR_{total}}veHLDRtotal​veHLDRuser​​) after the fees are consolidated. Consolidation is a necessary step since protocol fees are collected as a wide array of tokens, and dividing up long tail assets for everyone could result in higher gas fees than token value in some cases.

80/20 HLDR/wNEAR
Gauges