Comment on page
A protocol's emissions serve to attract users and liquidity, but the value of liquidity can vary. UpDEX addresses this issue by incentivizing emissions for pools that generate high fees for voters. The DEX is self-optimizing, continually having voters chase the best voting yields each week. The interests of voters are automatically aligned because they exclusively receive fees and bribes from the pools they vote on. This approach ensures that UpDEX can constantly optimize and enhance the voting yields for its users.
Just like Curve, UpDEX utilizes a similar method by having users lock
veUP(where "ve" stands for vote-escrowed). However, unlike Curve, UpDEX does not tie the
veposition to a specific account. Instead, it makes the
veposition transferable by tokenizing it into an NFT (ERC-721). This unique approach addresses the general capital inefficiency of
veassets and makes them tradeable.
The overall voting power of the protocol is determined by the collective amount of
UPtokens locked within all
veUP, which is then multiplied by the combined linear time decay of the vests.
For instance, let's say you lock up 1
UPfor 4 years. This translates into a voting weight of 1 that decreases linearly with time. In other words, if you lock up 1
UPfor 2 years, its voting weight would be 0.5.
UPwere locked up in
veUPfor 3 years. The total voting power of the protocol would then be calculated as follows:
3/4 * 1,000,000 = 750,000 voting weight.
We have implemented an anti-bricking mechanism for trading fees in UpDEX. If no user claims their trading fee rewards, the fees are transferred to the voters of the next epoch and become instantly claimable. However, if even one user claims their rewards, the fees become permanent for all users.
To participate in the voting process, follow these steps:
UPtokens into a
veUP. This lock-in can last for a period of 1 week to 4 years.
- 2.Vote for specific liquidity pools such as USDT-WBNB.
- 3.Collect voter bribes and fees only from the pools that the
There are two types of rewards that voters can receive: voter bribes and trading fees. Voter bribes are deposited before the start of an epoch, and voters who vote for a pair with voter bribes can claim them on a pro-rata basis immediately after the epoch ends. Trading fees, on the other hand, are generated during the epoch and become claimable as they come in. To save on gas costs, it is recommended to claim trading fees at the end of an epoch.