Gauges & Voting Rewards
Last updated
Last updated
The Moe Protocol introduces a mechanism of Gauges and Voting Rewards for MOE token emissions to incentivize liquidity provision and reward participation through its veMOE system. By staking MOE tokens, users will begin accumulating veMOE, which represents their voting power within the protocol. These staked MOE tokens will also accrue real yield in the form of sMOE rewards.
Users will use their veMOE to vote for pools to boost their rewarded MOE token emissions. These rewarded pools will have a MOE farm to function as liquidity mining rewards. Additional rewards for users may be earned by voting via Voting Rewards.
Any party can set rewards to give additional tokens to users who direct their veMOE votes at a certain LP. These rewards are permissionless, meaning anyone can contribute. This provides an extra layer of incentives for users to utilize their veMOE for voting.
MOE stakers accrue veMOE while staked.
Maximum veMOE: The maximum quantity of veMOE you can accrue is equal to 1000 times the staked MOE balance.
Accrual Rate: Your veMOE balance is accrued at a linear rate, and reaches the maximum veMOE in 7 days.
Unstaking: If a user unstakes any of their MOE balance, their veMOE balance is set to zero
Topping Up: If a user increases their MOE staking balance, their veMOE balance remains unchanged, but the maximum is increased. You will begin to accrue veMOE for the newly deposited MOE at a linear rate over 7 days.
💡 The rate of veMOE accrual may be modified by the team. This may be governed by community governance in the future.
Merchant Moe uses a power model approach to counting $veMOE votes. The weighting power is currently set to 2/3 but can be adjusted by the protocol. With this model, the weight of any new vote directed at a pool is dependent on the pool’s overall voting share.
% of total farm emissions = weight / totalWeight where weight = pow(votes, alpha) and totalWeight = sum(weight)
The power function to weight votes is likely to make the reward distribution more equitable and encourage a broader participation across different pools, potentially leading to a more decentralized and fair system.
Here is a simple guide to voting, gauges, and voting rewards within the Merchant Moe protocol.
Stake MOE: Users can stake their MOE tokens to begin accruing veMOE, which are non-transferable and represent voting power. (Staked MOE will also earn sMOE rewards)
Voting for Pools: veMOE gives users influence over the distribution of MOE rewards emitted to various liquidity pools. Users can direct their veMOE balance to pools to increase that pools share of farm emissions. Users can split their votes to direct them at multiple pools. After voting, the change in emissions goes into effect immediately, allowing for a responsive and community-driven reward system. Any additional veMOE accrued during a 7-day ramp up period will need to be directed separately.
Voteable Pools: Pools which have been approved to receive rewards will immediately begin to earn rewards based on the voting distribution amongst approved pools. The list of voteable pools is maintained by the team. In the future, this may be managed by community governance.
Withdrawing Votes: Voters may withdraw their veMOE from pools at any time. A user may wish to do this to redirect votes to a different pool. Alternatively a user may need to do this because all votes must be withdrawn if they wish to unstake MOE.
Reward Allocation: Gauges are used to measure and distribute rewards to various liquidity pools based on the collective voting of veMOE holders.
Voting Rewards for Votes: Users may be able to earn additional rewards for voting by setting their votes to a Voting Reward pool.
MOE stakers may earn additional rewards after voting on specific pools. To do this they must direct their votes to an elligble pool. After voting, they can opt-in to a Voting Reward Pool to earn additional tokens.
Voting Reward Pools complete the incentive flywheel of the Merchant Moe ecosystem. MOE token holders stake MOE for sMOE yield and begin to accrue veMOE while staked. Although Users who provide liquidity with Merchant Moe have an inherent incentive to vote for their own pools, those who don't provide liquidity might need further incentives to vote. With Voting Reward pools, MOE stakers can earn additional yield simply by voting. This system ensures all holders have incentivizes to utilize their voting power.
Users must opt-in to a reward pool in order to receive rewards. If a user has allocated veMOE to a pool, but didn’t opt-in to a reward program, they don’t automatically qualify.
Users may claim rewards proportional to their allocated veMOE in the reward program. They may claim the rewards at any time, after opt-in.
Any given pool may have zero, one, or multiple reward programs. If the pool has multiple reward programs, the user may only opt-in to one reward program.
The reward programs may start or end at any time.
Stake MOE: Stake your MOE to begin earning sMOE yield and accrue veMOE voting power.
Vote: Direct veMOE votes to a various liquidity pools to direct MOE rewards to that pool
Liquidity Farming: Deposit LP into the yield farm you voted for to earn more MOE tokens.
Set Votes to a Reward Pool: Set your votes to a Voting Reward Pool to earn additional token rewards.
Collect Rewards: Collect the corresponding Voting Reward pool reward tokens.
The reward programs are created by the team. If you'd like to introduce a Voting Rewards Pool, please contact the Merchant Moe team. In the future, they may be created permissionlessly.
Create a Voting Reward Pool: Any user can create a Voting Reward Pool by depositing tokens to incentivize veMOE holders to direct votes to their target pool. Contact the Merchant Moe team to create your pool.
Rewards for Users: Users direct their veMOE votes to a pool and set the votes in the Voting Reward Pool to earn the deposited tokens.
Increase Emissions: Votes from the veMOE in the Voting Reward Pool will increase the MOE rewards emitted to the associated yield farm. This allows you to incentivize voting for your desired pool.
Unstaking any amount of MOE results in the loss of all veMOE tokens. Before withdrawing staked MOE, users must remove all votes from pools. If any votes are still active, you will not be able to unstake and withdraw.
The Moe Protocol's Voting Reward Pools and Gauges offer a dynamic and engaging way for users to participate in the governance of the protocol's reward distribution. By staking MOE, voting on pools, and engaging with Voting Reward Pools, users can directly influence their earnings and the overall health of the liquidity markets on Merchant Moe.
