Extra Finance
  • 3️⃣Welcome to Extra Finance
  • Overview
  • Getting Started
    • MetaMask
    • Safe (Multi-Sig Wallet)
  • Audits & Security
  • Risks
  • Contracts & Transparency
  • Academy
    • Thoroughly understand a farming position
    • Intro to Leveraged Yield Farming - Overall
    • Intro to Leveraged Yield Farming - Long Strategy
    • Pseudo Delta Neutral (PDN) Farming Strategy
    • Extra Finance Deep Dive
  • Bridge EXTRA
  • FAQ
  • 👨‍🌾Leverage Farming
    • Introduction to Leveraged Yield Farming
    • How Extra Finance Works
    • How to use
      • Open a Farming Position
      • Close a Farming Position
    • Strategy
      • Re-investing Strategy
      • Long/Short Farming Strategy
      • Market Neutral Strategy
    • Pool Info
    • Price Feed
    • Impermanent Loss
    • Liquidation
  • 🏦Lending
    • Introduction to Lending
    • How to use
    • Interest Rate Model
    • Pseudo-Fixed-Interest-Rate Model
  • 🌕Tokenomics
    • Introduction to Tokenomics V2
    • ve-Mechanism & Utility V2
    • Allocation & Emission V2
    • Staking V2
    • Tokenomics V1
      • ve-Mechanism & Utility
      • Allocation & Emission
      • Staking
        • How to Stake (to veEXTRA)
  • 📘Resources
    • Param & Fee
    • Roadmap
    • Brand Assets
    • Links
    • Term of Use
    • Terminologies
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  • ve-Mechanism
  • Governance
  • Utility
  1. Tokenomics
  2. Tokenomics V1

ve-Mechanism & Utility

Please note that this content is about Tokenomics V1 and is provided for reference purposes only. For more detailed information, please refer to ExtraFi Tokenomics V2.

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Last updated 1 year ago

ve-Mechanism

Extra Finance uses two tokens to manage its utility and governance:

  • $EXTRA — ERC-20 utility token of the protocol

  • $veEXTRA — ERC-20 governance token of the protocol

$EXTRA is used for rewarding liquidity providers through emissions.

$veEXTRA is used for governance. Any $EXTRA holder can vote-escrow their tokens and receive a $veEXTRA in exchange.

The lock period (also known as vote-escrowed period, hence the ve prefix) can be up to 1 year (52 weeks), following the linear relationship shown below:

  • 100 $EXTRA locked for 52 weeks will become 100 $veEXTRA

  • 100 $EXTRA locked for 13 weeks will become 25 $veEXTRA

The longer the vesting time, the higher the voting power (voting weight) and rewards the $veEXTRA holder receives.

Governance

Vote & Governance in the Community.

$veEXTRAis the voting power in Extra Finance's on-chain governance process. Users could use it to initialize a proposal, or cast for/against community proposals.

Utility

By holding $veEXTRA, users can unlock the following benefits and features:

1. APR rewards, sourced from both protocol fees and $EXTRA token incentives.

The protocol fee comprises various tokens collected into the treasury and is shared once per epoch. It is used to buy back $EXTRA tokens from the market and then distribute them to holders of $veEXTRA tokens.

A portion of the $EXTRA tokens allocated to the community will also be assigned to $veEXTRA token holders, subject to a specific emission plan.

At the end of each epoch, rewards will be collected for distribution.

2. Unlock higher leverage for yield farming pools.

3. Gain access to lending pools with a high utilization rate.

Lending pools may experience high demand and potential shortages when implementing leverage farming. However, holders of $veEXTRA will have the privilege to borrow from these pools.

4. Priority to more coming features and benefits, including:

  • Advanced facilities including one-click position-rebalance tool.

  • Automatic strategy vaults.

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