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.
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.
$veEXTRA
is 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.
$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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