Exploring the New Wave of Ve-Tokenomics: A Deep Dive into Leading Protocols
The landscape of decentralized finance (DeFi) is evolving with the emergence of vote escrow tokenomics. In the world of DeFi, ve-tokens have become a unique way to align stakeholders, enhance yield, and govern protocols. In this post, we explore some leading protocols that have embraced this innovative token model.
Pendle
Ve-token: vePendle
Usage: lock up PENDLE to earn vePENDLE
Benefits:
- vePENDLE holders determine incentive channeling.
- vePENDLE holders earn from the platform fee and swaps rewards.
- vePENDLE holders have their LP rewards boosted.
Mux Network
Ve-token: veMUX
Usage:
- Lock MCB to earn protocol rewards in ETH and MUX
- Vest veMUX to receive MUX rewards and convert them to MCB
Benefits:
veMUX receives direct rewards from Mux Network’s usage, translating to real yield for veMUX holders.
Glacier Finance
Ve-token: veGLCR
Use: Lock up GLCR to earn veGLCR
Benefits:
- veGLCR holders receive rewards from the protocol fees.
- veGLCR holders receive bribes for voting.
- veGLCR holders govern the protocol’s future.
- veGLCR is an NFT, making it sellable/transferable.
Introducing Mantissa Finance
Mantissa Finance is a next generation stableswap from Polygon, and coming to Polygon zkEVM. They have a unique ve-token model we wanted to highlight.
Ve-token: veMNTS
Use:
- Earned by locking up Balancer style 80/20 pool tokens.
- Ensures deep liquidity for MNTS.
- veMNTS positions will be tradable on their marketplace.
Benefits for veMNTS holders:
- Boosted LP rewards, including for aggregators.
- Governance power through voting rights.
- Determine gauge voting and receive bribes.
- Rewards from future products.
Conclusion
The above protocols are carving a niche within the DeFi space by leveraging vote escrow tokenomics. Each brings its unique approach and benefits. Among them, Mantissa Finance’s multifaceted model offers an intriguing path forward, providing stakeholders with numerous ways to engage and benefit.
About Vector Finance
Vector Finance is the number one yield booster on Avalanche. We’re building unique DeFi strategies to for our users to earn more on their assets!
