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Governance
What is veASH?
ve stands for Voting Escrow, a system for temporarily locking up tokens (such as veCRV for Curve; or veASH for AshSwap).
Governance staking is another way for ASH holders to benefit from holding ASH tokens. In simple terms, Governance staking means you can stake (or lock) ASH to get more rewards. The main advantages of staking ASH are:
- 1.Share 50% of the trading volume across all trading pools paid in LP-token of the main stablecoin pool.
- 2.Boost your ASH Emission APR across all your LP pools by up to 250%.
- 3.Vote in the AshDAO to govern the emission and other metrics.
What happens if more people lock their ASH?
That will make your percentage of veASH (your capacity) compared to the total diluted veASH, and consequently, the amount of rewards you receive from revenue sharing will also be reduced.
veASH refers to escrowed ASH, a holding mechanism enabling users to secure their ASH for varying durations in order to enhance their voting influence. Users have the flexibility to lock their ASH for as short as a week and as long as four years. As users extend the duration of their voting escrow, their stake increases, leading to a greater allocation of voting power.
An epoch will last for one week, starting from 00:00 on Thursday until 23:59 on the following Wednesday
Governance Stake convert rate
Lock period | Convert rate |
|---|---|
7 days | 0.47% |
1 year | 25% |
2 years | 50% |
3 years | 75% |
4 years | 100% |
By locking ASH, you can earn 50% of the trading fees across all pools at AshSwap. Your reward will be denominated in the form of an LP token of the main pool, which you can swap back to a stablecoin or any tokens of your choice.
Your LP-token reward is shown in the UI. Click
Harvest to claim your reward.Governance Staking Reward formula:
Your Governance Staking Reward = 50% Trading Fee x your veASH Capacity
*Note: Your snapshot capacity will be taken at the start of the epoch and will be used to calculate the rewards you will receive in the previous epoch. Therefore, if you apply the formula using a different percentage capacity at another time, there is a significant possibility that the calculated result will be inaccurate.
For example:
This week we have a total of $200 trading fee. The reward for veASH holders is 50% of the total trading fee and our veASH capacity is 1%. Enter the formula:
Your Governance Staking Reward value = $100 x 1% = $1
Your LP-token reward is shown in the UI. Click Harvest to claim your reward.
Note:
- Your reward will be updated at 00:00 every Thursday on AshSwap Mainnet (and every 30 minutes on AshSwap Devnet).
- If you do not see your reward at 00:00 Thursday or you see the Harvest button light up but the reward is still $0.00, it could be because your reward is too small to appear on the UI.
- Your veASH weight gradually decreases as your escrowed tokens approach their lock expiry. Does it mean users will lose money every day? Of course not, when your veASH decreases to 0. It also means that the lock period of your ASH is over. You can withdraw your staked ASH right away. However, If you want to keep your veASH stays on the maximum, just extend your lock period.
The bribe is an interesting feature of the DAO for projects to leverage and for veASH holders to earn more yields. When a farm becomes an ASH farm, it receives ASH and dilutes the rewards of other farms. This, in a way, diminishes the benefits of other LPs who are likely also veASH holders. Voters, therefore, will be hesitant to vote for new farms first to be included and second to receive more rewards. But token owners can bribe them to vote in their favor.
This is also a tool for projects to compete and deepen their liquidity on AshSwap. Let’s take an example.
As far as we’re concerned, there are multiple liquid staking projects in the MultiversX ecosystem right now. As they compete for more TVL, one of the strategies is to provide more yields to their users, and an obvious way to do that is to encourage users to become LPs on AshSwap and earn some ASH tokens. But if their farms don’t receive ASH rewards, it will not be attractive. They can then bribe veASH holders to vote in their favor. Those who have more bribes are likely to receive more votes, provide more rewards to users, and be able to have the upper hand in the competition.
Last modified 3mo ago