🎛️Gauges

How Gauges work on veDFX

Gauge Voting Principle

Besides voting on governance proposals, veDFX owners can vote for DFX gauge weights with their veDFX balance. The gauge system implemented by DFX is similar to that of Curve and Angle Protocol.

Just like how it was done on Snapshot by DFX holders before the Governance upgrade, veDFX holders are now able to distribute their voting power across single or multiple gauges on-chain.

What is a Gauge: A gauge corresponds to a staking contract and every liquidity pool has one.

By voting for a gauge, veDFX holders prioritize the allocation of DFX tokens to specific staking contracts over others, based on their preferences.

This empowers long-term users to influence future DFX emissions. Consequently, liquidity providers seeking DFX rewards must lock their tokens into veDFX and participate in voting to continue receiving emissions from the protocol, eliminating fixed emission rates to liquidity pools.

---

Incentive Alignment

The gauge system reduces the impact of liquidity providers selling off their DFX rewards by giving preference to those who lock their rewards into veDFX. This way, veDFX holders with a long-term outlook control the distribution of DFX emissions.

---

In Practice

veDFX holders can allocate their voting power to different gauges to influence reward distribution. The total veDFX allocated to each gauge determines the rewards distributed. Once set, users need not vote weekly unless they wish to make changes. Votes for a gauge can only be changed every 10 days, ensuring each vote remains in effect for at least two weeks. Users may also choose not to allocate their full voting power.

---

DFX Issuance Rate

The rate of emission of DFX tokens remains unchanged. For details about the DFX emission rate, please refer to our allocation docs page.

User who have veDFX can therefore feel confident locking the maximum duration of 4 years knowing that the gauge system is not temporary and won't be deprecated any time soon.

---

Epoch Times

Each voting epoch will start and end every Wednesday at 7 PM EST / 12:00 AM UTC, lasting for 10 days before allowing changes to your vote.

Note: You can vote again if you have unused voting power before the 10-day expiration of your current allocation.

---

Terminology

Gauges: Each liquidity pool has one and their weight (emission amount) is dependent on how the veDFX holders vote.

Epoch: The time it takes for a certain amount of blocks on the chain to be completed.

Emission: The rate and amount of rewards released to that gauge.