Locking $LT (veLT)
Last updated
Last updated
For people who are familiar with DeFi, vote escrow ("ve”) concept is not new, as it has been successfully implemented in other projects like . The HOPE Ecosystem has also adopted this concept to enhance governance and incentivize participation.
$LT holders can vote lock their $LT into the HOPE Ecosystem to receive veLT. The longer and more you lock, the more veLT you receive. It incorporates and value accrual mechanisms.
Vote locking allows you to vote in governance, boost your $LT rewards and receive fees generated from the ecosystem.
veLT is a special ERC-20 token that stands for vote-escrowed $LT. It represents $LT that is locked for voting and is not transferable or tradable. The longer and more you lock your $LT for, the more voting power you have (and the bigger boost you can reach).
The number of veLT you will receive depends on how long and how much you lock your $LT for. The minimum locking time is two weeks, and the maximum locking time is four years.
Each 40,000 $LT locked for 1 year is equivalent to 1 veLT.
Alternatively, for every 10,000 $LT locked for 4 years, you will receive 1 veLT.
Your veLT weight will gradually decreases as your escrowed tokens approach their lock expiry.
For more information, you can check details of mechanism.
When vote locking $LT, you will also earn a boost on your provided liquidity of up to 2.5x. The goal is to incentivize users to participate in governance by rewarding them with a bigger share of the daily $LT inflation.
After creating or adding to your lock, you need to click the apply boost button to update your boost on each of the protocols you're providing liquidity in. Your boost can also be updated by staking or unstaking LP tokens, or claiming $LT from a liquidity gauge.
Click below for a guide on how to lock and boost your $LT rewards:
For example, if you start at 1000 veLT and your voting power decreases to 800 veLT, your boost will still apply your original voting power of 1000 veLT until you trigger a checkpoint.
Your voting power applies to all measures but may produce different boost rates based on how much liquidity you are providing and how much total liquidity the pool has.
Your boost rate will remain constant until you trigger a checkpoint yourself, regardless of whether other liquidity providers vote lock more $LT. It should be noted that your reward amount may change since it is affected by multiple factors including the total veLT among all participants.
Your voting weight would decrease over time, however, the decrease in boost and voting power would only be realized at certain .