Overview

veXPOLAR (vote-escrow XPOLAR) is a vesting system based on Curve's veCRV which locks 40/40/20 SPOLAR/XPOLAR/pNEAR LP for a maximum of 1 year. The veXPOLAR and Gauge system is designed to promote long-term token-holder alignment and facilitate fair protocol fee distribution.

By locking the 40/40/20 SPOLAR/XPOLAR/pNEAR, holders are given veXPOLAR, entitling them to governance rights and protocol fee collection. A user's veXPOLAR balance is directly proportional to the amount of 40/40/20 SPOLAR/XPOLAR/pNEAR locked and the duration of time left in the lock period. In short if a user locks 1 SPOLAR/XPOLAR/pNEAR for 52 weeks, they will receive the same amount of “vote escrowed” strength as someone who locks 2 SPOLAR/XPOLAR/pNEAR for 26 weeks.

Implications:

• veXPOLAR equates to boosted liquidity mining emissions for all gauges. The share of a given staked pool, and the lock multiplier are both factors in the amount a user will be entitled to in liquidity mining emissions.

• veXPOLAR holders receive 50% of protocol fees including:

  • 50% of the swap fees accumulated on Polaris DEX collected as protocol fees.

  • 50% of the yields on yield bearing tokens in Core Pools

• veXPOLAR does have a gauge to direct emissions to the holders if chosen. This option is capped at 10% of total emissions of XPOLAR at a given time in the inflation schedule. The overflow, if a vote goes over 10%, will go to the DAO treasury, where governance will have ownership of it.

This gives veXPOLAR holders the option to choose pools for which they have liquidity positions for increased emissions or a potential for "bribing" battles can ensue. In the same breath, the emission schedule for XPOLAR has been defined and is set permanently.

How is veXPOLAR different from veCRV?

There are a few modifications that set veXPOLAR apart:

• Instead of locking pure XPOLAR, users obtain veXPOLAR by locking 40/40/20 SPOLAR/XPOLAR/pNEAR LP. This ensures that even if a large portion of XPOLAR tokens are locked, there is deep liquidity.

• veXPOLAR's maximum locking period is 1 year, a decrease from veCRV's 4 year period. The minimum locking period is 1 week. DeFi moves quickly, and in the event governance decides to use a new voting system, this allows for a shorter, but still sufficiently long, waiting period to transition.