veCATX

Amplifying Governance

veCATX— ERC-721 governance token in the form of an NFT (non-fungible token)

veCATX is the vote-escrowed version of CATX. Users can lock their CATX tokens for up to 2 years to get veCATX. The longer the lock, the higher the amount of veCATX voting power received.

To encourage continuous locking and sustained participation from stakeholders, the veCATX balance of users declines over time until it reaches zero at the conclusion of the initial locking period. veCATX positions can be increased, split, and resold on a secondary market.

veCATX Token Address: To be added soon.

veCATX Utility

• Protocol revenue access: veCATX holders can vote for gauges on a weekly basis, and access 100% of the trading fees and 100% of the incentives for the associated pool.

• Governance participation: veCATX holders can partake in governance and cast votes for the protocol improvement proposals.

veCATX voters receive:

• Trading fees generated by the pool(s) they vote for

• External incentives deposited for the pools they vote for

• Weekly veCATX distribution (rebase)

veCATX Specifications

• ve(3,3) Mechanics: The Olympus DAO anti-dilution method, commonly known as the rebase mechanism, is combined with Curve's vote-escrowed model in the Solidly-initiated ve(3,3) Mechanics concept. To safeguard veCATX holders from dilution and to enable a dynamic distribution of veCATX among participants over time, the anti-dilution level has been capped at 52% and decreases by 1% per week over 52 weeks.

• Gauge: A pool with dynamic CATX rewards based on veCATX weekly voting allocation. No negative voting.

• External incentives : The custom amount of tokens paid by a third party on a gauge to veCATX holders in exchange for their votes.

• Max Lock: 2 years.

• Flexibility: veCATX positions can be merged, split, and sold on the secondary market.

veCATX holders play a crucial role in determining the allocation of emissions among liquidity pools during each epoch. By voting on their preferred liquidity pool gauges, they influence the distribution of CATX emissions.

The emissions are proportionally distributed based on the total votes received by each liquidity pool. This ensures a fair and democratic process in determining the rewards.

In return for their participation, voters receive 100% of the trading fees and external incentives collected from the liquidity pool they have voted for. This incentivizes active engagement and enables voters to benefit directly from their chosen pool's activity.

Rewards

Voting holds several enticing benefits that you should consider:

1. Directing CATX Incentives: Your vote influences the allocation of CATX token incentives. By voting according to your preferences, you shape the distribution of rewards.

2. Pro-rata Share of Trading Fees: When you vote on a pool, you become eligible for a pro-rata share of all trading fees generated by that pool. This benefit applies exclusively to LPs staked to receive CATX rewards.

3. Pro-rata Share of external incentives: Voting on a pool also grants you a pro-rata share of all incentives added to the pool by third parties. Throughout an epoch, incentives can be contributed at any time. A snapshot of votes is taken at the end of each epoch (time to be set).

Remember: Casting your vote before the epoch snapshot is crucial to qualify for rewards. Remember, voting transactions do incur gas fees. If you skip voting in any week, while rewards will still go to the gauge, you'll miss out on your proportional share of those rewards.

• Trading fees and external incentives are claimable as a lump sum after the epoch has ended.

• You have to vote weekly in order to be eligible for the fees and incentives.

• You can change or reset your vote at any time.