Bribes & Emission Voting
This this section we explain how bribes and emission voting play a role in ZeroLend One
Last updated
This this section we explain how bribes and emission voting play a role in ZeroLend One
Last updated
In ZeroLend One, we introduce an innovative mechanism to distribute rewards and incentivize participation within our lending pools: gauges and emissions. This system enhances user engagement and allows for a decentralized, community-driven approach to managing reward distribution.
The system of bribes, gauges, and emission voting brings the following advantages to the ZERO token holders.
Decentralized Decision-Making The voting marketplace ensures that the community has a direct say in reward distribution. This decentralization aligns incentives and promotes fair and transparent governance.
Enhanced Pool Performance Pools that receive more emissions attract more users and liquidity, driving overall platform growth. Users are incentivized to support and participate in pools that they believe will perform well.
Increased Engagement The voting process encourages continuous user participation and engagement. Users are motivated to stay involved in the platform to maximize their rewards and influence.
Flexibility and Adaptability The weekly voting cycles allow for quick adjustments to emissions distribution based on changing market conditions and user preferences. This flexibility ensures that the system remains dynamic and responsive.
Additional Incentives Bribes add extra incentives for users, enhancing their potential rewards. Protocols can strategically use bribes to attract more votes and emissions, fostering a competitive and vibrant ecosystem.
Gauges are the core of our emissions system. Each lending pool within ZeroLend One is assigned a gauge, which measures its activity and demand within that pool. The more active and utilized a pool is, the higher its gauge reading will be.
Emissions refer to the distribution of reward tokens to participants in the lending pools. The amount of emissions a pool receives is determined by its gauge reading. Pools with higher activity and demand, as indicated by their gauges, will receive a greater share of the emissions.
To further democratize the emissions process, ZeroLend One introduces a marketplace where users can vote on which lending pools should receive the most emissions. This system empowers users to influence reward distribution based on their preferences and the perceived value of different pools.
Voting Power Allocation Users are granted voting power based on how much ZERO or ZERO/ETH LP tokens they stake. In return, users get veZERO, which represents their voting power. The more veZERO a user holds, the greater their influence on the voting process.
Casting Votes Users can cast their votes for their preferred lending pools through the dashboard. Each vote contributes to the pool’s gauge reading, effectively increasing its chances of receiving higher emissions.
Weekly Voting Cycles Votes are cast in weekly cycles, with emissions distributed at the end of each cycle based on the gauge readings. This dynamic process ensures that emissions reflect the latest user preferences and market conditions.
Rewarding Voters To incentivize participation, voters are rewarded with additional ZERO tokens. The more a user participates in the voting process, the more rewards they can earn, promoting active engagement and decentralized decision-making.
In the competitive landscape of DeFi lending, protocols can use various strategies to attract more liquidity and participation. ZeroLend One introduces a unique feature: the ability for protocols to offer bribes to voters. This mechanism allows protocols to incentivize users to vote for their lending pools, increasing their chances of receiving higher emissions.
Bribes are additional incentives offered by protocols to ZeroLend voters in exchange for their votes. This system enables protocols to directly influence the voting outcomes and secure more emissions for their lending pools.
Protocol Proposals Protocols looking to boost their pool's emissions can propose bribes through the ZeroLend One platform. These proposals detail the amount and type of bribe offered, such as additional tokens or other rewards.
Bribe Pool Creation Protocols create a bribe pool, funding it with the promised incentives. The bribe pool is transparent and visible to all users, ensuring fairness and transparency.
Voter Participation Users can view available bribes and choose to vote for pools offering the most attractive incentives. By casting their votes for these pools, users earn bribes in addition to their regular rewards.
Bribe Distribution After the voting cycle ends, bribes are distributed to users who voted for the incentivized pools. This process ensures that users are compensated for their participation and influence
