🏦 Votemarket
Vote Wisely, Earn Handsomely
Votemarket V2 is under development! Stay tuned for updates...
🤔 The Purpose
Votemarket is a platform designed to empower individuals and protocols by incentivizing voters to cast votes for specific gauges. This influences the direction of reward inflation in veTokenomics protocols, a crucial aspect in the ongoing pursuit of increased liquidity in pools. This concept, a central theme in the Curve Wars, has been adopted by various veTokenomics protocols. Stake DAO has chosen to implement Votemarket entirely on-chain for the sake of transparency and efficiency, providing both voters and incentivizers with a clear understanding of the process.
⚙️ How does it work?
- Votemarket is a smart contract, with one contract per veToken protocol. It reads the underlying gauge voting contract to track the votes a user has cast in the current period. Rewards are then distributed based on the amount per vote set by the incentivizer and the number of periods remaining.
- The contract operates in 7-day periods, ending every Thursday at 12 am UTC. Users can claim their incentives at the change of the epoch, with the amount based on their voting engagement and capped by the maximum reward per vote.
Due to the limitations of the underlying protocol voting contracts, users are required to claim their rewards weekly. This is because Votemarket is entirely on-chain and solely relies on it.
🔑 Key Features
- On-chain: All transactions related to voting incentives are on-chain, enabling composability and automation.
- Flexible: Vote incentivizers can modify their voting incentives, including updating parameters for existing vote bounties after the first week.
- Reward Management: Incentivizers can set a maximum price per reward for efficient voting.
- No Top-Up: Incentivizers can choose the number of periods in advance, eliminating the need for weekly top-ups.
- Blacklist: Incentivizers have the ability to specify addresses that will be excluded from receiving incentives. This feature is especially useful in cases where incentivizers are voting for themselves, preventing them from monopolizing their own rewards.
💸 Fees and rewards
Each Votemarket contract (one per protocol) has its own fee percentage. All fees are collected when a user claims their rewards (a percentage goes to Stake DAO).
| Protocol | Fees |
|---|---|
| Curve | 4% |
| Balancer | 2% |
| Frax | 4% |
These fees are used to cover the gas costs for VoteMarket's weekly operations, and to maintain protocols operations.
📝 In Summary
Step 1
Incentivizer creates a vote incentive on Votemarket. They specify the gauge, number of periods, reward token, amount, and blacklist.
Step 2
User casts a vote for the gauge for the next period.
Step 3
After the period
User claim rewards on Votemarket.
Votemarket reads the underlying voting contract, and deduce a fee on the claimed amount.