Dilution Protection (Rebase)

A key function of the ve(3,3) model is the dilution protection rebases, which occur per epoch, to incentivize users to lock their tokens early on. The rebase is a nod to the OHM (3,3) model that was popularized the past couple years.

A practical example to give you a better understanding of how the system works:

EXAMPLE: 25% Dilution Protection:

Note: RA has a 25% rebase, increasing 1% per epoch until 50%

You have 1000 RA, which is 10% of the total supply of 10,000 RA at the time.
During this epoch, another 10,000 RA was emitted to gauges, pushing the total supply of RA to 20,000
You can claim your rebase after the epoch ends and receive 250 extra RA added to your position. This makes you now have 6.25% of the total supply, at 1250 RA out of 20,000 RA

The above is a crude but straightforward example that should simply explain the ideology and functionality of the rebase.

Previousve(3,3) Fundamentals NextveRA (veNFT) [WIP]

Last updated 1 year ago

Dilution Protection (Rebase)

A practical example to give you a better understanding of how the system works:

EXAMPLE: 25% Dilution Protection:

Note: RA has a 25% rebase, increasing 1% per epoch until 50%

You have 1000 RA, which is 10% of the total supply of 10,000 RA at the time.
During this epoch, another 10,000 RA was emitted to gauges, pushing the total supply of RA to 20,000
You can claim your rebase after the epoch ends and receive 250 extra RA added to your position. This makes you now have 6.25% of the total supply, at 1250 RA out of 20,000 RA

The above is a crude but straightforward example that should simply explain the ideology and functionality of the rebase.

Previousve(3,3) Fundamentals NextveRA (veNFT) [WIP]

Last updated 1 year ago