Rewards

What rewards do you get for holding veVMEX?

Balancer LP Token Rewards

One of the rewards you get for holding veVMEX is the same Balancer Pool Token (BPT) used to lock. This means that when you claim these rewards in the veVMEX reward pool, you're not only getting VMEX rewards, but also WETH, since the LP token is for an 80/20 pool.

These rewards only accrue when lockers of veVMEX exit early from their locking period. Their penalty is redistributed to current veVMEX lockers.

Penalties are calculated based on the amount of time left in the lock and decreases linearly, except for a penalty that has over 3 years left which always incurs a 75% penalty. So, the closer you are to unlocking, the less of penalty you'll pay for unlocking early. If your locking period is over, there is no penalty.

dVMEX

dVMEX is emitted from gauges, and is the token received for staking in gauges and tranches. dVMEX is what we call an "Option Token" or "Discount Token", which means that it gives the holder the right to purchase VMEX at a steep discount to market price. So, if you're are trying to accumulate $VMEX, you can either buy it at market price, or you can accumulate dVMEX, and then exchange that dVMEX for VMEX at a much cheaper rate. For context, the discount at the time of writing is about 90%. This means that you will be saving 90% on each VMEX token purchased.

In addition to gauges rewards, dVMEX is also given as another reward token to veVMEX holders in a separate reward pool. The gauges work on a boosting system, which allow users to boost their gauge rewards by holding veVMEX. A "max boost" is defined as having a 4 year lock, which is the maximum a user can lock for. Anything under the max boost is considered "underboosted." When claims happen to underboosted positions in gauges, the rewards are then sent to the dVMEX reward pool for veVMEX holders to claim. Further detail about how this works will be provided on the next page.