veSGT
veSGT is locked or vote-escrowed SGT-ETH SLP tokens
Note: We may be deprecating the current Sushi SLP based locking mechanism
The first ideation of veSGT
- 1.Vote on governance proposals and token emissions
- 2.Receive revenue share from staked ETH fees
We chose SGT-LP for the creation of the governance token for a few reasons.
- 1.When protocols look to partner and expose borrow limits on CDPs e.g. Rari fuse, they often largely look at the liquidity. Enabling large borrow limits helps drive more use case for the SGT token
- 2.Counting SGT LP allows high conviction investors to increase their invested amount by matching it with ETH, buying into the protocol at the market price. This brings external investors and team/early users on a more equal footing and supports decentralization
- 3.veSGT is set to be unlockable early with a penalty transferred to the DAO. By having ETH as part of the token it allows us to diversify the DAO treasury and capture profits from below market staked ETH
- 4.Vote escrowed SGT LP has some of the same benefits of OHM style protocol owned liquidity as there's a guarantee of liquidity that won't be filled
Last modified 3d ago