CVG Locking
Last updated
Last updated
Locking CVG allows users to vote for gauge weights, participate in governance and claim shares on treasury yields. When a user locks CVG, this lock is tokenized as an NFT. This NFT is associated with an amount of veCVG, mgCVG and/or ysCVG, allowing anyone who holds it to vote and/or claim treasury rewards after each Treasury Distribution Event (TDE). Users are be able to trade those NFTs on the open market.
When a lock is created, it is offered to choose the percentage of CVG that will be allocated to veCVG, as well as the percentage of CVG that will be allocated to ysCVG. Users can choose to allocate the full CVG amount to either veCVG or ysCVG only. In order to obtain mgCVG, it is needed to allocate CVG to veCVG. Locking to ysCVG only won't generate any mgCVG.
For example, if one locks 1,000 CVG and chooses a 50/50 ratio, 500 CVG will be used to compute veCVG and mgCVG amounts, and 500 CVG will be used to compute ysCVG amount.
A lock may be extended in amount (amount of CVG locked) and in duration at any time. The maximum locking time is 96 cvgCycles (approx. 1,8 years). Users may iterate on an existing locked position or create a new one at any time. A lock may end only on a tdeCycle (cvgCycle which are multiples of 12). When a lock expires, the NFT must be burned to redeem CVG.
To summarize:
Locked CVG positions are tokenized as NFTs;
Users must choose their allocations betweenveCVG and ysCVG;
Locking to veCVG generates mgCVG;
veCVG is used to vote on gauge weights and CIP;
mgCVG is used to participate in metagovernance;
ysCVG is used to claim shares on treasury yields;
A lock may be extended in amount and in time;
A lock may only end on a tdeCycle;
Locked positions are tradable.
