Dual-ve tokenomics

Governance overview

Problem

  • Current ve and ve(3,3) tokenomics lack unique equilibria
  • Users try to maximize their OWN payoff only
  • It's (nearly) impossible for users to engage in an optimal "locking-strategy" of their ve-Tokens
  • Lack of equilibria is a big problem because it introduces fragility and leads to uncertainty, unpredictability, and instability of the entire ve-design - and the protocol itself. The longer it operates, the higher the likelihood of collapse.

Solution

  • USDFI's novel dual-ve design fixes the lack of equilibria: Here, users are able to vote escrow the governance token veSTABLE or the stablecoin veUSDFI
  • With dual-ve, users can cooperate to yield greater benefit to ALL participants. It's a non-zero-sum game!
  • Key to success: The design enforces usability and long-term stability of USDFI
  • Users can optimize for risk, vol and incentives of the protocol, turning STABLE into most efficient governance token available today!