Bring on the Bribes!
The Hummus Exchange is about to take a huge step in decentralization, utility, and rewards. This is a big deployment.
The team is excited to introduce voting gauges and the bribing mechanism!
- Liquidity providers *must* migrate to continue to receive rewards.
- veHUM holders will be able to vote for where protocol staking rewards (yield) go.
- The more votes a pool gets, the more HUM and METIS emissions are directed to it, thereby resulting in a higher yield for that pool.
- When a user applies a new allocation vote, it gets applied immediately. Also, there’s no cooldown for users.
- Bribes are additional incentives for voters that can be offered by other users, often other groups such as dApps.
- The addition of gauges and bribes gives HUM tokens even more utility.
- HUM token rewards emitted to staked liquidity providers in the main and alt pools have been reduced from 3 million to 2 million tokens per month.
- Not a veHUM holder yet? Stake HUM to acquire veHUM at https://app.hummus.exchange/stake.
What Is a Gauge and How Do I Use It?
Anyone who stakes HUM tokens generates veHUM tokens. With our new gauges, veHUM holders will be able to vote for where protocol staking rewards (yield) go.
Think of a DeFi gauge like an antique balance scale in which each bowl represents a currency pool on Hummus Exchange. That is, there’s a bowl (pool) for USDC, another bowl for BUSD, yet another for USDT, and so on. Users can place their veHUM tokens in these bowls as they wish. As veHUM tokens are added to the bowls the overall balance readjusts. The ratio of the weights across all of the bowls then dictates where the Hummus Exchange’s yield rewards go, with more rewards going to the heavier bowl (pool) and fewer rewards to the lighter ones. As users allocate and reallocate their veHUM tokens, the balance changes and so do the yield rewards across the pools. Voila!
If you already have veHUM tokens, then you’re ready to use the gauge. Not a veHUM holder yet? Stake HUM to acquire veHUM at https://app.hummus.exchange/stake.
Users with veHUM will be able to vote where emissions–also called rewards, which are currently paid in HUM and METIS tokens–should go for the main pool and the alt pool. One veHUM token equals one vote. The more votes a gauge receives, the greater its weight, and therefore the greater the rewards given in that pool, and the lesser the rewards in the other pools. Users can divide their veHUM vote across multiple pools.
Put simply, the more votes a pool gets, the HUM and METIS emissions are directed to it, thereby resulting in a higher yield for that pool.
Immediate Pool Re-Weighting
When a user applies a new allocation vote, it gets applied immediately. There is no cool-down period between votes to make gauge voting more agile. You can change your vote as early as you wish to.
If you want to get technical, the pool’s rewards emission rate is determined by the following formula:
Emission RateA = EmissionRateTOTAL x (WeightA / WeightTOTAL)
In other words, rewards to liquidity providers go where the votes go.
Bribes: Let the Hummus Wars Begin!
Bribes are additional incentives for voters that can be offered by other users, often other groups such as dApps. These bribes are meant to attract more votes from veHUM holders.
For example, say there’s a fictional decentralized stablecoin protocol called GodDAO whose stablecoin token is GOD and whose governance token is ZEUS. It is probably in GodDAO’s interest to increase circulation and availability of GOD tokens. Let’s also say that Hummus Exchange includes GOD in its main pool, but usage is low 🙁. DeityDAO might decide to add 100,000 ZEUS tokens to the Hummus bribe feature for the GOD pool to incentivize DeFi users to provide more liquidity there, in turn decreasing swap fees involving GOD and increasing GOD’s usage and circulation in the ecosystem.
As we roll out the bribe feature, expect to see protocols taking advantage of this incentive structure to attract users to their offerings.
HUM Token Emission Adjustment
Hummus token rewards emitted to staked liquidity providers in the main and alt pools have been reduced from 3 million to 2 million tokens per month.
The new gauges substantially increase the utility of HUM and veHUM tokens and therefore their value. Decreasing inflation induced by liquidity incentives will make HUM more valuable, as well.
Even More HUM Utility
The addition of gauges and bribes gives HUM tokens even more utility. To date, HUM tokens already help users achieve incredible yields on single-sided stablecoin deposits. Now, users can benefit from veHUM pool voting and chasing bribes.
Feel like you might’ve been left behind? Don’t worry–the team is working on ways to help you catch up 😉
About the Metis Marathon
Our METIS rewards are made possible by the generous support of the MetisDAO Foundation’s Metis Marathon, a 26-week long builder incentive program that aims to incentivize a fierce development of the Metis ecosystem. Besides introducing some of the top DeFi protocols by TVL to our ecosystem, the Marathon will also help create a native powerhouse by directly incentivizing some of Metis’ most innovative native dApps.
About Hummus Exchange
The Hummus Exchange protocol is a single-side and decentralized AMM designed for exchanging stable cryptocurrencies on the Metis blockchain.
Users can swap stablecoins on the Hummus Exchange with extremely low slippage and fees. They can also stake stablecoins to generate yield, and stake HUM tokens alongside to boost that yield.
Come check us out! Stop by to swap or stake around for longer.