Understanding gauges
Last updated
Was this helpful?
Last updated
Was this helpful?
In Splash Protocol, the inflation of SPLASH tokens goes to liquidity providers through the gauges system. The following diagram shows how the Splash inflation mechanism works:
Voting occurs continuously during the SPLASH emission period and is updated every seven days. veSPLASH holders can adjust allocation weights and divide their voting power among one or more gauges.
Voting occurs on the Splash Protocol Dashboard, which will be available when the Vote Escrow system launches.
Gauge weight translates into how much of the weekly SPLASH inflation a gauge receives. This SPLASH emission is distributed across all liquidity providers according to their supplied value.
For example, if we have only 3 gauges in the system and one of them has 50% weight, then its weekly reward rate will be calculated as weekly_emission_rate * 0.5.
Anyone can create a voting process to add a gauge on top of any pool. veSPLASH holders make the decision through the appropriate voting process.
The process will be described here once the Vote Escrow system is launched.
Our development team will create several gauges on top of the most performant liquidity pools before the Vote Escrow system launches. Stay tuned.
