๐Ÿค‘ Vote incentives distribution

๐Ÿค‘ Vote Incentives Distribution

๐Ÿ“š Main Concept

All users who voted through Stake DAO via the meta-governance, for underlying protocols inflation, or delegated their voting power (in this case, the Stake DAO team votes for them), are eligible for vote incentives from Votemarket, provided an incentive exists for that period for that gauge.

Users benefit from the veToken voting power of the Liquid Locker. Each week, Stake DAO claims rewards for that liquid locker and swaps them into corresponding sdTokens. If the peg is too low, it swaps using the pool; if not, it uses a regular deposit on the liquid locker.

Every two weeks, sdToken rewards are distributed to users using a merkle distribution (opens in a new tab). This distribution is proportional to how much they voted and how much their voted gauge earned. The votes are taken just after the end of the period (1 week) to ensure the correct voting power is captured.

๐Ÿค– Automation and Transparency

All these processes (claiming, swapping, distributing to the merkle) are automated and executed by a smart contract (opens in a new tab). This smart contract takes a 2% fee when swapping from token to sdToken, which is used for paying gas.

The generated reports are public and available on this repository (opens in a new tab).