Liquidity incentives.
Most DEXs have them.
@StaticsProtocol will not be any different.
We are not a ve(3,3) clone, however.
I have borrowed a lot from the bribes and gauge systems made famous by Curve and Aerodrome, but this is not the same.
Let us look at what we have here.
$STATICS has a Gauge Reserve.
Each week a % of this reserve is allocated to liquidity rewards.
These rewards are then distributed to market LPs who have ACTIVE RANGE liquidity.
Each week
$STATICS stakers can point their stake at any pool they choose.
For example, if I have 100K
$STATICS staked, I can direct 50K to Pool A and 50K to Pool B.
If I was the only staking allocator in the system, then the weekly rewards budget would go 50% to Pool A and 50% to Pool B.
Those rewards are then distributed to the LPs based on active liquidity like a classic gauge. If there is no liquidity to reward those rewards are recycled back through the guage.
We also built a bribe system internal to this that allows market creators to choose up to 4 reward asset slots that can be permissionlessly funded.
A creator can split these slots between LPs and
$STATICS allocators. This creates incentives for LPs as well as stakers to allocate more protocol rewards to your LPs.
If a creator wants to attract LPs, they could choose 80% LPs and 20% allocators, for example, and because there are 4 available slots, you are not stuck with one asset for incentives.
The Gauge Reserve, which holds the gauge rewards budget, releases a configurable % of its total balance each week.
If it is set to 5% and holds 10M
$STATICS, the first week would release 500K
$STATICS for protocol incentives.
This reserve will be perpetually funded by buybacks as well as from trading and activation fees received by the treasury.
See, no programmatic burns are starting to make a lot of sense, aren't they?
If this reserve grows to 20M and is set to 5%, the next week's reward budget would be 1M
$STATICS.
So not the same as ve(3,3), but similar and designed from first principles to recycle
$STATICS instead of infinite mints and infinite sell pressure.
Couple this with the fact that
$STATICS is needed to allocate as well as earn standard rewards, and things look real interesting.