# Gauge

A Gauge is a smart contract that takes in LP tokens and rewards the depositors with [PEG](https://hyperstable.gitbook.io/docs/usdpeg) tokens and other additional [Incentives](https://hyperstable.gitbook.io/docs/protocol/incentivize).\
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Gauges are a governance mechanism that allow [vePEG ](https://hyperstable.gitbook.io/docs/usdpeg)holders to allocate PEG Emissions via voting. Gauges make it possible for the community to self-direct the growth of the Hyperstable ecosystem by giving each vePEG token holder the power to direct [Liquidity Provision](https://hyperstable.gitbook.io/docs/protocol/farm) to certain pools.