Lock

Hyperstable uses two tokens to manage its utility and governance:

$PEG (ERC-20), is distributed to liquidity providers through emissions and;

$vePEG(NFT), which is used for Governance, to vote on Emissions, to earn (100% of) protocol revenue and receive Incentives. vePEG also gets protected from dilution via Rebases.

Vote Escrow

The ''ve'' in vePEG stands for : Vote Escrow, which is a mechanism used in decentralized governance to ensure fairness and transparency in decision-making. Any PEG holder can vote escrow their tokens and receive $vePEG in exchange. With Hyperstable, we call this Locking.

Locking The maximum lock period is 1 year, following the linear relationship shown below:

100 PEG locked for 1 year will become 100 vePEG 100 PEG locked for 3 months will become 25 vePEG The longer the locking time, the higher the voting power of the underlying locked balance. Additional PEG tokens can be added to a Lock at any time. Additionally, Hyperstable Locks can be set into Auto-Max Lock, which are treated by the protocol as being locked for the maximum duration of 1 year, and their voting power does not decay. The Auto-Max Lock feature can be turned on and off for each Lock.