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 all protocol revenue generated via interest and receive Incentives. vePEG is 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.