> For the complete documentation index, see [llms.txt](https://hyperstable.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hyperstable.gitbook.io/docs/protocol/lock.md).

# Lock

Hyperstable uses two tokens to manage its utility and governance:

[`$PEG`](/docs/usdpeg/token.md) (ERC-20), is distributed to liquidity providers through emissions and; 

[`$vePEG`](/docs/usdpeg/token.md)(NFT), which is used for Governance, to vote on Emissions, and receive [Incentives](/docs/protocol/incentivize.md). vePEG is protected from dilution via [Rebases](/docs/usdpeg/rebase.md).

**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**\
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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\
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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. \
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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.