veELCT is ProtoFi's governance token, which operates on a vote locking model. For veELCT users, the primary benefits include increased farming rewards, voting power, and participation rewards (bribes).
To get veELCT, investors must lock $PROTO or $ELCT for a period ranging from 2 weeks to 18 months.
Locking $PROTO / $ELCT for a longer timeframe yields a larger amount of veELCT.
Locking ELCT yields double the veELCT compared to locking PROTO.
Token and Amount
The amount of veELCT slowly decreases in the investor's wallet until it reaches 0. This signifies that the lock period has ended and the investor can withdraw their tokens.
veELCT is a non-transferable token.
1 veELCT = 1 Vote
veELCT holders can vote once a week on farm emission allocations.
veELCT holders can vote on protocol improvement proposals through snapshot governance.
How and where to use your voting power?
After veELCT is acquired, investors can distribute their votes among one or different farming pools where they have the largest share, in order to drive as many rewards to those pools, and maximize their farming gains. Click here to learn how you can vote for your preferred pools.
Votes are applied on a weekly snapshot basis, at the end of each voting round. Meaning, votes can be changed at will and at any time, but the vote distribution at the time of the snapshot determines how the voting power is distributed.
Farm Boosted APYs
veELCT holders get boosted PROTO farming rewards.
A max boost of up to 2.5X can be received in farming rewards. For example, a farmer, with no veELCT, could farm FTM-USDC for 100% APR. Whereas a farmer with sufficient veELCT and max boost could farm FTM-USDC for 250% APR.
The farm boost is determined by the following equations:
While you can vote for your preferred pool, what if you received additional rewards for voting for other pools? Bribes are incentives given to veELCT holders in exchange for their vote for a specific farm. Anyone can attach bribes to a farm and holders who vote for it are then able to claim rewards.
For example, Protocol X could provide 50,000 FTM as bribes on the X-FTM pool, incentivizing veELCT voters to vote on the X-FTM pool. veELCT holders who vote on it would all share the 50,000 FTM, proportional to their share of the votes on that pool.
Bribes are distributed in full, with no vesting or lockup, on a weekly snapshot basis, at the end of each voting round.