Overview of EYWA DAO
EYWA DAO — is a democratic, transparent, and decentralized organization that makes strategic decisions, engages participants, and incentivizes their contributions.
The goal of EYWA DAO is to create long-term incentives for attracting sustainable cross-chain liquidity, as well as to accumulate and manage the protocol’s own liquidity to ensure better conditions for cross-chain swaps in the market.
DAO governance is based on locking the EYWA governance token into veEYWA, which grants voting power. This voting power allows veEYWA holders to participate in decision-making, receive incentives, and earn income from EYWA protocols.
Advantages of veEYWA
Locking EYWA provides you with the following benefits:
Staking income
Voting rights and participation in DAO decision-making
Incentive earnings when voting for pools
Increased rewards for providing liquidity
A share of the platform’s fee revenue
Locking EYWA (veEYWA)
veEYWA stands for vote-escrowed EYWA. Users can lock their EYWA tokens for a maximum of 3 years, in exchange for veEYWA. The amount of veEYWA decreases linearly as the chosen lock duration elapses. veEYWA cannot be transferred directly, but can be transferred within an EYWA DAO NFT. The longer you lock, the more veEYWA you receive. For details, please see the lock formula, but the simple explanation is:
1 EYWA, locked for 3 years = 1 veEYWA
1 EYWA, locked for 2 years = 0.66(6) veEYWA
1 EYWA, locked for 1.5 years = 0.5 veEYWA
1 EYWA, locked for 1 year = 0.33(3) veEYWA
The longer you lock your EYWA, the greater your voting power (expressed in veEYWA) and the higher the boost you can achieve.
NFT Boosts
Owning an EYWA NFT can affect the amount of veEYWA you receive and, therefore, your voting power. An NFT’s rarity is determined by two parameters - MV (multiplier for veEYWA), a multiplier applied to the veEYWA you receive; as well as CT (Capacity per NFT), the maximum number of EYWA tokens affected by the NFT’s influence. Check the table below for the characteristics of each rarity level:
EYWA NFTs enhance your DAO voting power, increase returns from staking, incentives, and fees, and allow trading of locked tokens. They also attract investors due to their rarity and functionality.
Here are some ways EYWA tokens benefit different types of users:
For veEYWA holders - those who have locked their tokens to gain voting power:
Boosts voting power when making DAO decisions
Boosts the voting power that can be exchanged for incentives (to distribute EYWA inflation across CrossCurve pool gauges)
Boosts staking income for veEYWA holders
Boosts the voting power used for distributing $EYWA in CrossCurve pools
Boosts income from distributing the protocol’s fee revenue among veEYWA holders
Staking Income
Staking income is the reward for long-term holding and locking of EYWA tokens. The longer and larger the locked amount, the higher your staking rewards, which are credited at the end of each epoch.
Also, staking yield depends on the total volume of locked EYWA: the more tokens locked, the lower the yield.
You can view the detailed calculations at the following link.
Using EYWA DAO NFT further increases your staking earnings.
Voting Rights and DAO Decision-Making
EYWA DAO functions include:
Managing protocol contracts: bridges, new networks, contract deployments, fees, and permissions.
Managing the DAO treasury: inflation (amount and rate), incentives for community development, expenses to attract customers and partners, emission to bonds, gauges, and grants.
All of these functions are carried out through voting.
EYWA DAO voting is divided into three main categories. Core voting affects the calculation of the voting coefficient for distributing staking rewards.
Core voting addresses:
Changes/additions to DAO, CrossCurve, and EYWA functionality;
Incentives;
Inflation and directives;
Bonds;
Grants;
Gauges.
Other voting topics:
Incentive proposals;
Incentive directions;
Gauge listings.
Miscellaneous votings:
Votings not included in the categories above.
Increased Rewards for Providing Liquidity (up to x2.5)
EYWA DAO allows certain pools to receive additional rewards from $EYWA token emissions.
When $EYWA emissions are allocated to a pool, the interface displays a range of possible APR that users can earn by staking their LP position.
The final APR boost depends on the user’s voting power (formed by locking veEYWA) and the ratio of your liquidity to the total liquidity, taking into account other participants’ boosts in a specific pool. A maximum boost can increase your yield by up to 2.5 times.
Thus, holding veEYWA allows you to achieve higher returns when providing liquidity. Using EYWA DAO NFT further increases your yield boost in these pools.
Voting for Pools and Receiving Incentives (Bribes)
Locking EYWA tokens provides unique opportunities for additional income through receiving incentives for voting on certain pools. By voting, veEYWA holders determine the distribution of liquidity and rewards among CrossCurve pools. Projects seeking to attract liquidity offer veEYWA holders incentives (various tokens) in exchange for votes in their favor.
Locking EYWA turns voting rights into a source of income: veEYWA holders choose the most profitable offers and receive rewards in tokens, cryptocurrencies, or other forms of income from the projects. The higher your veEYWA balance, the more profit opportunities you have.
Using EYWA DAO NFT further increases your earnings when voting for pools.
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