Gauges Demystified
Today, we will take a look at Tenet’s native gauge system, deep dive into how it works and release our audit report covering our gauge system. This will prepare you for the upcoming Tenet Wars once we go live on mainnet.
What are gauges?
Gauges were a concept originally introduced by Curve to allow the distribution of rewards to different LP positions on their DEX via the voting of locked CRV (veCRV) on their gauges.
Tenet takes this concept to new levels by integrating gauges directly into the rewards distribution mechanism for the chain. This means that those that lock TENET for veTENET will be able to vote on the distribution of rewards from the native rewards pool.
On inception, this will include a number of different areas that can be rewarded:
- Block Rewards — veTENET holders will decide on which LSDs will receive higher incentives for being restaked to Tenet network. The more veTENET voted on a gauge, the more rewards are distributed to that restakers of that LSD.
- Stability Module — veTENET hodlers will also be able to vote on the amount of rewards to be distributed to those staking their LSDC into the Stability Module, allowing for additional yield to be earned on top of liquidation fees.
- DEX Liquidity — Another key component of Tenet protocol is the provision of liquidity on Tenet DEX for LSD:TENET pairs (for rewards compounding) and LSD:wtLSD pairs (for efficient converting without waiting for the unbonding period). Those providing liquidity on key pairs on Tenet DEX will also be eligible to receive TENET rewards from the gauge system.
Tenet’s chain level governance system, utilising our DiPoS consensus, will be able to vote on adding additional gauges in the future, including not only for native Tenet products but also third party protocols both on Tenet network and on other networks where Tenet’s products are utilised.
You can check the audit results for our Native Gauge system here
How to lock veTENET
On the Tenet Dashboard, you will need to navigate to the veTenet section, and from there in the Lock tab you will be able to lock-up your TENET to receive veTENET.
Here you can select the duration of your lock, up to a maximum of 2 years, and then the amount of TENET you would like to lock (the longer you lock for, the more voting power you receive).
Please note that each account can only have a single lock — you can increase the duration of the lock or increase the amount of locked TENET but it will not be possible to create a new lock with a shorter duration on the same account.
How to vote on gauges
On the vote tab, you will be able to select the gauge you wish to vote for, and the percentage of votes you wish to assign to this gauge. You can then cast your vote which will apply for the next epoch and going forwards unless you change the weights in the future. On the right you can see the current distribution based on all voting, as well as how your votes are distributed across different gauges.
How to claim rewards
veTENET is a fee bearing token. It earns fees from across the Tenet ecosystem, including a share of the transaction fees on the network, mint and redeem fees from LSDC and vault management fees from the aggregator protocol.
On the voting dashboard, you can see all the fees you have accrued so far, which can be in any of the LSDs restaked to Tenet. You can also choose whether you wish to claim all of the fees, or individually claim the fees accrued in each token.
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That’s it for our native gauge system! Soon users will be able to test this out on our upcoming public testnet and get used to the gauge system prior to our mainnet launch. Stay tuned for further announcements!
