(Pre-Liquidity Deployment) LD Token Reactor Voting
The next phase of Tokemak is now live. This phase is intended to familiarize TOKE stakers, aka Liquidity Directors (LDs), with the process of voting and balancing the Token Reactors.
Similar to the C.o.R.E. voting system, LDs will receive a voting purse representative of their TOKE staked. In order to earn APR, LDs must allocate their TOKE votes to specific Reactors and submit those votes via wallet signature. This change requires no action from ETH, USDC, Sushi and Uni LP stakers, only single asset TOKE stakers.
- Single asset TOKE Stakers: in order to continue earning APR on your staked TOKE, you must now allocate TOKE votes to individual Reactors via the gasless voting system
- When Token Reactor voting goes live today, you will have until the beginning of tomorrow’s Cycle to allocate your votes to continue earning rewards
- If you have TOKE staked already, votes will be present in your purse, you won’t need to unstake or migrate at this time
- Allocating TOKE to Reactors will result in a blended APR based on the state of the APRs earned in these individual Reactors, as well as your unallocated votes
- APR will fluctuate based on the balanced state of the Reactor (LP and LD side) and the overall state of the system
- The APR displayed is the expected TOKE allocation for the next Cycle, based on total TOKE staked and LP assets deposited
- If a Reactor ‘needs’ more TOKE, relative to the amount of assets deposited in the Liquidity Provider side of the Reactor, the APR will increase
- Once your votes are allocated to a Reactor, you will begin to earn rewards at the start of the next Cycle (read more about Cycles and rewards here)
- Votes to a Reactor are locked at the start of the next Cycle, however you may rearrange your votes as many times as you want leading up to the next Cycle’s start
- The voting element to specific exchanges will be introduced in the near future, also prior to active liquidity deployment
- As liquidity deployment is not currently active yet, your TOKE allocated to a specific Reactor is not being utilized as a potential backstop at this time
- Remember: Cycles currently run their course daily, but when liquidity deployment goes live we will transition to weekly Cycles
On the main Tokemak page, you’ll notice a voting purse populated with votes if you have TOKE staked in the single asset staking pool:
Similarly to C.o.R.E., you’ll allocate votes to a given Reactor and then press submit votes:
This will trigger a gasless wallet signature in order to allocate your votes to that Reactor (a gas fee will be necessary for smart contract wallets):
Once your votes have been successfully allocated to a Reactor, you’ll begin to notice the “Your Blended APR” indicator displaying your current APR:
Note: The blended APR takes into account your unallocated TOKE in its calculation.
If you were to allocate the entirety of your TOKE votes to that Reactor, you’d notice an increase in your blended APR, as well as the impact you’ve had on the offered APR:
From the Gitbook: Keeping the Token Reactors Balanced
Token Reactors incentivize a ‘balance’ between assets deposited and TOKE staked through a variable APR.
This balance will encourage a deeper set of assets deposited for various projects, and an efficient amount of TOKE directing liquidity of those assets.
If there is a significant amount of assets deposited into a given Reactor, and a minimal amount of TOKE directing that liquidity, the APR will be boosted on the TOKE side of the Reactor, encouraging LDs to deposit more TOKE and participate in directing that liquidity.
The same is true for the opposite — if there is a large amount of TOKE staked in a reactor, but a small amount of assets deposited, the Reactor increases the APR to incentivize further asset deposits.
For more information on Liquidity Direction and Rewards Logic, see the Gitbook here: https://docs.tokemak.xyz/toke/liquidity-direction/general
We’re progressing smoothly towards active liquidity deployment and are excited to introduce LD voting. As always, when introducing new elements to Tokemak, there may be minor adjustments needed. If you have any questions or concerns, please reach out to us in the Discord.
Balance the Reactors, Pilots.