veZLK

veZLK

The governance of Zenlink relies on locked voting ZLK, also known as veZLK, which enables a higher degree of decentralization. By utilizing veZLK, ZLK holders can access a range of features that enhance the utility of their tokens.

One of the key functions of veZLK is to reduce the circulating supply of ZLK tokens, thereby increasing token stability and the overall resilience of the protocol. This makes veZLK a crucial tool for maintaining the long-term health and success of the Zenlink ecosystem.

Holding veZLK and participating in vote-driven incentives entitles you to the following benefits:

1. Vote to channel $ZLK incentives into a pool

2. Earn voter's APY (40% of trading fees from the pools you voted for).

3. Boost LP rewards (up to 250%).

Getting veZLK

Lock ZLK to receive veZLK. The value of your veZLK is proportional to the amount staked and the duration of the stake (up to 2 years). A tutorial is available here. Each wallet is associated with a single veZLK expiration date.

The value of your veZLK decreases over time and drops to zero once the lock period ends, after which your staked ZLK will be unlocked.

To increase the value of your veZLK, you can choose to extend the lock period or increase the amount locked.

Incentive Channeling

veZLK powers the incentive channeling mechanism on Zenlink Eden. veZLK holders vote and direct the rewards flow to different pools, effectively incentivizing liquidity in the pools they voted for.

Intuitively, the higher the value of your veZLK, the more incentives you are entitled to channel.

A snapshot of all votes is taken at the start of every epoch on Thursday, 00:00 UTC and the incentive rates for each pool will be adjusted accordingly.

Voting for a pool also entitles vePENDLE holders to 40% of the swap fees collected by the pool, distributed pro rata between all voters of the pool.

LP Reward Boost

If you hold veZLK and provide liquidity in a pool, all ZLK incentives and rewards for your LPs will be further boosted, up to 250%, depending on your veZLK value. To achieve the maximum boost, you must hold a proportion of veZLK equivalent to your percentage of LP holdings in the pool.

Although your veZLK value will decrease over time, your LP boost rate is calculated at the time of the initial boost application. The boost rate will remain constant until you update your LP position, at which point the boost rate will adjust according to your current veZLK value.

To receive boosted rewards, you should first lock your ZLK into veZLK before providing LP. If you have already provided LP and want to use veZLK to boost your rewards, you must manually trigger the boost after voting for the pool.