Gauge Weight Voting

StaikaFi Protocol implements a robust governance framework known as Gauge Weight Voting, providing token holders with the power to influence the distribution of rewards and borrowing incentives. This innovative system empowers users to actively participate in the decision-making process and shape the future of the protocol.

veSTAIKA

The core of StaikaFi Protocol’s governance lies in the concept of veSTAIKA (vote-escrow STAIKA) tokens. veSTAIKA represents voting power and is obtained by locking STAIKA tokens in 80-20 liquidity pools on Balancer. This locking mechanism ensures market liquidity for STAIKA while enabling users to actively participate in governance.

Liquidity Gauges

To further strengthen the alignment of interests between the parties engaged with StaikaFi and the protocol itself, an enhanced mechanism is implemented through the utilization of liquidity gauges. This mechanism involves incentivizing veSTAIKA holders, who have locked their Staika Governance Tokens (STAIKA) in vote-escrow, by rewarding them with STAIKA as a form of incentive. These STAIKA emissions, channeled as incentives to decentralized exchanges (DEXs), serve as more than mere rewards. It’s a strategic move that amplifies the potential of DEXs, making them key players within the StaikaFi Protocol environment.

This allocation is determined based on the proportion of Total Value Locked (TVL) within each liquidity pool. By employing this enhanced approach, the protocol ensures that participants have a vested interest in the platform’s success and are motivated to actively participate in governance activities. This enhancement strengthens the connection between StaikaFi, its stakeholders, and DEXs, fostering a collaborative ecosystem that encourages active engagement and aligns the interests of all parties involved. It should be noted that the operation of these gauges involves the GSC and a set of smart contracts deliberating on the allocation of SUSD rewards.

Borrowing Gauges

StaikaFi Protocol introduces borrowing gauges to foster user engagement and incentivize borrowing activities. Token holders can utilize these gauges to vote on STAIKA borrowing incentives tied to different accepted collaterals for SUSD loans. Through their votes, users have the power to influence the allocation of newly emitted STAIKA tokens to specific borrowing gauges, thereby making certain collaterals more appealing options for borrowing SUSD compared to others. This emission of new STAIKA tokens allocated to borrowing gauges serves as a deliberate strategy to stimulate borrowing activities within the ecosystem, promoting liquidity and efficient utilization of the protocol.

Lending Gauges

The StaikaFi Protocol plans to introduce lending gauges to incentivize lending activities and involve users in decision-making. However, this feature will not be available at the initial launch of veSTAIKA.

To activate lending gauges, integration with at least two SUSD lending platforms is required. This integration will enable veSTAIKA voters to receive SUSD for participation in voting on Lending Gauges, unlocking additional STAIKA emissions. SUSD voting incentives will be distributed proportionally to the TVL market share of specific SUSD lending pools vs. all SUSD lending pools and the SUSD Redistribution Rate TVL so as to ensure an unbiased distribution of SUSD to voters. Lending platforms will be free to actively participate in the governance process by adding additional voting incentives to StaikaFi Protocol.