Voting Escrow

Participating in governance and earning bribes and other potential incentives, requires an account to have locked their liquidity pool tokens, lpETH. Users can choose a lockup between 1 week and 52 weeks, with improved rewards and more voting weight for longer lockups. Voting weight resulting from the locked "lpETH" is represented as "veLpETH". A non-transferrable ERC20 token of which the balance decays over time. VeTokens are both used for voting but also value-accrual, meaning the longer your remaining lockup the higher your voting weight but also the higher your share of any incentive pool.

Dual Governance

Once the governance token goes live, governance will be subject to dual governance, where both lpETH or the governance token can be used.