🔌Gauge-Plugins
v33-X introduces a refined gauge system with plugins, incorporating significant adjustments that make it adaptable to any yield-bearing assets.
Last updated
v33-X introduces a refined gauge system with plugins, incorporating significant adjustments that make it adaptable to any yield-bearing assets.
Last updated
v33-X uses a generalized version of the ve33 Gauge system, capable of supporting any yield-bearing asset. This allows for various revenue streams, such as token emissions, swap fees, interest, or even game revenue. The Gauge-Plugin's flexibility and adaptability to different AMM LP tokens and yield types make it a versatile system catering to a wider range of DeFi use cases and strategies. Additionally, it can remain competitive as new technology emerges.
Familiar to many, when liquidity providers deposit their LP tokens into a gauge in Solidly, they earn SOLID tokens. Solidly gauges hold LP tokens, deposited by farmers, which accrue swap fees within the gauge. The gauge contract harvests these swap fees and sends them to its bribe contract. Any veSOLID holder that casted votes for this specific gauge then receives a share of these swap fees from the Bribe contract. In the example below farmers deposit USDC-FTM Solidly LPs into the gauge to earn SOLID. The gauge accrues USDC and FTM from swap fees, which get claimed and sent to the bribe contract for voters.
The original Solidly gauges are limited to LPs from the Solidly AMM. To accommodate a wider range of assets and enhance the platform's utility and flexibility, the generalized gauge-plugin was developed.
Gauge-plugins expand potential applications of gauges and can attract a diverse range of users, projects, and assets, resulting in a more inclusive and versatile ecosystem. In v33-X, gauges are no longer limited to a single AMM's liquidity pairs. It enables the creation of plugins for any yield-bearing asset.
The plugin takes over responsibilities originally held by the gauge: determining the fate of deposited tokens, such as staking them in a farm or merely holding them in the contract. It also dictates the mechanism to extract fees to its bribe contract. The gauge is now only responsible for distributing oTOKEN rewards to farmers based on their plugin balances.
The diagram below shows a plugin for the Solidly AMM that mimics the Solidly gauges. Farmers deposit Solidly LP tokens into the plugin, the plugin holds those LPs, which accrue swap fees, the swap fees are claimed and sent to the bribe contract for voters.
The plugin can be adapted to harvest token emissions as opposed to just swap fees. Imagine a scenario where the plugin is tailored for deposits to Solidly gauges. Upon a farmer depositing a Solidly LP into the plugin, the plugin then deposits the LP into its respective Solidly gauge, which then starts earning SOLID rewards. The plugin's subsequent role is to harvest these SOLID tokens, directing them to its bribe contract as voter rewards. In the diagram below voters would now earn SOLID for voting for this plugin rather than USDC and FTM like in the diagram above.
