Basic Overview
Last updated
Last updated
Reactor drives positive-sum interactions to maximise rewards for ecosystem participants; liquidity providers (LPs), protocols and veRCT voters.
Every epoch (1 week), veRCT holders vote to decide which pools will receive RCT emissions. The amount of emissions received by each pool is proportional to the amount of votes the pool receives.
This generates RCT rewards for LPs, which builds liquidity for protocol and core ecosystem pools.
To vote with veRCT, you must lock RCT up to a maximum of 2 years. Voters are rewarded (proportional to locked amount) with trading fees and voting incentives generated by the pool/s they vote for.
Protocols deposit voting incentives to gain votes to their pools and to attract LPs to build liquidity through RCT emissions, and ultimately enables traders to swap their tokens.
This ensures that RCT emissions are constantly being utilised to build liquidity for pools that generate the most rewards for veRCT voters of time.