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Overview

Sprinx uses SPX as a utility token and veSPX as governance token.

SPX is used for rewarding liquidity providers through emissions. veSPX is used for governance. Any SPX holder can vote-escrow their tokens for up to 4 years and receive a veSPX NFT in the protocol

Core Mechanics​

The protocol is designed to enable token swaps and generate fees (from Traders) by attracting liquidity.

Every epoch liquidity providers (LPs) receive SPX token emissions proportionally to the votes the pools accumulate. Only staked (in the protocol gauges) liquidity receive emissions.

Participants can lock their SPX to be able to vote on the next epoch distribution of emissions, becoming veSPX Voters. veSPX Voters are rewarded (proportionally to locked amounts) for their votes with 100% of the protocol trading fees from the previous epoch and any additional voters incentives from the current epoch.

Protocols on Somnia looking to incentivize liquidity can incentivize veSPX voters (i.e., deposit token rewards for voters of a pool) and accumulate veSPX to vote directly.