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Dusa v2

Dusa v2 adopts a ve(3,3) design. Liquidity Providers (LPs) earn $DUSA emissions, while voters who lock $DUSA into veDUSA direct where emissions go and receive 100% of protocol trading fees plus any voter incentives (“bribes”).

TL;DR​

  • Epoch = 7 days.
  • LPs earn: $DUSA emissions (not swap fees).
  • Voters (veDUSA) earn: 100% of prior-epoch trading fees + any incentives for the pools they vote for.
  • Votes determine the next epoch’s emission split across pools.

How an epoch works​

  1. Vote — $veDUSA holders vote to direct the next epoch’s emissions across pools.
  2. Trade — During the current epoch, pools accrue trading fees.
  3. Distribute (end of epoch)
    • LPs: Receive the epoch’s $DUSA emissions for their pool(s), pro-rata within each pool.
    • Voters: Receive 100% of the protocol trading fees from the previous epoch + any current-epoch incentives for the pools they voted for.

Example timeline
If you vote in Epoch N:

  • Your vote sets emission weights for Epoch N+1.
  • At the end of Epoch N, you receive:
    • Fees from Epoch N-1 (protocol trading fees).
    • Any incentives posted for Epoch N on pools you voted for.

Roles & tokens​

  • $DUSA (ERC-20) — Utility & emission token.
  • $veDUSA (ERC-721) — Governance/voting token represented as an NFT (“veNFT”).

Anyone can lock $DUSA to mint a $veDUSA NFT. You can add more $DUSA to the same veNFT at any time.

Lock length → voting power​

Lock up to 4 years. Voting power scales linearly with lock time:

  • 100 $DUSA locked for 4 years → 100 $veDUSA
  • 100 $DUSA locked for 1 year → 25 $veDUSA

Permanent max-lock option
A lock (veNFT) can be set to the maximum (4 years) and treated as permanently max-locked: voting power is always counted at the max and does not decay.

Emissions (for LPs)​

  • Weekly $DUSA distribution starts at 39,000 $DUSA per epoch. Governance can update this parameter.
  • Emissions are allocated to pools by votes (higher votes → higher share of emissions).
  • Within each pool, LPs receive a share of that pool’s emissions pro-rata to their provided liquidity (and pool-specific mechanics such as time in-range, where applicable).
  • LPs do not receive swap fees. Their rewards are $DUSA emissions only.
  • Rewards are auto-distributable at the end of each epoch.

Note: The $veDUSA supply does not change the weekly emission total; it only affects how emissions are split across pools via voting.

Fees & voter rewards (for veDUSA)​

  • 100% of protocol trading fees are paid to $veDUSA voters (not LPs), based on how they voted.
  • Fees distributed at the end of an epoch correspond to the previous epoch’s trading activity (see timeline above).

Voter incentives (“bribes”)​

Anyone can attach incentives to a pool for a given epoch to attract votes.

  • Incentives are paid to voters who vote for that pool during that epoch.
  • More incentives → typically more votes → more emissions flowing to that pool → higher $DUSA rewards for its LPs.

Key parameters (defaults)​

  • Epoch length: 7 days
  • Initial weekly emissions: 39,000 $DUSA (governance adjustable)
  • Fee recipients: 100% to veDUSA voters
  • LP fee share: 0% (LPs earn emissions only)
  • Max lock length: 4 years (option to treat as permanent max-lock with no decay)

Glossary​

  • Epoch — Fixed 7-day cycle for votes, fees, incentives, and emissions.
  • Emissions — New $DUSA distributed to LPs, allocated to pools by votes.
  • Fees — Trading fees generated by swaps; paid 100% to voters.
  • Incentives (Bribes) — External rewards offered to voters for voting for a pool.
  • $veDUSA — Vote-escrowed $DUSA in NFT form; used for voting and earning fees/incentives.