Voting
Last updated
Last updated
Voting is based on veABRA tokens and primarily affects user rewards in the next epoch:
For Liquidity Providers in Strategies:
The share of the weekly ABRA emission allocated for rewards is determined. Generally, the more votes a strategy receives, the higher its APR. Additionally, APR is influenced by the strategy's TVL (Total Value Locked) and the ABRA token price.
For Voters Who Vote for a Strategy or Underlying Yield Source:
Parameters for rebalancing liquidity across yield sources within a strategy are determined, affecting future UPR. More votes for a specific source mean more liquidity allocated to it after rebalancing, leading to higher UPR collection.
The share of future UPR rewards, which is proportional to the voter's share of the total votes for a yield source.
As a result of the voting, three sets of parameters are determined for the next epoch:
The more veABRA tokens user has, the more voting power they can allocate during the current epoch. Users do not spend veABRA tokens when voting, but the number of votes is limited by the veABRA amount, meaning there is a limited number of votes available per epoch. At the beginning of each new epoch, the users are able to re-cast their votes among yield sources.
There are two voting modes on the Cadabra platform:
For entire strategies – Underlying protocols receive votes based on their share in the total liquidity of the strategy. The more funds held in a specific underlying source, the more votes it will receive.
For specific underlying protocols – Each strategy will receive the sum of all votes for its underlying protocols.
For example, in USD strategy, there are two yield sources: AAVE and Thena. AAVE holds 30% of the total strategy liquidity, while Thena holds the remaining 70%.
Voting for a Strategy
A user allocates 200 veABRA to the strategy.
The user's votes are distributed as follows:
200 veABRA are counted for ABRA distribution to the strategy among all existing strategies
60 veABRA are counted to the AAVE wrapper
140 veABRA are counted to the Thena wrapper
Voting for Yield Sources
A user allocates 100 veABRA to AAVE and 100 veABRA to Thena.
The votes are summed at the strategy level:
200 veABRA are counted for ABRA distribution to the strategy
100 veABRA are counted to the AAVE wrapper
100 veABRA are counted to the Thena wrapper
Voting is based on lockups — ABRA tokens locked for a specific period. A lockup is created each time a user locks tokens at a specific time. It contains information about the number of locked ABRA tokens and the lockup duration.
Since each lockup has an unlock date and supports multichain functionality, certain voting rules apply:
Voting is conducted using a specific chosen lockup. All veABRA from the lockup must be fully allocated during voting.
A lockup can be used once per epoch, but users can cancel their vote and re-vote with the same lockup.
Only lockups with an unlock date later than the end of the next epoch can be used.
When transferring a lockup to another network, votes related to it are reset in the original network for the current epoch.
The share of ABRA emissions for each strategy, directly impacting the APR
Parameters for rebalancing liquidity among yield sources within each strategy
The shares of collected external rewards allocated to each voter
