SilverSwap
Create a new gauge

What is a Gauge in our LSW Ecosystem?

Gauges are a fundamental part of our liquid staking wrapper (LSW) ecosystem. Once a gauge has been created for a token, users can deposit liquidity to obtain votes which they can then use to direct validator emissions to their favorite token—all while earning their own rewards each epoch.

Gauges have a dual layer architecture. The LSW system utilizes the top layer which consists of xTOKEN/S liquidity, while users utilize the bottom layer which consists of xTOKEN/agS liquidity.

How Gauges Work

  • Validator staking rewards are directed to xTOKEN/S liquidity pools based on community votes
  • 50% of incoming validator emissions buy the specific xTOKEN, 50% remain as liquid S and the entire amount is then deposited into liquidity pools
  • Each gauge operates on a 14-day epoch cycle when rewards are distributed
  • Each epoch, 5% of accumulated validator-generated liquidity is withdrawn
  • Voting rewards come from the xTOKEN portion of the slash; compounding for the LSW comes from the S token portion of the slash

Benefits of Creating a Gauge

  • Integrate your protocol's token into our LSW ecosystem
  • Receive targeted liquidity through our validator staking rewards
  • Create a sustainable full-range liquidity pool for your token paired with S with no need for external incentives
  • Benefit from automatic compounding where 5% of accumulated liquidity is distributed each epoch—with the S portion compounding back to validators and the token portion rewarding your voters
  • Gain exposure to our community of liquidity providers and voters

When you create a gauge, you'll need to deposit an initial agS/xTOKEN liquidity position that will be locked in the protocol for a minimum of 6 and maximum of 24 months (in 3 month increments). Once deposited, your liquidity position will be evaluated and reviewed by the team before your gauge becomes active. This creates the safe foundation for users to vote on your gauge and direct rewards to your xTOKEN/S liquidity pool.

Please note: If your locked position is removed for any reason, the system will automatically and immediately liquidate the entire validator-generated liquidity position for your token, protecting other ecosystem participants.

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