There are a few modifications that set veMPH apart:
- Instead of locking pure MPH, users obtain veMPH by locking 80/20 MPH/WETH Balancer Pool Tokens (BPTs). This ensures that even if a large portion of MPH tokens are locked, there is deep trading liquidity.
- veMPH's maximum locking period is 4 year, an increase from veBAL's 1 year period. The minimum locking period is 1 week.
- No boosting: unlike Balancer or Curve, a user's claimable MPH doesn't depends on their amount of veMPH.
If a user locks 1 BPT of 80/20 MPH/WETH for the maximum time of four year, they will receive 1 veMPH; however, this veMPH quantity starts immediately decaying with time. If the user does not extend the lock period, this will decay to 0 after the four years are complete, at which point the user can redeem their 1 BPT of 80/20 MPH/WETH.
veMPH holders are entitled to a share of 50% of collected protocol fees. Users can collect their proportional share (
) after the fees are consolidated. Consolidation is a necessary step since protocol fees are collected as a wide array of tokens, and dividing up long tail assets for everyone could result in higher gas fees than token value in some cases.
The 50% left will be given to the governance treasury to acquire protocol-owned liquidity and as working capital and metagovernance assets.