Locking

Locking scAssets

You can lock your staked scAssets on the "Lock" page of the Rings app. The locking period ranges from a minimum of 1 week up to 52 weeks. In exchange for locking your assets, you will receive a veNFT with gauge voting power equivalent to the duration of your lock. This means that the longer you lock the asset (and the higher the amount you lock), the more voting power you gain. This voting power will be crucial in the gauge system explained further below.

By locking, you forfeit the yield from staked scAssets, but gain Gauge voting power. This voting power may be rewarded with Voting Incentives. Learn more about this system here.

Gauge system: Inspired by Solidly

Stakers have the ability to lock their scAssets for up to 52 weeks as a veNFT. By doing so they relinquish their staking yield but gain control of the allocation of the yield made by the Collateral Vault. This yield in scAsset can be allocated to treasuries of projects that are deployed and active on Sonic.

This allocation is done via a weekly voting system into whitelisted gauges. Votes have to be cast weekly.

Projects have an incentive in locking to control part of this yield or paying other users for vote via Quest (launching mid-January). Thus, it is also possible to understand the veNFT as a way to get exposure to tokens from the Sonic ecosystem.

While this choice means forfeiting direct staking yields, it opens the door to earning rewards through voting incentives (also called 'bribes') within the gauge voting system.

Illustration of the Gauge system and voting incentives.