Locking

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. Voting is sticky and does not need to be repeated 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.