Bribes
A core feature of the Sunder model is the bribing mechanism, which incentivizes active participation and strategic collaboration in the ecosystem. Sunder adopts this model with two types of bribes:
1. Vote Bribes
Vote bribing enables users and protocols to influence emission allocations to specific token pairs. Here's how it works:
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Mechanism:
Users or protocols offer bribes to veSUNDER holders in exchange for their votes on particular liquidity pools. -
Proportional Rewards:
Voters receive a proportionate share of the bribes based on the weight of their votes. -
Purpose:
This allows stakeholders to strategically direct emissions, ensuring token distribution aligns with their interests and supports specific pools.
2. Gauge Bribes
Gauge bribing directly incentivizes liquidity providers (LPs) to stake their tokens in particular pools.
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Mechanism:
Protocols offer tokens as bribes to LP stakers to encourage liquidity growth in targeted pairs. -
Primary Beneficiaries:
Protocols aiming to bootstrap liquidity efficiently within the SUNDER Automated Market Maker (AMM). -
Outcome:
Gauge bribes attract liquidity to specific token pairs, fostering robust trading pairs and deeper markets.