Flywheel
Designed to drive sustainability and efficient liquidity for real world assets on Plume.
Rooster Protocol incorporates powerful ve(3,3) flywheel mechanics, a proven model that creates a self-reinforcing cycle of liquidity growth and governance participation:
Emission Control: veROOSTER holders can use their voting power to direct emissions toward specific liquidity pools.
Enhanced Rewards: veROOSTER holders are incentivized with trading fees and additional rewards for directing emissions effectively, creating strong alignment between token holders and liquidity growth.
Positive Feedback Loop: As pools attract more liquidity through emissions, trading volume and fees increase, further rewarding veROOSTER holders and encouraging more token locks.
This well-established flywheel design aligns the interests of all participants—traders, liquidity providers, and veROOSTER voters—fostering sustainable ecosystem growth and reinforcing the protocol's utility and value. The ve(3,3) flywheel will go live after ROOSTER TGE.
Epoch Mechanics
Rooster Protocol's flywheel will operate on a weekly epoch cycle:
Epoch Duration: A 7-day period, starting every Thursday at 00:00 UTC and ending Wednesday at 23:59 UTC.
During each epoch:
LPs who provide liquidity receive ROOSTER token emissions, distributed proportionally to the votes their pools accumulate.
Participants can lock ROOSTER tokens to become veROOSTER voters, who determine the emissions distribution for the next epoch.
veROOSTER voters are rewarded proportionate to their votes with:
100% of the protocol trading fees generated in the current epoch.
Additional voter incentives allocated by participating projects.
All votes, emissions, fees, and incentives are calculated and distributed at the epoch's conclusion.
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