Farmers Markets #0: BEETS, AERO, VELO gauges

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5 May 2024
256

If you're not familar with the veTOKEN model then check out my intro on Bulb https://www.bulbapp.io/p/270273dd-697b-4332-85ac-db65e50bb46d/vetokens-defi-lore-innovation-yield-from-voting?s_id=bccb5ecb-0380-433a-9e2e-f1405a0305e2


Understanding Voting Gauges

The core loop gameplay loop (for want of a better term) in the veTOKEN model is frequently the act of voting on gauges (LPs) in on the protocol in exchange for rewards.
As we saw in the veTOKEN model post (above) the vote & bribe system gives way to some really complex and interesting strategies when it comes to protocols interacting with other protocols.

But if you're just a normal old degen, like me, you'll just want to vote to get the highest reward.
It's not as straight forward as it looks though. Your voting APR (annualised percentage rate) will depend on two factors:

  • the total rewards available on a guage (bribes + fees)
  • the total number of votes allocated to a guage


Because people will vote right up until the end of the voting period (called an epoch), all return rates are unsecured until the voting has finished. So the highest return may not be the highest return when you vote may not be the highest return when voting ends.

Another thing to consider is what you're being rewarded in. If the gauge rewards are in a stablecoin (e.g., USDC) then you won't see any change in the gross rewards value.
But if the rewards are in a combination of other tokens (which they frequently are), and those are volatile you might have a situation where the gross rewards value is significantly higher or lower than when you voted (even if it's only a couple of days, this is crypto after all).

So it pays to take a little time to analyse the data to see where to allocate your votes. Thankfully this is defi and all the data you need is at your fingertips!




Velodrome Voting Analysis





Links from the video

Optimism Block Explorer https://optimistic.etherscan.io/
Birdseye token explorer https://birdeye.so/?chain=optimism
Velodrome Epoch Dune dashboard https://dune.com/0xkhmer/velodrome
Velodrome Vote: https://velodrome.finance/vote




Aerodrome Voting Analysis Basics






Aerodrome Voting https://aerodrome.finance/vote
Base Block Explorer https://basescan.org/
Birdseye Token Explorer https://birdeye.so/?chain=base
Aerodrome Epoch Dune dashboard https://dune.com/0xkhmer/aerodrome




Beethoven X Voting Analysis Basics





Beethoven X Snapshot https://snapshot.org/#/beets.eth
Beethoven X Fantom pools https://beets.fi/pools
Beethoven X Hidden Hand https://hiddenhand.finance/beethovenx
Beetswars https://www.beetswars.live/
Fantom Block Explorer https://ftmscan.com/
Beethoven X Blog (Medium) https://beethovenxio.medium.com/
Beethoven X Discord https://beets.fi/discord





Over to you

Do you vote on the protocols above?
Do you vote on other veTOKEN protocols?

Let me know what your experience has been in the comments.







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