All About CELL and veCELL in Cellana Finance
Cellana stands out as a Ve(3,3) DEX designed for swapping and providing liquidity within the Aptos ecosystem. Holding CELL tokens and veCELL (NFT Voting) unlocks a unique opportunity to engage in the governance and revenue-sharing aspects of Cellana Finance.
What’s CELL?
CELL is the utility token distributed through weekly token emissions, which incentivizes users to add liquidity and stake the LP tokens in protocol gauges.
CELL holders can lock their tokens for a fixed duration in exchange for veCELL to gain voting power, which can be used to vote on liquidity pools and thus redirect the CELL emissions to the voted liquidity pools.
Holding CELL token can give you 2 options to make a profit:
Adding Liquidity in CELL pairing with other tokens to earn rewards in every epoch.
Locking CELL to veCELL allows users to vote and get a reward from trading fees and incentive tokens by voting.
*The more voting power, the more incentive you can earn in each epoch/week
What’s veCELL?
veCELL (Voting NFT) is Cellana’s governance token in the form of an NFT. When you lock your CELL tokens, you receive veCELL in return. This veCELL not only represents your commitment to the Cellana community but also grants you four significant privileges:
Fee Revenues: As a veCELL holder, you are entitled to a share of the fee revenues generated by the Cellana protocol. This provides a direct incentive for long-term participation.
Governance Control: Holding veCELL gives you the power to participate in the governance decisions of Cellana Finance. Your voice matters in shaping the future of the protocol.
Voting Power: Holders have the ability to vote for liquidity pools weekly. The CELL emissions for the following week will be redirected to liquidity pools based on voting results.
Incentives: Voters earn 100% incentive rewards for the pools they voted for each epoch. Revenues are determined by your weighted voting power for each liquidity pool.
The lock duration will vary depending on users. The maximum lock-up time is up to two years as follows:
100 CELL locked for 2 years will receive 100 veCELL
100 CELL locked for 1 year will receive 50 veCELL
veCELL NFTs can be merged, split, and traded on the secondary markets. Users’ voting powers diminish over time until reaching zero when lock-up time is over. Therefore, in order to maintain voting power, users must frequently re-lock their tokens, which helps enrich the Cellana ecosystem overall.
*It's important to note that the longer you lock your CELL tokens, the more power vote of veCELL you accrue. However, once you commit your CELL for veCELL, the tokens cannot be swapped to CELL during this period until the expiration date.
Voting NFT (veCELL)
Cellana Finance users can lock CELL into veCELL ("ve" = vote-escrowed), except for the difference that Cellana doesn't bind the ve position to a specific account but makes it transferable by tokenizing the ve position into an NFT (Fungible Asset - New token standard on the Aptos), thereby addressing the general capital inefficiency of ve assets, making them tradable.
Voting Power
The voting power of the entire protocol is defined by the total amount of CELL tokens locked into all veCELL NFTs, multiplied by the aggregate linear time decay of the vests.
For instance, 100 CELL locked for 2 years translates into a voting weight of 100, which will decrease linearly. Therefore, 100 CELL locked for 1 year would receive a voting power of 50. Example: If 10,000,000 CELL were locked for 6 months, the total voting power would be:
0.5/2 * 10,000,000 = Voting power weight of 2,500,000
In essence, the utilization of ve-tokenomics serves as a mechanism to reward and incentivize those who believe in the long-term success and growth of the Cellana project better. It aligns the interests of token holders with the sustainable development of the ecosystem.
About Cellana
Cellana is a community-owned decentralized exchange on the Aptos network, aimed at fostering DeFi growth through a sustainable liquidity incentives model. This innovative DEX is the first ever which uses the Ve(3,3) Model in Move Language.
Our ambition is to become a vital liquidity pillar of the Aptos DeFi Ecosystem. We strive to assist emerging protocols to bypass initial liquidity obstacles while also supporting established protocols with a sustainable plan to stimulate liquidity at minimized costs.
Cellana Finance Channels:
jbh
Great one