Rebase Protection
Lynex blends Olympus DAO's anti-dilution rebase mechanism with Curve's vote-lock model, inspired by Solidly's ve(3,3) concept. This setup protects veLYNX holders from dilution by adjusting allocations over time, with a starting anti-dilution cap of 52% decreasing by 1% weekly for a year to ensure fairness.
The duration of veLYNX locks affects the rebases received, promoting long-term participation. Dilution protection rebases are awarded each epoch, encouraging early locking of tokens.
A practical example to give you a better understanding of how the system works:
EXAMPLE: 52% Dilution Protection:
Note: Lynex has a 52% rebase, decreasing 1% per epoch for 52 epochs.
You have 1000 LYNX, which is 10% of the total supply of 10,000 LYNX at the time.
During this epoch, another 10,000 LYNX was emitted to gauges, pushing the total supply of LYNX to 20,000
You can claim your rebase after the epoch ends and receive 500 extra LYNX added to your position. This makes you now have 7.5% of the total supply, at 1500 LYNX out of 20,000 LYNX
The above is a crude but straightforward example that should simply explain the ideology and functionality of the rebase.
Last updated