Basics

The foundation of CELL Emissions

Liquidity Acquisition

The primary purpose of a protocol's emissions is to attract users & liquidity. As outlined in the introductory remarks, liquidity can be more or less valuable. Cellana solves this problem by incentivizing emissions for pools that generate the highest fees for voters. The DEX self-optimizes week-over-week by constantly having voters go after the best voting APRs. Voters' interests are automatically aligned because they exclusively receive fees and bribes from pools they vote on.

Voting NFT (veCELL)

Inspired by Curve, Cellana deploys the same approach by having users 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 a 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 token 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 be decreasing linearly. Therefore, 100 CELL locked for 1 year would receive a voting power of 50. 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

Rewards Distribution

Weekly CELL emissions will be allocated proportionally to liquidity pools based on the weighted voting power.

For example, if a liquidity pool receives 10,000,000 voting power and the total protocol's voting power is 100,000,000. The amount of weekly CELL emissions redirected to the pool is calculated as following:

CELL amount = LP's total voting power/ Total protocol's voting power = 10,000,000/ 100,000,000 = 10%

Therefore, 10% of the weekly CELL emission will be allocated to the liquidity pools, and liquidity providers will be eligible to receive the emission by adding liquidity and staking LP token on protocol gauge.