Guide to veFlywheel Emissions
This page is intended to help both LPs and projects understand their rewards and emissions received through the veFlywheel.
Terminology
Raw LP Incentives:
Any user can add raw (unboosted) incentives in the form of ERC-20 tokens to a Boosted Position.
These incentives are distributed pro rata among Liquidity Providers (LPs) in that Boosted Position.
The purpose is to encourage more users to add liquidity to the specific Boosted Position.
MAV Emissions:
These are rewards given in the form of MAV tokens to match the Raw LP incentives added to a Boosted Position within the same Epoch.
LPs providing liquidity in Boosted Positions are eligible to receive these MAV emissions, which are distributed pro rata.
At the start of the emissions period in each epoch, MAV emissions are eligible to be distributed simultaneously across all chains. However, someone needs to distribute the emissions from the UI (Manage Incentives -> Match Incentives -> Find the right Epoch -> Click the ‘Distribute’ Button)
MAV emissions fall into two categories: Direct Match and Vote-Match.
MAV Emissions - Direct Match:
This is the portion of MAV emissions designed to provide up to a straightforward 100% match to the Raw LP incentives.
MAV Emissions - Vote-Match:
This is the portion of MAV emissions designed to provide additional matching above the Direct Match, as directed by veMAV votes during each Epoch.
Incentives Flowchart
Where Can I Find My Rewards?
Liquidity Providers
Before Adding Liquidity
You can find the projected Annual Percentage Rate (APR) in the UI based on the current pool statistics.
On the Boosted Positions page, under the APR column, the grey APR represents the effective cash on cash APR, which includes fees and the MAV tokens eligible to claim today, if the user chooses not to stake their emissions.
The APR shown on the purple chip indicates the total APR available with the maximum extra boost to MAV emissions received if the user is willing to stake for 4 years and holds sufficient veMAV.
After You Have Added Liquidity to Maverick V2
LP fees: LP fees generated from swaps are automatically compounded into LP positions. You can track the balance of your positions manually in the Portfolio or use 3rd party tracking dApps.
LP Rewards: On the Portfolio page, position cards for Boosted Positions will also show rewards earned from incentives and/or emissions, all of which can be claimed by clicking the Claim button.
LPs have two options for receiving MAV emissions:
Withdraw: Receive X number of MAV emissions immediately.
Stake: Stake their MAV emissions for a fixed period to receive a boost to X.
Receive 5-6.66x of their eligible MAV emissions in 4 years.
Receive 4-5.33x of their eligible MAV emissions in 3 years.
Receive 3-4x of their eligible MAV emissions in 2 years.
Receive 2-2.66x of their eligible MAV emissions in 1 year.
The boost to MAV emissions an LP can claim also depends on how much veMAV the LP holds compared to the total veMAV on the chain. You can find more information about the boost from holding veMAV under Understanding Incentives.
veMAV Holders
veMAV holders will be eligible to claim any boosts to MAV emissions that Liquidity Providers did not claim from Boosted Positions reward contracts. These leftover MAV emissions will be distributed as MAV tokens staked for 4 years. The distribution to veMAV holders will occur quarterly. The staked MAV claim feature for veMAV holders will be available on the UI soon.
How to Calculate the Matching Ratio
Maverick Boosted Positions allow incentivizers to add liquidity incentives to specific ranges of the pool, using various shapes and movement modes. This approach helps bootstrap liquidity and enhances incentivization efficiency.
MAV emissions matched by the veFlywheel provide an extra boost on top of the raw incentives added to Boosted Positions, further increasing liquidity incentives to LPs. Incentivizers wishing to optimize their incentivized liquidity strategy may find it useful to calculate their Matching Ratio, which shows how much MAV emissions are matched to their raw LP incentives.
Step 1: Raw Incentive Credits
Raw incentives in the form of MAV sent to ve-enabled Boosted Positions are automatically eligible for matching from the veFlywheel on a 1:1 basis.
In addition, anyone can apply to have an arbitrary incentive token selected to receive matching MAV emissions from the Maverick veFlywheel. Each epoch, the Maverick Liquidity Committee can set a multiplier for each arbitrary token which establishes the relative value of that token to MAV for the purposes of emissions.
Raw Incentive Credits = Number of Raw Incentive Tokens * Multiplier
For example, if the Committee selected USDC as an arbitrary matching token with a 5x multiplier, the matching contract would treat each USDC raw incentive as worth 5 MAV tokens. If a Boosted Position then received 10,000 USDC raw incentives during Epoch 1, its Raw Incentive Credits would be 50,000 during Epoch 1.
Raw MAV incentives have an effective multiplier of 1. So if the Boosted Position with 10,000 USDC raw incentives also received 20,000 MAV raw incentives, its total Raw Incentive Credits would by 70,000 (10,000 * 5 + 20,000 *1).
Only Boosted Positions that include veMAV on their reward contract and have received raw MAV incentives and/or raw incentives in the form of an included arbitrary token in a given epoch will qualify for matching emissions in that epoch. If a Boosted Position does not include veMAV on its reward contract and/or does not receive raw incentives in MAV or an included arbitrary token, it will not receive any matching emissions.
If a token has not been selected as an arbitrary token to join the Maverick veFlywheel, Incentivizers must fill out this form within the first 3 days of the Epoch they want to join.
If a token has already been selected as an arbitrary token to join Maverick veFlywheel, you can find out your Raw Incentive Multiplier from the Maverick Liquidity Committee.
Step 2: MAV Emissions Calculation
As explained above, MAV Emissions include both Direct Match Emissions and Vote-Match Emissions. The Direct Match and Vote-Match Emissions for each eligible Boosted Position in a given epoch can be calculated as follows:
Direct Match
If the Epoch’s Direct Match budget is greater than or equal to the Total Raw Incentives eligible for match, then Direct Match = 100% * Boosted Position's Raw Incentive Credits
If the Epoch’s Direct Match budget is less than the Total Raw Incentives eligible for match, then Direct Match = Direct Match Budget * Boosted Position's Raw Incentive Credits/Total Raw Incentive Credits Across all Boosted Positions
Vote-Match
Vote-Match is calculated as Vote-Match Emission budget * Boosted Position's Weight / all Boosted Positions' Weights where Weight = Boosted Position's % of Total Raw Incentives * Boosted Position's % of Total Votes Cast.
The Vote-Match design ensures 100% of the Vote-Match budget is used every epoch.
You can find how much total veMAV is eligible to vote during a given epoch and how many votes have been cast at: https://app.mav.xyz/vote
Step 3: Calculate Matching Ratio
The Matching Ratio can be calculated as (Raw Incentives + Total MAV Emissions) / Raw Incentives in Dollar Value.
Due to the staking/boosting mechanics of MAV emissions, you can also calculate a Cash on Cash Matching Ratio = (Raw Incentives + Total MAV Emissions that can be withdrawn now) / Raw Incentives in Dollar Value.
For example, suppose a Boosted Position receives $10,000 in XYZ tokens and the XYZ token is selected as an arbitrary token for matching by the veFlywheel. The Boosted Position then receives a match of $16,000 in MAV tokens. The Matching Ratio is 260%; Cash on Cash Matching Ratio is 132%.
Last updated
