The $ELTK Token
Last updated
Last updated
The $ELTK token serves as the native utility token for the decentralized exchange. Its primary function is to incentivize liquidity providers on the platform. In a decentralized manner, $ELTK token holders gain voting power, enabling them to participate in the decision-making process by voting for the allocation of $ELTK emissions to specific pools. This incentivization mechanism ensures a fair and community-driven approach to directing token emissions and promoting active participation and engagement within the Elektrik ecosystem.
Currently, the $ELTK token has two main utilities:
Locking $ELTK tokens to unlock voting power. Providing liquidity to receive $ELTK as liquidity mining incentives. The Elektrik ecosystem offers rewarding opportunities to its participants, namely $ELTK lockers and liquidity providers. $ELTK lockers receive voting-escrowed $veELTK tokens, empowering them to influence the allocation of emissions to specific liquidity pools through voting. Moreover, they become eligible for external bribe rewards, enhancing their incentives further. To counter token inflation and voting power dilution caused by $ELTK liquidity mining emissions, $ELTK lockers also receive rebasing rewards in the form of a small amount of $ELTK tokens.
For liquidity providers, there are liquidity mining incentives for locking their LP tokens, incentivizing their active involvement. Additionally, liquidity providers are entitled to a share of the protocol swap fee, further rewarding their contribution to the platform's liquidity and ecosystem growth. Overall, Elektrik fosters a rewarding environment for both $ELTK lockers and liquidity providers, promoting active participation and collaboration within the ecosystem.
The tables below can clarify the rewards and actions for each of the participants in the ecosystem.
Note that $veELTK holders who also provide liquidity earn swap fees because of liquidity provision. They can earn additional swap fees if they also utilize their voting power.
