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  1. Home
  2. /Glossary
  3. /Vote-Escrow Model
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defi

Vote-Escrow Model

A tokenomics design where users lock tokens for a period to receive voting power and boosted rewards.

Definition

A tokenomics design where users lock tokens for a period to receive voting power and boosted rewards. The longer you lock, the more voting power you get. Curve invented this with veCRV and it spread across DeFi. The tradeoff is illiquidity during the lock period.

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Related Terms

Ve-Tokenomics

A token model where you lock tokens for a period to receive vote-escrowed (ve) tokens that grant governance power and boosted rewards.

Governance

The process of making decisions about a protocol's development and direction.

Curve Wars

The competition between DeFi protocols to accumulate voting power on Curve Finance to direct token emissions to their pools.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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