Incentive Engine
The SNAP Incentive Engine aligns liquidity providers, traders, protocols, and veSNAP voters into a self-reinforcing system. Rewards flow to the actions that create real value, ensuring liquidity deepens where it matters most.
Key participants
Liquidity Providers (LPs): Add capital to pools. When staked in gauges supported by veSNAP votes, LPs earn emissions and fees.
Traders: Bring volume and generate fees. They benefit from low slippage and reliable execution.
Protocols: Boost liquidity by offering bribes to attract veSNAP votes, increasing APRs and depth for their tokens.
veSNAP Voters: Lock SNAP, vote weekly to direct emissions, and earn trading fees and incentives.
The cycle
LPs add liquidity.
Traders swap, generating fees.
Fees flow to veSNAP voters.
Voters direct emissions to productive pools.
Emissions attract more LPs.
Liquidity deepens → better trading → more fees.
Why it matters
Emissions are allocated efficiently to active pools.
Governance, not protocol admins, decides liquidity flows.
Protocols can bootstrap liquidity transparently.
Long-term lockers gain both income and influence.
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