Liquidity Providing

Liquidity Providing is another way to earn income using CONE Swap. By staking LP to the gauges with the most votes, users will receive the incentives directed to the gauges in proportion to the liquidity provided to the gauge. Approximately 65% of CONE's supply goes to liquidity providers.

Liquidity providers do not receive swap fees from the gauge's trading volume. The income from liquidity providers comes from the CONE rewards directed to the gauge by veCONE. All swap fees go to the veCONE users that voted on the gauge; this creates a dynamic to incentivize swap fee generation and vote on gauges that produce more trading volume.

Swap Curves

CONE uses two price curves: Uniswap v2 and Curve Stable Swap. Curve is more suitable for trading volatile and uncorrelated assets, while Curve Stable Swap provides a higher trading volume with lower slippage for correlated assets like BUSD-USDT.

Fees

• Volatile pools have 0.05% swap fees.

• Stable pools have 0.01% swap fees.

Distribution Mechanism

Swap fees generated by the gauge are automatically attached to the next epoch of the gauge. At the beginning of the next epoch, the fees generated will be distributed to voters over 7 days, which is the duration of a voting and distribution epoch.

All swap fees are distributed proportionally to the veCONE users who voted for the gauge that generated them and are automatically attached to the same gauge as bribes, making it more attractive to veCONE voters. This mechanism is how veCONE proportionally receives all fees from the gauges they voted for.

Whitelisting

The requirement for whitelisting tokens in CONE is 0.5% of the CONE circulating supply. With this requirement, it is expected that a wide variety of tokens will be listed on CONE, producing more fees and attracting more votes, increasing the likelihood of generating a virtuous growth cycle. Downvoting from veCONE holders might neutralize bad practices such as whitelisting fake tokens.

Gauge Weight

Upon receiving votes from veCONE, the gauges with the most votes will receive more CONE rewards from emissions. The total of CONE rewards is distributed in relation to the gauge's TVL. Generally, the gauge offers results on APR.