Please note, vote boosting will only be enabled from the 28th of August.
Along with DAO governance and fee burning, CRV can also be locked to increase your CRV rewards on the liquidity you provide on Curve Finance.
The maximum multiplier that can be reached by vote locking is 2.5x.
There are several things to take into consideration when trying to figure out how much CRV you will need to lock to reach the maximum boost.
Why should you vote lock your CRV?
The liquidity gauge calculates how much your earning weight is. By locking your CRV in the voting escrow, you can boost your rewards rate to 2.5x.
This will start from the 28th of August.
What are veCRV?
veCRV stands for voting escrow CRV. They are your CRV locked for voting. The longer you lock your CRV for, the more voting power you have (and the bigger boost you can reach). You can vote lock 1,000 CRV for a year to have a 250 veCRV weight.
Your veCRV weight gradually decreases as your escrowed tokens approach their lock expiry. A graph illustrating the decrease can be found at this address: https://dao.curve.fi/locker
How is your boost calculated?
To reach your maximum boost of 2.5x, there are several parameters to take into consideration.
You can find the current DAO voting power at this address: https://dao.curve.fi/locker
You can find a calculator at this address: https://dao.curve.fi/minter/calc
The details below assumes the following:
- You are providing $10,000 to any pool which means your earning weight is also $10,000
- The total pool gauge liquidity is $500,000,000
- The total voting weight is 2,500,000 veCRV
This is just an example assuming a completely random voting weight. Because proposals haven't started and boost isn't enabled yet, the current total voting weight is quite low. It will inevitably go up significantly by the 28th of August.
The boost mechanism will calculate your earning weight by taking the smaller amount of two values. The first value is simple, it's the amount of liquidity you are providing which in this example is $10,000. This amount is your maximum earning weight.
The second value is a bit more complicated and goes like this:
In the example above, you would need to reach a voting weight of 50 veCRV to reach your boost of 2.5x.
If your voting weight was 10 veCRV, your earning weight would be $5,200.
As mentioned above, the gauge will use the smaller value of those two formulas to figure out your earning weight so if your liquidity provided is $10,000 and your second value comes to $5,200, you would then be earning on $5,200 (or a boost of 1.3x).
The complete formula which will return your earning weight is like so:
Getting more technical
If you want to go into more details about the mechanisms, click here to check our Github docs.
Does boost apply to vesting?
Can the boost change over time?
The more locked tokens there are, the smaller you relative voting weight becomes which in turns lowers your boost.
Vote locking boost is an incentive for CRV holders to participate in the Curve DAO governance. We strongly believe in the power of decentralisation and want CRV holders to be involved in the protocol's future.
If you have any other questions or need help, join our community: