DApps

DeFi Protocols Benefitst

DApps can direct network emissions to their platforms by offering bribes (extra rewards) to veToken holders. This incentivizes voters to allocate emissions in their favor, providing a more efficient and cost-effective alternative to launching a traditional liquidity mining program.

The bribe mechanism significantly reduces the cost of liquidity acquisition while fostering deeper, more active markets. Protocols benefit from better trading conditions, lower slippage, and more attractive yields for users—without bearing the full cost of incentives. At the same time, the network gains momentum as each new protocol integration boosts liquidity and trading volume, enhancing fee generation.

Bribe Efficieny:

In ve(3,3) tokenomics, bribe efficiency refers to the effectiveness with which DApps can secure network incentives. DApps offer a portion of their fee revenue to veToken holders in exchange for votes. The more votes their DApp receives, the greater the proportion of Network incentives their DApp will receive during the next "Epoch". The efficiency of these bribes is determined by how much incentives a DApp can secure relative to the amount of bribes it offers.

• ${\Delta V}$ = the value of incentives gained by offering a bribe

• $B$ = the bribe cost

$$\text{Bribe Efficiency} = \frac{\Delta V}{B}$$

By aligning incentives across stakeholders, ve(3,3) tokenomics allows DApps to acquire network incentives at a discount through bribes. These incentives can then be used to attract liquidity more cost-effectively than traditional methods, enabling DApps to grow without bearing the full cost of liquidity incentives.