0xEquity mechanics reflect a combination of two DeFi concepts:
- Vote-Escrow — first introduced by Curve to strengthen incentives for long-term token holders and to actively involve token holders in platform governance.
- Staking/Rebasing/Bonding or (3,3) game theory — designed by Olympus DAO.
Combined, the ve(3,3) mechanism rewards behaviors correlated with 0xequity, such as liquidity provision and long-term token holding. Liquidity providers receive $XEQ emissions, and $veXEQ holders receive protocol fees, bribes, rebates, and governance power.