SLMN Token Utility

**WORK IN PROGRESS**

SLMN is the limited supply governance token for the Stacking Salmon Protocol. The total supply of SLMN is 100,000,000.

Stacking Salmon token holders can participate in protocol governance by locking SLMN for veSLMN over a predetermined number of days. veSLMN stands for vote-escrowed SLMN, it is simply SLMN locked for a period of time. The longer you lock SLMN for, the more veSLMN you receive.

SLMN can be staked to receive fees accrued by the Stacking Salmon protocol. There will be a 0.2% fee on all borrows, lends, deposits, and withdrawals. Of that, 50% constitutes an admin fee which will be collected and distributed to veSLMN holders in the form of tokens native to the pools the fees are incurred on. For example, if a user decides to borrow BERA from the BERA-HONEY pool on Stacking Salmon, the borrow admin fee will be distributed amongst veSLMN holders in the form of BERA. These fees veSLMN holders receive are vested for 90 days. If users choose to unlock their fees before the 90 days, there will be a 50% penalty which will go back to the Stacking Salmon treasury where users should not expect any work or profit from the funds accumulated.

One of the main incentives for SLMN is the ability to boost your rewards on provided liquidity. Vote locking SLMN allows users to acquire voting power to participate in the DAO and earn a boost of up to 2.5x on the liquidity they are providing on Stacking Salmon.

How veSLMN works:

- Lock SLMN between 7 days to 1825 days to receive veSLMN.

- veSLMN is non-transferable and non-tradeable.

- 1 veSLMN = 1 vote in the future of Stacking Salmon DAO governance.

- veSLMN staked translates to voting power which can be used to determine allocation of SLMN token liquidity mining by chain and market (e.g.- Berachain, BERA).

- Once you vote, your vote will remain directed at pools unless modified.

- Users will have the ability to change their votes every week and will be able to allocate their veSLMN to different pools.

- veSLMN allows the user to control SLMN emissions across all Rythm markets in the future.

- veSLMN increases emission from a base factor of 0.4 to a max of 2.5x, the more veSLMN you stake, the more SLMN you earn.

Minting veSLMN:

Assuming 1000 SLMN locked:

• 1000 veSLMN – locked 1825 days (5 years)

• 600 veSLMN – locked 1095 days (3 years)

• 200 veSLMN – locked 365 days (1 year)

• 100 veSLMN – locked 180 days (6 months)

• 16.44 veSLMN – locked 30 days (1 month)

• 3.84 veSLMN – locked 7 days (1 week)

veSLMN decays linearly over time. At the unlock date of SLMN, your veSLMN balance would be 0.

On Stacking Salmon, the inflation is going to users who deposit liquidity. This usage is measured with gauges. The liquidity gauge measures how much a user is providing in liquidity. The liquidity gauge measures how many dollars you have provided in a Stacking Salmon pool. Each Stacking Salmon pool has its own liquidity gauge where you can stake your liquidity provider tokens.

Each gauge also has a weight and a type. Those weights represent how much of the daily SLMN inflation will be received by the liquidity gauge. The weight systems allow the Stacking Salmon DAO to dictate where the SLMN inflation should go. By doing so, you can put your voting power towards the liquidity gauge (or pool) you think should receive the most SLMN. This weight will add more inflation to the base emission rate seen by all whitelisted pools.

We believe that the proposed token structure will create an open loop feedback system that entrenches SLMN as a base protocol that creates more efficient markets across the Berachain ecosystem.