veXPGN (Locking & Power)
veXPGN is Paragon’s governance and value-alignment layer. By locking XPGN, users gain voting power, influence protocol parameters, and participate in system-level incentives.
TL;DR
lock XPGN → receive veXPGN
vote on emissions and execution parameters
participate in protocol incentives
voting power increases with lock duration
What is veXPGN?
veXPGN is a vote-escrowed position created by locking XPGN.
When you lock XPGN, you receive:
governance voting power
participation in protocol-level incentives
access to gauge voting and bribes
👉 veXPGN is:
non-transferable while locked
time-weighted
aligned with long-term participation
Locking Mechanics
Parameters
asset: XPGN
duration: 1 week → 104 weeks
Voting Power
veXPGN = XPGN × (lock duration / max duration)
👉 Longer lock duration results in greater voting power.
Features
extend lock duration
add additional XPGN
claim rewards independently
What veXPGN Controls
🌾 Emissions (Farming)
directs XPGN rewards across pools
determines which pools receive incentives
⚡ Execution Parameters
influences how liquidity is prioritized
impacts routing preferences across pools
👉 veXPGN aligns liquidity incentives with actual protocol usage.
Utilization Gauges
Paragon uses utilization-based gauges instead of pure TVL-based allocation.
Traditional Model
rewards based on liquidity size
encourages idle capital
Paragon Model
rewards based on real usage
prioritizes active liquidity
Mechanism
Each pool receives weight based on:
governance votes (veXPGN)
actual usage metrics
Simplified Model
effective weight = vote weight × (1 + β × utilization)
Where:
β = utilization multiplier
utilization = relative usage of the pool
👉 This ensures that actively used pools receive more incentives.
Flow Utilization Score (FUS)
FUS measures real pool usage.
Components
volume routed
execution efficiency
liquidity stability
👉 Scores are normalized across pools.
Bribes
Protocols can incentivize veXPGN voters.
Types
Gauge Bribes
incentivize emissions allocation
Execution Incentives
incentivize routing preference
👉 Incentives are only effective if execution quality remains valid.
Anti-Gaming Protections
Designed to prevent manipulation:
volume filters
price impact caps
oracle validation
minimum liquidity thresholds
👉 Only meaningful usage contributes to rewards.
Contract Architecture
veXPGN NFT → locking and voting
Gauges → store votes and allocate emissions
Execution Layer → routes trades
Reward Vaults → distribute incentives
Example
pool receives votes
pool has strong utilization → receives higher effective weight
👉 Both governance and usage influence outcomes.
What You See in the UI
voting power
selected gauges
rewards and incentives
active positions
Governance Controls
Parameters adjustable via governance:
utilization multiplier (β)
emission allocation rules
execution parameters
risk limits
👉 veXPGN holders directly influence system behavior.
Summary
lock XPGN → receive veXPGN
influence emissions and execution
participate in incentive systems
rewards driven by real usage
veXPGN is the coordination layer of Paragon — aligning governance, liquidity, and execution into a system where participation and usage drive outcomes.
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