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

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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

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👉 veXPGN is:

• non-transferable while locked

• time-weighted

• aligned with long-term participation

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Locking Mechanics

Parameters

• asset: XPGN

• duration: 1 week → 104 weeks

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Voting Power

veXPGN = XPGN × (lock duration / max duration)

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👉 Longer lock duration results in greater voting power.

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Features

• extend lock duration

• add additional XPGN

• claim rewards independently

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What veXPGN Controls

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🌾 Emissions (Farming)

• directs XPGN rewards across pools

• determines which pools receive incentives

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⚡ Execution Parameters

• influences how liquidity is prioritized

• impacts routing preferences across pools

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👉 veXPGN aligns liquidity incentives with actual protocol usage.

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Utilization Gauges

Paragon uses utilization-based gauges instead of pure TVL-based allocation.

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Traditional Model

• rewards based on liquidity size

• encourages idle capital

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Paragon Model

• rewards based on real usage

• prioritizes active liquidity

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Mechanism

Each pool receives weight based on:

• governance votes (veXPGN)

• actual usage metrics

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Simplified Model

effective weight = vote weight × (1 + β × utilization)

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Where:

• β = utilization multiplier

• utilization = relative usage of the pool

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👉 This ensures that actively used pools receive more incentives.

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Flow Utilization Score (FUS)

FUS measures real pool usage.

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Components

• volume routed

• execution efficiency

• liquidity stability

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👉 Scores are normalized across pools.

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Bribes

Protocols can incentivize veXPGN voters.

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Types

Gauge Bribes

• incentivize emissions allocation

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Execution Incentives

• incentivize routing preference

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👉 Incentives are only effective if execution quality remains valid.

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Anti-Gaming Protections

Designed to prevent manipulation:

• volume filters

• price impact caps

• oracle validation

• minimum liquidity thresholds

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👉 Only meaningful usage contributes to rewards.

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Contract Architecture

• veXPGN NFT → locking and voting

• Gauges → store votes and allocate emissions

• Execution Layer → routes trades

• Reward Vaults → distribute incentives

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Example

• pool receives votes

• pool has strong utilization → receives higher effective weight

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👉 Both governance and usage influence outcomes.

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What You See in the UI

• voting power

• selected gauges

• rewards and incentives

• active positions

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Governance Controls

Parameters adjustable via governance:

• utilization multiplier (β)

• emission allocation rules

• execution parameters

• risk limits

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👉 veXPGN holders directly influence system behavior.

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Summary

• lock XPGN → receive veXPGN

• influence emissions and execution

• participate in incentive systems

• rewards driven by real usage

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veXPGN is the coordination layer of Paragon — aligning governance, liquidity, and execution into a system where participation and usage drive outcomes.