What is Equilibre?

Équilibre protocol was designed based on the Solidly & Velodrome finance to be a public good that provides deep liquidity and low slippage on token pairs critical for the growth of the Kava ecosystem. The protocol incentivizes liquidity by giving token lockers the right to direct the protocol’s emissions to their favorite pairs. Équilibre is a next generation liquidity layer on KAVA Chain that was created as a protocol for protocols. The main stakeholders of VARA — veVARA holders, LPs, users, and protocols — are all aligned by the ve(3,3) dynamics that determine $VARA emissions. $VARA emissions, along with bribes deposited by protocols and fees generated by each pools, are the main pillars of Équilibre economy — designed to incentivize the best behavior out of each stakeholder.

Équilibre model uses the VARA token and veNFTs to motivate participation in the protocol by allowing lockers, who receive veVARA for locking their VARA, to vote on which pairs will receive emissions. In return, they receive 100% of the trading fees generated by these pairs. They also receive tokens from bribes directed toward these pairs and an anti-dilutive rebase to protect against negative share price movements. Fees and bribes as incentives can help pull voting toward pairs believed to be the most beneficial for the ecosystem.