Ecosystem Tokens

Pearl utilizes the two-token model popularized by Solidly and now a foundation in all ve(3,3) exchanges.

$PEARLToken

$PEARL (ERC-20) is our main utility token. DEX emissions are disturbed as $PEARL, which are used as farming rewards to incentivize deep liquidity provision to optimize trading conditions. Users who add liquidity and stake LP tokens earn $PEARL.

$PEARL initial token supply at launch will be be 50 million. Each Epoch, additional tokens will be emitted into circulation. A breakdown of $PEARLS's initial distribution and emissions schedule have been included in the docs.

$vePEARL Token

$vePEARL (ERC-721 aka NFT) is the vote-escrowed version of $PEARL. Users can lock i.e. vote-escrow their $PEARL tokens for up to 2 years to get $vePEARL, giving them the power to vote on the platform's gauges, which control how emissions are allocated to the various liquidity pools on Pearl. The longer the lock, the higher the amount of voting power received.

• 100 $PEARL locked for 2 years will become 100$vePEARL

• 100 $PEARL locked for 6 months will become 25$vePEARL (less voting power)

To encourage sustained participation from stakeholders, $vePEARL balances decline over time, ultimately reaching zero at the end of the lock period. To maintain their balance, users must renew their lock duration on an ongoing basis, thus preserving their voting power while fostering ongoing activity and engagement within the Pearl ecosystem.

$vePEARL token positions can be increased, split up, and resold on a secondary market at any time.

$vePEARL Utility

• Gauge Bribes: Holders earn bribes by voting for gauges on the protocol. These votes are done weekly and determine how $PEARL emissions will be distributed between gauges the following Epoch. Voters collect 100% of bribes posted weekly for each pool.

• Fee Revenue: Voters earn up to 100% of the swap fees generated by the pools they vote for each Epoch.

• Governance: Holders will participate in future governance, voting for protocol improvement proposals and shaping the evolution of Pearl.

A "gauge" is a farming smart contract that takes deposits in one asset (typically an LP token, a vault token, NFT position, etc.) and rewards the depositor yield in another token. These are typically governance tokens like $PEARL when yield farming on a ve(3,3) exchange.