Governance Power

Governance power

As DeltaPrime moves into decentralized governance, your voting power will depend on the governance points you accrue. Your currently accrued governance points will be visible from the DeltaPrime UI. Since these points are all on-chain, you will also be able to find them in any explorer with your wallet or PA address. Governance points can be used to decide on what protocols to integrate, what chains to expand to, where to allocate any collected fees, etc.

How to earn governance power

Governance power is earned within the DeltaPrime protocol. By holding $sPRIME and using the platform, you can earn these points. The amount that you earn depends on your actions on DeltaPrime: For every $10 borrowed and $1 $sPRIME owned, your balance increases linearly with 1 point per year. For every $10 deposited and $1 $sPRIME owned, your balance increases linearly with 5 points per year. Only full 10-1 pairs can produce governance points. That means that if you have $200 USDC deposited, and $100 $sPRIME, your account will create points as if you have $200 deposited and hold $20 $sPRIME (leading to 100 points per year).

Previously this wrongly said: "For every $10 borrowed and $1 $sPRIME owned, your balance increases linearly with 10 points per year. For every $10 deposited and $1 $sPRIME owned, your balance increases linearly with 50 points per year.". The decision to 10x points accrued was a purely aestethic, last minute change, but it was not adapted in the contract. Apologies for any confusion!

Governance power cap

Governance points are capped at 3 years. With $100 borrowed and $10 sPRIME owned, your governance power can grow up to 30 points. With $100 deposited in a savings pool and $10 sPRIME owned, your governance power can grow up to 150 points.

How to lose governance power

You can lose governance power by withdrawing deposits, repaying borrowed value or redeeming $sPRIME. Your governance power only reduces if your current governance power exceeds the governance power cap. If this happens, your points that surpass the cap will deteriorate over a period of 14 days. This means that if a user after two years has accumulated 10.000 points with $10.000 in deposits and he withdraws 50% of this, his new governance cap is reduced from 15.000 to 7.500 points. This means his balance will decrease by 178.5 (=(10.000 - 7.500) / 14) points per day, over the course of 14 days. In this example, after 14 days his total points will amount to 7.500, meaning he will not accumulate any more points until the amount deposited is increased.