VVS staking and xVVS governance
Staking is where holding VVS turns into a stake in the protocol itself. Lock VVS, receive xVVS, and you step into two roles at once: an earner with a claim on protocol revenue, and a voter with a say in what VVS does next. Here's how the mechanism fits together.
From VVS to xVVS
The core move is simple: you stake VVS and receive xVVS, a yield-bearing governance token. xVVS represents your committed position. While VVS is the reward token you earn from farming or hold from a swap, xVVS is what you become when you put that VVS to work governing and supporting the protocol. The two are linked but distinct — see the side-by-side comparison on the VVS token page.
The revenue loop
A share of the fees the exchange generates is directed to buy VVS back from the open market, and that bought-back VVS flows to xVVS holders as yield. The logic is a feedback loop: more trading volume means more fees, more buybacks, and more reward for the people staking long-term. It also ties the token's incentives to real platform usage rather than to emissions alone. As with every figure on this site, the exact share and current yield change over time — confirm them live rather than trusting a static number.
Locking and voting power
Governance on VVS is weighted toward commitment. Your voting power is tied to your xVVS, and crucially, the longer you lock, the more weight your vote carries — longer locks earn disproportionately higher voting power. The reasoning is straightforward: people willing to commit for the long haul have their interests aligned with the protocol's long-term health, so their voice counts for more than that of someone who can exit tomorrow.
In practice this means governance participation is a spectrum. You can hold xVVS for the yield alone, or lock it to take an active hand in proposals — direction of emissions, new features, parameter changes and the like. The model has been rolled out in stages as the protocol matured; the specifics of what's votable at any moment are best read from current official documentation.
Locking xVVS for extra voting power means you can't freely move it until the lock ends. Weigh the yield and influence against giving up liquidity for that period, and never stake funds you might need at short notice.
How the pieces connect
| Step | What you do | What you get |
|---|---|---|
| 1 | Farm or acquire VVS | VVS in your wallet |
| 2 | Stake VVS | xVVS — yield-bearing, vote-carrying |
| 3 | Hold xVVS | A share of buyback-funded revenue |
| 4 | Lock xVVS longer | Greater voting power on proposals |
Things to keep in mind
- Yield isn't fixed. It depends on trading volume, the buyback share and how many others are staking. Treat any quoted rate as a moving snapshot.
- Smart-contract risk applies. Staking means trusting the contracts with your tokens. The protocol has been audited, but audits reduce risk, they don't erase it.
- Verify before you stake. Confirm you're interacting with the genuine contracts via official channels, and never share your seed phrase with anyone, ever.
Staking is the bridge between using VVS and shaping it. If you haven't yet, read how the VVS token is structured, and weigh the risks before committing tokens for a lock period.