NILE
  • INTRODUCTION TO NILE
    • 👑What is NILE?
      • 🔵Why Linea?
    • ☯️ve(3,3) Fundamentals
      • Dilution Protection (Rebase)
      • veNILE (veNFT)
        • 💰veNILE Revenue Distribution Schedule
    • 🔮DEX Functionalities
      • Swaps
        • 🎋Swap Fee Structure
      • Voting
      • Bribing (Incentivizing)
      • Vesting (veNFT Management)
      • LP Staking
  • Concentrated Liquidity Core
    • 🤔Concentrated Liquidity
      • 🔢Fee Tiers
      • 🦭Fee Distribution
    • 🏆CL Gauges
    • 📜BUSL-1.1 License
    • 🏁Competitive Farming
  • NILE Tokenomics
    • 📊NILE Token Distribution
    • 📈Emissions Schedule
    • ❌xNILE (Deprecated)
      • How is xNILE obtained?
      • How is xNILE used?
      • ☸️xNILE "Flywheel"
    • 🌀Dilution Protection (3,3) Rebases
  • Resources
    • 📄Deployed Contract Addresses
    • 📱dApp and Socials
    • 📸NILE Media Kit
    • 🌉Bridging To Linea
  • Security and Legal Considerations
    • 🐛Fixed Solidly Vulnerabilities
    • 🛠️Why Proxy Contracts?
    • 🔐Contract Timelock
    • 😎Inherited Security
    • 🖋️Formal Audits
    • ⚖️Risks and Legal Disclosures
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  1. INTRODUCTION TO NILE
  2. ve(3,3) Fundamentals

Dilution Protection (Rebase)

A key function of the ve(3,3) model is the dilution protection rebases, which occur per epoch, to incentivize users to lock their tokens early on. The rebase is a nod to the OHM (3,3) model that was popularized the past couple years.

A practical example to give you a better understanding of how the system works:

EXAMPLE: 25% Dilution Protection:

Note: NILE has a 25% rebase, increasing 1% per epoch until 50%

  • You have 1000 NILE, which is 10% of the total supply of 10,000 NILE at the time.

  • During this epoch, another 10,000 NILE was emitted to gauges, pushing the total supply of NILE to 20,000

  • You can claim your rebase after the epoch ends and receive 250 extra NILE added to your position. This makes you now have 6.25% of the total supply, at 1250 NILE out of 20,000 NILE

The above is a crude but straightforward example that should simply explain the ideology and functionality of the rebase.

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Last updated 1 year ago

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