Understanding CHI & veCHI

Chi Protocol Native Tokens

The Use Cases of CHI

The primary purpose of CHI is to engage as many users as possible in governance and to share the revenues derived from the yield generated by the USC reserves. CHI has three main uses: staking, voting, and boosting. Engaging in these activities requires you to either stake CHI or lock it for voting to acquire veCHI.

*Note: veCHI stands for vote-escrowed CHI, which is CHI locked for a predetermined period. The longer you lock CHI, the more veCHI you receive

CHI can be staked to receive interest generated by liquid staking tokens (LSTs) in the protocol’s reserves. Since Genesis, it was chosen to redirect the ETH staking rewards to stCHI to ensure that revenues are distributed fairly to all protocol participants. These rewards are collected from the USC reserves and are distributed among CHI stakers, USC stakers, CHI lockers, and LPs.

CHI Matrix

The table below can help you understand the added benefits of veCHI with respect to stCHI.

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