Understanding CHI & veCHI

Chi Protocol Native Tokens

The Use Cases of CHI

The primary purpose of CHI is to involve as many users as possible in governance participation and share revenues derived from the yield generated by USC reserves. CHI has three main uses: staking, voting, and boosting. Those three things will require you to either stake CHI or vote lock it and acquire veCHI

*Note: veCHI stands for vote-escrowed CHI; it is simply CHI locked for a predetermined time. The longer you lock CHI for, the more veCHI you receive.

Staking CHI (stCHI)

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 all the ETH staking rewards to stCHI to ensure that revenues are distributed fairly to all protocol participants. Those rewards are collected from the USC reserves and distributed among CHI stakers and lockers.

Locking CHI (veCHI)

By locking CHI, users receive veCH (vote-escrowed CHI) based on their lock period. veCHI holders have the same benefits as CHI stakers by earning ETH staking rewards of the protocol’s LSTs. Furthermore, veCHI also earns stCHI emissions that are automatically locked for the same time as the veCHI position. Thus, the more veCHI users hold, the more voting power they will have, higher the veCHI rewards, and more boosted the ETH staking yield.

CHI Matrix

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

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