> For the complete documentation index, see [llms.txt](https://chi-protocol.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://chi-protocol.gitbook.io/docs/chi-and-vechi/understanding-chi-and-vechi.md).

# 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.

{% hint style="info" %}
**\*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
{% endhint %}

{% tabs %}
{% tab title="a) 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 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.
{% endtab %}

{% tab title="b) Locking CHI (veCHI) " %}
By locking CHI, users receive veCHI (vote-escrowed CHI) based on the duration of 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, the higher the veCHI rewards, and the more boosted the ETH staking yield.
{% endtab %}
{% endtabs %}

## CHI Matrix

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

<figure><img src="https://3220527323-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FIjw533sxGca2ZktrOjAI%2Fuploads%2FcNcM0pp3Gg8CPBEjCm87%2FstCHI-vs-veCHI-chart.png?alt=media&amp;token=cef2d8f2-4e46-46d3-b662-445b0195ae17" alt="" width="563"><figcaption></figcaption></figure>