Crescent Docs
  • Introduction
    • What is Crescent?
    • Crescent DEX
      • Market
      • Pool (Liquidity Pool)
      • Position
      • Order-book and Tick system
      • Hybrid DEX
      • Batch Matching
      • Sequential Matching
      • Multi-hop Swap(SlipLess Swap)
      • Ranged Liquidity
        • Comparison with Basic position
        • Liquidity Amplification Factor
        • Possibility of Change to a Single-Coin position
        • Multiple Positions in the Pool
      • Fee
      • Farming
        • Current Farming vs Legacy Farming
      • Market Maker Incentives
        • MarketMaker Apply / Incentive Claim
        • MarketMaker Scoring
    • Liquid Staking
      • Staking vs. Liquid Staking
      • Overview of Staking Rewards
      • Calculations for Staking Rewards
      • Liquid Staking Validator
    • Snowball (Liquid AMM)
      • Mint & Burn sb-Token
      • Reward Auction
        • How to Participate
    • Gas and Fees
    • Liquid Governance
    • Partnership
    • Crescent Derivatives
    • Crescent DEX (legacy)
      • Coin Pair
      • Liquidity Pool
      • Legacy Farming Rewards (LP Incentives)
      • New Farming Rewards (LP Incentives)
      • Orderbook and Tick System
      • Hybrid DEX
      • Batch Execution
      • Ranged Pools
      • Market Maker Incentives
        • MarketMaker Apply / Incentive Claim
        • MarketMaker Scoring
      • Synergy with Crescent Boost
  • Developer Guide
    • CLI and API
      • AMM module
        • CLI Reference
        • API Reference
      • Exchange module
        • CLI Reference
        • API Reference
      • LiquidStaking module
        • CLI Reference
        • API Reference
      • LiquidAmm module
        • CLI Reference
        • API Reference
  • Technical Guide
    • Market Maker
    • Farming Planner
  • Other Information
    • Network Configurations
    • Crescent Design Assets
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  • Liquidity Providers
  • Voting Power
  1. Introduction

Liquid Governance

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Last updated 9 months ago

As you can see in the liquid staking section, our governance token (CRE) will be liquidated as soon as users stake it via liquid staking module and can be used for other utilities. Unlike other services that promote similar functions, we designed a module that minted token (bCRE) can fully exercise its voting power.

Liquidity Providers

We believe that bCRE holders will strive to manage their assets more efficiently, such as by providing liquidity to pools containing bCRE, rather than holding bCRE as-is in their wallets. Therefore, the issue of maintaining the voting power of bCRE-included LP investors is the most important issue to be dealt with in implementing the liquid staking function of the governance token.

Voting Power

Like closing of the shareholder registry and conforming voting rights in traditional stock market, when a specific governance proposal is submitted and voting is required, the voting power of all users with bCRE is calculated based on a specific point in time, and the users exercise their voting rights in the same way as general dPoS-type blockchains. At this time, the bCRE holding amount is converted to the CRE holding amount using the mint rate at that time, so there is no problem in calculating the voting power with users participating in the network through normal staking rather than liquid staking.

Voting power of user = staked CRE(normal staking) + bCREMint rateVoting\space power\space of\space user\space =\space staked\space CRE(normal\space staking)\space +\space \frac{bCRE}{Mint\space rate}Voting power of user = staked CRE(normal staking) + Mint ratebCRE​

The method of calculating the voting power of users based on a specific time which is similar to a snapshot is especially important in estimating the voting power of bCRE-included LP investors. Because, as you know, the quantity of tokens in the LP position changes in real time depending on the price of the corresponding tokens.

Furthermore, once Crescent Boost is activated, it is possible to leverage the LP position (so-called leverage farming). At this time, voting power for leveraged bCRE-included LP positions will also be recognized as fully vested in the investor. That means we respect those who taking the short-term risk in order to vote on a governance proposal by leveraging a bCRE position, or borrowing bCRE from others.