# Gauges

A gauge model system is designed to compliment the macro tokenomics of the SpitSwap ecosystem. Gauges allow participants of the SpiritSwap ecosystem to have a say on where yield farm rewards should go each week. This is facilitated by inSPIRIT holders being allowed to cast votes each week on which farms they would like to receive ample support by way of reward emissions. \
\
The reason for casting a vote one way or another can be determined by a variety of factors, such as:&#x20;

1. The inSPIRIT holder in question may have a large sum of liquidity in one of these pools, therefore they are inclined to vote on this farm as the more votes this farm receives, the more emissions it will be rewarded with for that coming week. This benefits the end user / inSPIRIT holder voting as these emissions are then passed on to the end user who is farming this pool.
2. A protocol may be offering a bribe on this gauge. Protocols are incentivized to offer "bribes" on their gauge as this will attract inSPIRIT holders to vote on their gauge for increased emissions. This benefits the "bribing protocol" as more emissions attracts deeper liquidity for their pool. Deeper liquidity means their pair has more optimum trade output and can sustain larger price impacts (if say a large holder were to sell all at once). &#x20;

## Isolated Gauge Proxies

Previously in our V1, all gauges were created equal. This meant a free for all when it came to gauge emissions. In order to maximize our DEX's potential and bolster our core tokenomics for the SPIRIT token, there will be 3 separate gauge proxies established moving forward. Each gauge will hold the following weight of emission distribution percentage from the master chef contract each week during the weekly distributor epoch reset. &#x20;

### **Variable AMM (vAMM)  gauges will receive 40% of emissions**

Boosted farm gauges will receive 40% of all Spirit emissions each week moving forward. This means that out of all SPIRIT emissions scheduled for farming rewards to each respective “gauge proxy”, 40% will be distributed among “boosted farms”. \
\
These emissions will then be divided among each respective “Boosted Farm Gauge” depending on the weekly vote they get from inSPIRIT holders. Weighted pools will also be included in this gauge proxy.

### **Stable AMM (sAMM) gauges will receive 25% of emissions:**

Out of all SPIRIT emissions scheduled for farming rewards each week by the master chef contract, 25% will be allocated to gauges for Stable farms. These allocations will then be divided among each respective “Stable Farm Gauge” depending on the weekly vote they get from inSPIRIT holders.&#x20;

{% hint style="info" %}
\*NOTE votes CAN be cast for the vAMM and then be recast for the sAMM. For example if you have 100 inSPIRIT, you can use this 100 inSPIRIT to vote on both the vAMM and the sAMM gauges.&#x20;
{% endhint %}

### **Isolated Gauge Proxy will receive 35% of emissions and be divided up accordingly:** &#x20;

The isolated gauge proxy will be comprised of 3 core pools, with emissions divvied up accordingly

> SPIRIT - FTM 20 % of emissions \
> USDC - FTM 10 %of emissions \
> winSPIRIT pools 5 % of emissions&#x20;

The reason for setting up an isolated gauge proxy for these pairs is to ensure that these critical liquidity pools retain a consistent and controllable flow of incentives. These specific pools are crucial to our ecosystem, as such having a level of control over emissions to these pairs is of immense importance. As the isolated gauge proxy is set by the admin of the contract, this will be the only gauge that votes cant be cast on, as emissions have been set the way they are for a reason - preservation of our ecosystem.

{% hint style="info" %}
It pertinent to mention, this new gauge proxy model is dynamic, meaning numbers can be shifted around if the community vote to do so, however the reason these have been set up the way they are, is that this is what is best for the DEX and the protocol, to preserve emission allocations where they are needed and allow for fair competition.&#x20;
{% endhint %}


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