FlatQube DAO

Broxus
7 min readOct 12, 2022

In our previous article we talked about QUBE tokenomics, vote escrow, gauges and utility.

Here we are going to answer some fundamental questions — why is the DAO necessary, how does it work, what updates are coming, etc.

To begin let’s start with why the FlatQube DAO is necessary.

FlatQube has already existed for over a year. In this time, we have restructured the DEX a few times, updated the type of smart contracts it operates with, created the QUBE governance token, lowered commissions on stablecoin swaps, added a stable curve (a formula that adjusts prices in pools with stablecoins, significantly increased trading volume and TVL and much more.

The DEX is getting bigger, with more liquidity, users, and responsibilities. The time has come to move further: make operations even more transparent, increase our technological capabilities and provide users with the ability to earn even more.

We launched the DAO so that the management of earning mechanisms on the platform was in the hands of our users, liquidity providers and QUBE holders!

First of all, this allows the DEX to correspond to the current market and, accordingly, attract new investors and new projects. And we all know that everyone needs new players. This move will make our platform more popular for new investors and increase liquidity across the board. Likewise, this adds a tangible and understandable utility to QUBE tokens.

The decision-making process for new solutions for the DEX is becoming as transparent as possible. Thanks to this, the value of QUBE will mature in step with the growth of FlatQube as the primary DEX of the Everscale ecosystem. And by virtue of its integration with Octus Bridge, FlatQube is becoming a cross-chain DEX with unlimited potential.

When will users have to switch to the new farming pools?

The date of the switch will be announced early on all of our social media pages (Telegram, Twitter , Discord) and there will also be a banner on the farming page reminding users of the upcoming switch. There won’t be a gap between the old farming mechanism and the new: the new farming mechanism will kick into effect at the precise moment the old mechanism ceases to allocate rewards.

The vesting mechanism for farming rewards will work the same way it did in the old model. If you don’t remove your tokens from the old farming pools, the tokens will remain there and you will be able to remove them at any time, however, you won’t be allotted any rewards for the time you have kept them there after the new farming mechanism starts.

TLDR: The best time to transfer your tokens to the new farming pool will be right when the old farming mechanism ceases to operate and the new one begins.

How to get the highest returns?

It’s no secret that everyone wants to earn more.

In the crypto world, this is possible with boosted farming, which has been made possible on FlatQube thanks to the launch of veQUBE (vote-escrowed QUBE) tokens. veQUBE tokens are distributed in return for locked in QUBE tokens, and the longer you lock them in for, the more veQUBE tokens you’ll get.

Here is a brief rundown on how to boost farming:

  1. Lock in your lp tokens for the longest period possible. The longer you plan on keeping your tokens in a pool, the higher your APR will be.
  2. Participate in the DAO and use veQUBE tokens. The mechanism here is very similar — the more veQUBE tokens you lock in and the longer you them in for, the higher your APR.

By doing this, you’ll be able to increase your returns by locking in longer + by locking in your QUBE tokens + you shouldn’t forget that farming on FlatQube already provides quite high returns.

Now for some inside baseball

How does it work?

Let’s say that you have the equivalent of 1000 USD in your wallet. (Buy tokens) You put part of your assets in a liquidity pool, and with the remaining, you buy QUBE tokens. Don’t forget that you’ll need a small amount of EVER to pay for gas for these transactions. 50 EVER is enough to deposit and withdraw tokens.

As a result, you’ll have LP tokens worth about $600 and QUBE worth about $400.

Now, of course, we want to earn the maximum possible so we then go and lock in our tokens for the maximum amount of time possible. You can lock in tokens for anywhere from 1 week to 4 years. However, a word to the wise — if you lock your tokens in for 4 years, you won’t be able to get them back before then. For farming, there is a vesting mechanism in place.

Remember that we still have a bunch of QUBE tokens in our wallet?

With these, we’re going to lock them in and receive veQUBE in return. It is important to understand that veQUBE is not a regular token. What is meant by that is that you won’t see your veQUBE tokens in your wallet and you won’t be able to transfer them, etc. These tokens are only virtual and exist as a means to enhance farming on FlatQube.

Here again, the longer you lock them in, the more veQUBE you will receive which means the higher your returns will be. For a deeper understanding of how it works, here is the veQUBE formula:

At this step, we have already locked in our tokens and started to get big rewards. But this isn’t the full extent of everything introduced by the update. Now you have veQUBE and with them you can earn even more. Here we are talking about gauges.

Previously, we didn’t have anything like this on our DEX. So we are briefly going to break down how it works and why it is necessary.

Every two weeks the DAO will agree upon the award to be paid out in QUBE for pools that participate in the voting processes. In agreement with the tokenomics, FlatQube has allotted 70% of its tokens for farming — at the moment that is more than 9mn tokens.

In order to earn more, it is important to vote using veQUBE tokens. The pool that receives the most amount of votes will get the highest rewards in the next farming period.

How does voting work with gauges?

All epochs last 14 days. The first two days are considered the offset in which nothing happens. There are then 11 days of voting and 1 day for introducing the new epoch.

The longest and most important step is voting. During this time you have to vote for a pool. Most likely, you use more than one pool, and you can vote for as many pools as you want. Just remember, once you have sent your votes in, you won’t be able to vote until the next round. Thanks to the new voting protocol, users will be able to control farming speeds on FlatQube.

Now, let’s touch on how awards will be distributed among pools after the voting period has ended. All pools that get from 1–35% of the votes will get rewards. The rewards will be split up and distributed according to the percentage of votes a pool receives. All pools that receive less than 1% of the votes won’t get rewards and their votes will be allocated to other pools. For pools that receive more than 35%, once the voting period ends, the surplus will be to the treasury. There won’t be any rewards for the act of voting itself and your tokens won’t be sent anywhere while the voting process is ongoing.

By the way, if you have your own liquidity pool and you want to participate in the voting process, reach out to us. The price to get on the list of eligible pools is 1k QUBE. That is a one-time payment. But it is important to understand that if your pools fails to garner more than 1% of the vote total for 4 rounds in a row, it will be removed from the list, and all the QUBE tokens paid for the listing will be burned.

Keep up with all the latest updates

Follow us on social media so you’ll get all the info on when the new farming mechanism will come into effect and further step-by-step instructions on how to transfer your tokens over.

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Broxus

This is the official Medium account of Broxus, developer of octusbridge.io, flatqube.io, EVER Wallet & everscan.io.