How It Works
When a protocol joins the Cartel and bribes their pool on Kittenswap:- Bribery: Partner protocols provide bribes to incentivize liquidity providers
- Reward: The treasury distributes veKITTEN tokens to the partner protocol
- Amount: The veKITTEN reward is proportional to the bribe amount
- Flywheel Effect: This creates a sustainable cycle of liquidity and protocol growth
Benefits for Partner Protocols
- Earn veKITTEN: Receive governance tokens from the treasury based on bribe contributions
- Enhanced Liquidity: Bribes attract more liquidity providers to your pool
- Protocol Growth: Increased liquidity leads to better trading conditions and volume
- Governance Rights: Earned veKITTEN provides voting power in Kittenswap governance
Benefits for Kittenswap
- Increased Liquidity: More protocols bribing means more total liquidity
- Treasury Utilization: Strategic distribution of veKITTEN to valuable partners
- Ecosystem Growth: Attracts high-quality protocols to the platform
- Sustainable Model: Creates long-term incentives for protocol participation
The Positive Flywheel
The Kitten Cartel creates a self-reinforcing cycle:- Partner protocols bribe their pools to attract liquidity
- Treasury rewards them with veKITTEN proportional to their bribe
- More veKITTEN means more governance power and potential future rewards
- This incentivizes larger bribes and attracts more protocols
- Increased participation leads to more liquidity and better trading conditions
- Better conditions attract more users and volume, benefiting all participants