Key concepts
Understand the essential concepts behind ALEX Surge, including LP tokens, voting mechanisms, and reward structures.
Surge Rounds & Phases ⏳
ALEX Surge operates in recurring rounds, with each round following a structured cycle that determines when pools can register, when users can vote, and when rewards are distributed. Each phase has a specific purpose, ensuring fair participation and smooth reward allocation.
LP Tokens 💧
LP (Liquidity Provider) tokens represent your ownership share in a liquidity pool. When you deposit assets into a pool on ALEX Lab, you receive LP tokens in return, which track your contribution relative to the total pool size.
In ALEX Surge, LP tokens play a crucial role in staking and rewards distribution. Liquidity providers can stake their LP tokens during a Surge round to earn a portion of the $ALEX rewards allocated to their chosen pool. The more LP tokens staked, the higher the potential rewards.
Since LP tokens fluctuate in value based on pool activity and market conditions, liquidity providers should consider factors like impermanent loss before staking.
Staking in Surge 🔹
Staking in ALEX Surge allows liquidity providers to commit their LP tokens to a specific pool in exchange for $ALEX rewards. By staking, participants help strengthen liquidity pools while earning rewards based on the total amount staked in each round.
LP tokens can only be staked during the staking phase of each Surge round and remain locked until the end of the reward emission phase. At that point, stakers can harvest their rewards and unstake their LP tokens. Rewards are distributed proportionally, meaning pools with more staked LP tokens and higher votes receive a larger share of $ALEX.
Staking is optional but offers an additional incentive for liquidity providers looking to maximize their returns in ALEX Surge.
Voting Power ⚖️
Voting power in ALEX Surge determines how much influence a participant has when distributing $ALEX rewards across liquidity pools. It is calculated based on a user’s $ALEX and $LiALEX holdings at the start of each Surge round.
Each user can allocate their voting power to one or multiple pools. The more votes a pool receives, the higher the share of rewards it earns. Once a vote is cast, the used voting power cannot be changed for that round.
Additionally, the ALEX Lab Foundation contributes 5,000,000 voting power in every round, influencing the reward distribution based on Social Leaderboard rankings.
Voting Mechanisms in ALEX Surge 🗳️
Voting in ALEX Surge determines how $ALEX rewards are allocated among liquidity pools. Participants cast votes using their voting power, which is calculated at the start of each round based on their $ALEX and $LiALEX holdings. Once submitted, votes cannot be changed for that Surge cycle.
Pools with higher vote totals receive a larger share of the $ALEX emissions, influencing the distribution of rewards across the ecosystem.
Voter Rewards 🎁
Voter rewards are additional incentives provided by liquidity pools to attract votes. Projects or pool creators can donate extra rewards, which are distributed among users who vote for their pool during a Surge round.
Once voter rewards are allocated, they cannot be withdrawn or modified. Users who support pools offering these incentives receive their share of the donated rewards after the emission phase ends.
The Social Leaderboard 📈
The Social Leaderboard is a ranking system in ALEX Surge that rewards community engagement. Pools that actively promote their participation on Twitter/X can improve their ranking and increase their chances of receiving votes from the ALEX Lab Foundation.
Leaderboard rankings are based on social media engagement, including likes, reposts, and replies. To be considered in each Surge round, projects must submit their social activity through Discord or Blocksurvey before the voting phase ends.
Reward Distribution 💰
In ALEX Surge, rewards are distributed based on the number of votes a liquidity pool receives and the amount of LP tokens staked. The total $ALEX rewards allocated to a Surge round are divided among pools according to their voting share.
Liquidity providers who stake LP tokens in pools that receive votes earn rewards proportional to their stake. Additionally, some pools may offer voter rewards as extra incentives for participants who vote for them.
Cut-off Dates 🚨
Risks and Considerations ⚠️
Participating in ALEX Surge involves risks similar to providing liquidity in any AMM-based DEX. Impermanent loss can occur if token prices fluctuate, affecting the value of staked LP tokens. Additionally, once voter rewards are donated, they cannot be withdrawn. Understanding these risks helps participants make informed decisions before voting or staking.
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