Hermes Protocol officially launched in February 2022 and started emissions in March 2022. Hermes allows liquidity providers to take decisions on adding new gauges, boosting gauge yields, voting on token emission, and receive bribes. This protocol is an overall Improvement of both Curve Finance’s mechanics and game theory.
Hermes Protocol allows low cost, near 0 slippage trades on uncorrelated or tightly correlated assets. The protocol incentivizes fees instead of liquidity. Liquidity providers (LPs) are given incentives in the form of HERMES, the amount received is calculated as follows;
- 100% of weekly distribution weighted on votes from veHERMES holders
The above is distributed to gauges, however LPs will earn between 40% and 100% based on their own veHERMES balance.
LPs with 0 veHERMES balance, will earn a maximum of 40%.
Features
Swap
Pool
Farm
Stake
Vote
Bribes
Boosts
Permissionless incentivization
If you want to learn more about Hermes Protocol, please read our documentation: